Condor Hospitality Trust has agreed to sell its entire portfolio of hotels to Blackstone Real Estate Partners for $305 million in an all cash transaction without the assumption of any existing debt.
Condor’s portfolio is currently comprised of 15 hotels, representing 1,908 rooms across eight states.
Bill Blackham C.E.O. stated ” We believe that this is an extremely attractive transaction for company’s shareholders with a highly credible and very experienced buyer. Both Blackstone Real Estate Partners and the company have teams that have been working and will continue to work towards a timely and successful consummation of the transaction. The company portfolio is highly attractive as evidenced by the strong buyer interest that surfaced during the marketing process and appears to fit very well into the investment profile of our buyer.”
Blackstone has entered into voting agreements with certain shareholders of the company that hold approximately 60% of the outstanding common shares pursuant to which such holders have agreed to vote their shares in favor of the transaction.
Scott Trebilco, Managing Director of Blackstone Real Estate Partners, said, “We are pleased to have reached agreements with Condor and a majority of its shareholders. The portfolio is complementary to our existing select service hotels and is demonstrating strong performance, which we look forward to building on as travel continues to recover.”
The company also announced today that the company’s board of directors has unanimously adopted a Plan of Liquidation and Dissolution .
”The Plan of Liquidation contemplates an orderly wind down of the company’s business affairs. Following the closing of the sale of the hotel portfolio and the payment of outstanding liabilities, along with the taking of other actions specified in the Plan of Liquidation, including reserving for certain contingent liabilities and claims, the company intends to distribute certain net proceeds from the sale of the hotel portfolio to the company’s shareholders in one or more liquidating distribution installments. The implementation of the Plan of Liquidation is conditioned on obtaining approval of the company’s shareholders,” said the company in a press release.
Completion of the transaction, which is expected to occur in the fourth quarter of 2021, is subject to customary closing conditions, including the approval of the company’s shareholders.
