Condor Hospitality Trust, Inc. (NASDAQ: CDOR), formerly Supertel
Hospitality, Inc., is a real estate investment trust (REIT) specializing in the
select-service segment of the lodging industry. The company currently owns 46
hotels across the country operated by some of the hotel industry’s most
well-regarded brand families – including Hilton (NYSE:HLT), Choice Hotels
International (NYSE:CHH) and Wyndham (NYSE:WYN). In recent months, Condor has
utilized an accelerated strategy aimed at transitioning its asset portfolio
away from economy properties in the direction of newer, premium-branded upper
midscale and upscale extended-stay hotels located primarily in the nation’s top
metropolitan areas.
“Condor has an active acquisition pipeline, and we
anticipate continuing the accelerated pace of capital recycling which we project
will further strengthen our balance sheet through debt reduction and increasing
liquidity, thereby enhancing the strategy underway to significantly grow the
company through acquiring a much higher quality portfolio with the objective of
increasing shareholder value,” Bill Blackham, chief executive officer of
Condor, stated in a news release.
In July, Condor gave prospective shareholders a preview of
this updated strategy when it announced the sale of two hotels in Alexandria,
Virginia. Through this $19 million transaction, the company was able to retire
$8.3 million in debt while applying the net proceeds to future acquisition
efforts. As of its latest update, Condor was marketing 15 hotels for sale,
which were expected to generate approximately $12.4 million in net proceeds
after associated debt repayments.
The company has also made considerable progress toward
bolstering its portfolio in recent weeks. Last month, Condor announced the
signing of an agreement to acquire three properties in San Antonio, Atlanta and
Jacksonville that fall squarely into its updated business strategy. These
hotels, which are currently branded under the Marriott (NYSE:MAR) and
InterContinental Hotels (NYSE:IHG) brand families, provide a “window into the
company’s portfolio of the future,” according to Blackham.
Despite its aggressive transition efforts, Condor has
continued to post strong financial results in recent months. In the second
quarter of 2015, the company recorded $16.4 million in revenue from continuing
operations, realizing a mild year-over-year increase. These results were driven
by Condor’s increased revenue per available room, which rose by 4.3 percent
from the previous year. This consistent performance should aid in the company’s
continued efforts to transform its current property portfolio in the months to
come.
For prospective shareholders, the company’s recent progress
toward transitioning its property portfolio makes it an intriguing investment
opportunity moving forward. Look for Condor to make significant strides toward
achieving increased shareholder value as it works to strategically position
itself in some of the country’s most lucrative hospitality markets.
For more information, visit www.condorhospitality.com
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
