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Acquisitions & Hotel Openings

Condor Hospitality Trust Completes Acquisition of Residence Inn Austin Airport and Fairfield Inn & Suites El Paso Airport for $38 Million

BETHESDA, MD. September 7, 2017 - Condor Hospitality Trust, Inc. (NYSE American: CDOR), a hotel-focused real estate investment trust (REIT) headquartered and incorporated in the state of Maryland, today announced that it has closed on the acquisition of two Marriott-branded hotels for $38,800,000. The closing includes the following hotels: the Fairfield Inn & Suites El Paso Airport and the Residence Inn Austin Airport. The hotels will continue to be managed by Ambridge Hospitality. The Company has a third Marriott-branded hotel, the TownePlace Suites Austin North Tech Ridge, under contract for $19,750,000, which is expected to close in the first quarter of 2018.

“With the closing of the Fairfield Inn & Suites El Paso Airport and the Residence Inn Austin Airport, we have now closed since the fourth quarter of 2015 approximately $240 million of acquisitions representing twelve high-quality premium-branded select-service hotels consisting of a total of 1,593 rooms. These two most recently acquired hotels, with an average age of less than two years and branded under two high-quality Marriott flags, fit squarely within our investment strategy of acquiring premium-branded select-service assets in attractive secondary markets,” stated Bill Blackham, Condor’s Chief Executive Officer. “Our extremely disciplined assemblage of a very high-quality portfolio of select-service hotels has led to strong RevPAR outperformance over the national averages, as demonstrated by our 7.4% RevPAR year-over-year growth in the first half of 2017 for our new investment platform hotels. Additional highlights of this transaction are that we closed the acquisition in 46 days, that we expanded our management company relationships with the addition of Aimbridge Hospitality, and that we remain under contract to acquire the TownePlace Suites Tech Ridge, expected to close in the first quarter of 2018,” added Mr. Blackham.

Refer to the Company’s Form 8-K to be filed with the Securities and Exchange Commission for a further description of the terms of the transaction.

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NYSE American: 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 21 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. Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the Company’s filings with the Securities and Exchange Commission.

Contact:
Jonathan J. Gantt
jgantt@trustcondor.com
301-861-3305

Coming Up In The December Online Hotel Business Review




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Feature Focus
Hotel Law: Issues & Events
There is not a single area of a hotel’s operation that isn’t touched by some aspect of the law. Hotels and management companies employ an army of lawyers to advise and, if necessary, litigate issues which arise in the course of conducting their business. These lawyers typically specialize in specific areas of the law – real estate, construction, development, leasing, liability, franchising, food & beverage, human resources, environmental, insurance, taxes and more. In addition, issues and events can occur within the industry that have a major impact on the whole, and can spur further legal activity. One event which is certain to cause repercussions is Marriott International’s acquisition of Starwood Hotels and Resorts Worldwide. This newly combined company is now the largest hotel company in the world, encompassing 30 hotel brands, 5,500 hotels under management, and 1.1 million hotel rooms worldwide. In the hospitality industry, scale is particularly important – the most profitable companies are those with the most rooms in the most locations. As a result, this mega- transaction is likely to provoke an increase in Mergers & Acquisitions industry-wide. Many experts believe other larger hotel companies will now join forces with smaller operators to avoid being outpaced in the market. Companies that had not previously considered consolidation are now more likely to do so. Another legal issue facing the industry is the regulation of alternative lodging companies such as Airbnb and other firms that offer private, short-term rentals. Cities like San Francisco, Los Angeles and Santa Monica are at the forefront of efforts to legalize and control short-term rentals. However, those cities are finding it’s much easier to adopt regulations on short-term rentals than it is to actually enforce them. The December issue of Hotel Business Review will examine these and other critical issues pertaining to hotel law and how some companies are adapting to them.