Condor Hospitality To Consider Strategic Alternatives
The REIT has been selling off non-core properties for the last three years to build a portfolio of select-service assets.
BETHESDA, MD–After three years of a dramatic repositioning of its portfolio, Condor Hospitality Trust is looking at its strategic alternatives.
The review process will consider a full range of potential moves, including acquisitions, business combinations, joint ventures, public and private capital raises, recapitalization, and sale transaction options.
Condor CEO Bill Blackham said that the company has assembled what is arguably “one of the highest quality and performing portfolios of select-service assets in the public hotel REIT space.”
The company has engaged KeyBanc Capital Markets as financial advisor and McGrath North as legal counsel to assist in the review.
Condor Hospitality currently owns 16 hotels in 8 states and are franchised by such flags as Hilton, Marriott, and InterContinental Hotels Group. Earlier this month it closed on the sale of one of its legacy hotel asset, the 121-room Super 8 in Creston, Iowa for $5.1 million. “Having completed the sale of the Super 8 in Creston Iowa, Condor now owns only one legacy hotel, the Quality Inn & Marina in Solomons, Maryland,” Blackham said.
“This Quality Inn has been listed with a brokerage and advisory firm and is actively being marketed for sale and is expected to close late in the fourth quarter or early in the first quarter of 2019.”
Since the beginning of 2015, the REIT has sold an aggregate of 54 legacy hotels generating over $165 million in gross proceeds. It has recycled the net proceeds into 14 select-service assets representing approximately $277 million.