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Condor Hospitality Trust has deal to be bought for $318M

Representatives of Condor Hospitality Trust Inc. of Bethesda rang the NYSE's ceremonial bell in July 2017 to celebrate the company's new listing on NYSE MKT. (Screenshot from NYSE video)

Representatives of Condor Hospitality Trust Inc. of Bethesda rang the NYSE’s ceremonial bell in July 2017 to celebrate the company’s new listing on NYSE MKT. (Screenshot from NYSE video)

A Maryland real estate investment trust focused on premium and extended-stay hotels has a deal to be acquired by a Canadian REIT, a development that boosted its stock price Monday morning.

Under the deal, Condor Hospitality Trust Inc. will be acquired by NexPoint Hospitality Trust of Toronto for roughly $318 million, paid in cash and in debt, including by assuming some of Condor’s debt, NexPoint announced. The deal is not contingent on receipt of financing, NexPoint said.

NexPoint will pay $11.10 per common share to stockholders, a premium of roughly 34 percent over Condor’s closing price of $8.27 on Friday, the company said in a news release.

Condor’s stock opened at $10.99 per share on Monday and was trading near that level early Monday morning.

The companies expect the deal to close in the fourth quarter of 2019, subject to closing conditions and approval of Condor’s common and preferred shareholders. NexPoint says it has agreements with shareholders that own roughly 53% of the common stock and 100% of the preferred stock to vote in favor of the acquisition, but it also cautioned that it can’t promise the deal will close.

It wasn’t immediately clear how the proposed deal might affect Condor’s headquarters in Bethesda. A spokeswoman for NexPoint refused to comment to The Daily Record about the deal. A Condor spokeswoman did not immediately respond to a request for comment.

Condor announced in September 2018 that it had begun a process to look at possible changes in strategy, including mergers, acquisitions and sales.

Condor’s CEO Bill Blackham said in a news release that the deal was the conclusion of that strategic process and that Condor shareholders are receiving a liquidity event at an attractive premium to the company’s unaffected share price before the transaction announcement.

Condor owns 15 hotels in the United States. In Maryland, it owns the Hilton Garden Inn in Solomons.


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