Condor Hospitality Trust Announces Sale of Non-Core Legacy Hotel (5/18/17)
BETHESDA, Md., May 18, 2017 (GLOBE NEWSWIRE) -- Condor Hospitality Trust, Inc. (NASDAQ:CDOR), a hotel-focused real estate investment trust (REIT) headquartered and incorporated in the state of Maryland, today announced the closing on the sale of a legacy hotel asset, the 40-room Key West Inn located at 201 Ocean Drive, Key Largo, FL 33037 for $7.6 million. Net proceeds from the sale will be applied to outstanding debt on the Company’s $150 million secured credit facility. The Company was represented in the transaction exclusively by Hospitality Real Estate Counselors.
“We are pleased to execute our fifth legacy hotel sale of 2017 as part of our ongoing capital recycling initiative. The Key Largo disposition is an example of the Company’s ability to capture the intrinsic value of certain legacy hotels, in this case the value of the redevelopment opportunity of the land and marina in Key Largo. The revenue multiple for the Key Largo disposition was 5.0x, as compared to the attractive 2.5x – 3.0x multiples achieved with previous legacy dispositions,” said Bill Blackham, Condor’s Chief Executive Officer. “The five year-to-date hotel closings have generated gross proceeds of approximately $20.1 million. This week, we have also placed under contract the two remaining legacy hotels of the seven we committed to dispose of in 2017; however, there can be no guarantee these transactions will close. Proceeds from these expected dispositions will likely be applied to existing debt, which should allow for the acquisition of additional high-quality select-service hotels. We fully anticipate ending 2017 with only six of the legacy hotels remaining, down from 55 at the beginning of 2015,” Mr. Blackham continued.
About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. (NASDAQ:CDOR), is a self-administered real estate investment trust incorporated in the state of Maryland that 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 18 hotels in 11 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott/Starwood, InterContinental Hotels Group, Choice, and Wyndham. For more information or to make a hotel reservation, visit www.condorhospitality.com. https://globenewswire.com/news-release/2017/05/18/987822/0/en/Condor-Hospitality-Trust-Announces-Sale-of-Non-Core-Legacy-Hotel.html