The merger of a Bethesda-based, hotel-focused real estate investment trust, with a Canadian REIT has again been delayed.
Condor Hospitality Trust Inc. announced Friday that it and NexPoint Hospitality Trust of Toronto have agreed to extend the closing date of their merger to Feb. 28, which could further be extended to March 16. The close of the merger is also subject to the satisfaction or waiver of certain remaining closing conditions.
Condor’s stock price fell as low as $10.35 per share before rallying to $10.82 on Friday morning, a loss of 2.43%.
At the time the deal was announced, the companies expected to close it in the fourth quarter of 2019. In mid-December, Condor said it would close the deal on Jan. 31. Under the deal announced in July 2019, Condor will be acquired for roughly $318 million, paid in cash and in debt, including by assuming some of Condor’s debt. NexPoint will pay $11.10 per common share to stockholders, a premium of about 34% over its closing price before the deal. The stock has traded for as high as $11.20 in December.
Condor owns 15 hotels in the United States. In Maryland, it owns the Hilton Garden Inn in Solomons.