Bethesda, MD-based Condor Hospitality Trust Inc., a hotel-focused real estate investment trust headquartered and incorporated in the state of Maryland, revealed that the Board has initiated a process to evaluate strategic alternatives to enhance shareholder value. This review process, which will be conducted with the assistance of financial and legal advisors, will consider the full range of potential strategic alternatives, which includes but is not limited to, acquisitions, business combinations, joint ventures, public and private capital raises, recapitalization, and sale transaction options, according to a prepared statement.
The company has engaged KeyBanc Capital Markets as financial advisor and McGrath North as legal counsel to assist in the review and will engage such other advisors as it deems appropriate. There can be no assurances that the exploration of strategic alternatives will result in any transaction. Condor Hospitality does not intend to discuss or disclose developments with respect to the process unless and until otherwise determined that further disclosure is appropriate or required by regulation or law. No formalized timetable has been established for the completion of the strategic review.
Bill Blackham, Condor’s Chief Executive Officer, said, “Having completed a dramatic repositioning of the Company over the past three years and assembling arguably one of the highest quality and performing portfolios of select-service assets in the public hotel REIT space, now is the right time to review the Company’s strategic alternatives to assess how best to continue to create value for our shareholders. We will undertake a thorough and comprehensive review of all strategic alternatives with the assistance of our financial and legal advisors. During this time, the entire Condor team, working closely with our hotel managers, will remain highly focused on continuing to drive our hotel portfolio RevPAR growth and EBITDA margin expansion.”
Condor Hospitality Trust specializes in the investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited-service hotels. The company currently owns 16 hotels in 8 states.