Nebraska REIT Closes on $42.5M Hotel Portfolio
- Oct 13, 2015
By Anca Gagiuc, Associate Editor
Norfolk, Neb. – The Nebraska-headquartered Condor Hospitality Trust Inc. entered the Texas market through the acquisition of a $42.5 million hotel portfolio that includes the SpringHill Suites Downtown Hotel in San Antonio. The 116-room hotel, located at 524 S. St. Mary’s St., accounted for $17.5 million of the transaction. The other two properties in the portfolio are the 142-room Hotel Indigo Atlanta Airport in College Park, Ga and the 120-room Courtyard Jacksonville Flagler Center in Jacksonville, Fla.
“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.”
The portfolio was acquired with cash on hand, 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.
“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 seller, Peachtree Hotel Group, will continue to manage all three hotels.