NORFOLK, NE–(hospitalitybusinessnews.com) – October 02, 2015 – Condor Hospitality Trust, Inc., announced today that it has completed the previously announced acquisition of three premium-branded hotels for $42.5 million. The three properties are comprised of the following:
- 116-room SpringHill Suites Downtown, San Antonio, Texas
- 142-room Hotel Indigo Atlanta Airport, College Park, Georgia
- 120-room Courtyard Jacksonville Flagler Center, Jacksonville, Florida
“The acquisition of these three relatively new, high-quality hotels provides a vision of the company’s portfolio of the future and aligns perfectly with the new investment strategy underway,” said Bill Blackham, Condor Hospitality’s CEO. “These hotels are located in vibrant markets with solid growth potential and enjoy the benefit of premier brands.”
“Condor has accelerated the disposition of legacy hotels in order to recycle capital from older properties in the economy segment and reinvest in newer, higher quality assets transitioning the company into a hospitality real estate investment trust owning a portfolio in the premium, select-service, extended stay and limited-service hotel segments with the goal of delivering more attractive returns to our shareholders,” said Blackham. “The hotels were introduced to Condor by Peachtree Hospitality Management under our initiative of aligning with hotel management companies to identify prospective hotel acquisitions meeting our investment criteria and build long term relationships. Peachtree Hospitality Management will manage all three hotels and we anticipate that all of our existing and new hotel management relationships will grow as the transition of the company evolves.”
The company funded the acquisitions with cash on hand, primarily from prior legacy hotel dispositions, and with debt financing including the assumption of an existing loan and a newly originated loan with GE Capital Franchise Finance Corporation. The acquisitions are projected to be accretive to 2015 fourth quarter results.