Acquisitions Aligned With New Business Strategy - Report on Condor Hospitality Trust (7/22/15)
ACI Association has initiated research coverage on Condor Hospitality Trust, Inc. (NASDAQ: CDOR). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.
Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=CDOR
Highlights from our SPPR Report include:
Acquisition of Premium-Branded Hotels - On July 15, 2015, Condor Hospitality Trust, Inc. announced that it has signed agreements to acquire three, premium-branded hotels in an off-market transaction for $42.5 million. The property acquired includes the 142-room Hotel Indigo adjacent to the Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia, the 116-room SpringHill Suites by Marriott, San Antonio, Texas and the 120-room Courtyard by Marriott in Jacksonville, Florida. The transactions, which are anticipated to be completed by the third quarter of 2015, are expected to be accretive to fourth quarter 2015 results.
New Corporate Identity - The Company also reported the change of its name from Supertel Hospitality, Inc. to Condor Hospitality Trust, Inc. The Company's common stock trading symbol has changed from SPPR to CDOR. For the Company's series A preferred stock, the trading symbol has changed from SPPRP to CDORP. Further, for its series B preferred stock, the trading symbol has changed from SPPRO to CDORO.
Announcements in Line with New Strategy - Commenting on the acquisition, Bill Blackham, Condor Hospitality's CEO said, "The acquisition of these three hotels aligns perfectly with the new strategy underway at the company and creates a great opportunity for us to announce the renaming of the company to Condor Hospitality." Providing the rationale behind the change of name, Blackham said, "The name Supertel connotes economy and midscale hotels, segments that are no longer part of our future plans, which was an important part of the consideration behind renaming the company. The recently announced prospective acquisitions and the new name are consistent with the dynamic new direction for the company."
The Road Ahead - Blackham stated that the Company is in a state of transition. It is divesting older properties in the economy segment and investing in newer, contemporary hotels to create a significantly larger hospitality REIT comprised of a higher quality portfolio with greater margins and located in markets with better fundamentals. He added that the Company will remain highly disciplined in its acquisition investment strategy, and will continuously review its portfolio and upgrade into properties that it believes will generate more attractive returns.