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 buyer 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. 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." 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. stated " We believe that this is an extremely attractive transaction for Company’s shareholders with a highly credible and very experienced buyer. 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.īill Blackham C.E.O. This is an all cash transaction without the assumption of any existing debt. (NYSE American: CDOR) (the “Company”) announced today that it has entered into an agreement with affiliates of Blackstone Real Estate Partners to sell its entire portfolio of hotels in a $305 million transaction. Blackstone had previously acquired the hospitality company in 2004, only to turn around and sell it in 2007.NORFOLK, Neb.-( BUSINESS WIRE)-Condor Hospitality Trust, Inc. To that end, Blackstone and Starwood Capital Group in March struck a $6 billion deal to acquire Extended Stay America. “We do think people will return to travel - individual and leisure travel first and over time corporate and group travel, so it’s a sector we like,” Blackstone president Jonathan Gray said on a July earnings call. As of the end of the second quarter, hospitality accounted for about 7 percent of the company’s real estate portfolio.Īfter doubling net income from $568 million to $1.3 billion in the second quarter year-over-year, Blackstone signaled earlier this year it was looking to get back to hospitality. Condor’s corporate headquarters are in Bethesda, Maryland.īlackstone retreated from the hotel industry right before the pandemic, focusing more of its efforts on rental housing, industrial buildings and the life sciences. The most prominents cities in the company’s portfolio include Austin (two hotels), Atlanta (two hotels), San Antonio (one hotel) and Jacksonville (one hotel). That plan is also contingent on the approval of company shareholders.Ĭondor has 15 hotels in its portfolio across eight states for a total of 1,908 rooms. Condor plans to pay outstanding liabilities after the transaction, before distributing net proceeds from the sale to shareholders. The company also announced its board of directors adopted a plan to liquidate and dissolve the business. This appears to be the beginning of the end for Condor. The transaction is expected to close in the fourth quarter pending the approval of shareholders, according to Hotel Business. The trust is set to sell its hotel portfolio to affiliates of Blackstone Real Estate Partners for $305 million in an all-cash, no existing debt deal. William Blackham and Blackstone CEO Stephen Schwarzman (Condor, Getty)Ĭondor Hospitality is getting out of the hotel business - in fact, it appears it’s getting out of business altogether.
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