Condor Hospitality Trust, a Maryland-based hotel-focused real estate investment trust (REIT), has completed the divestment of the 59-room Quality Inn & Marina in Solomons, Maryland for $4.3m.
The company plans to use the net proceeds from the sale to reduce the outstanding debt on its $150m secured credit facility.
Condor CEO Bill Blackham said: “We are delighted with the closing of the sale of our last remaining legacy hotel, the Quality Inn & Marina in Solomons, Maryland. This concludes our initiative that began 4 years ago and has resulted in the sale of 55 hotels generating $170 million in gross proceeds during that time.
“Our portfolio is now solely comprised of high-quality select-service hotels that continue to outperform both the broad upscale and upper midscale sectors and our publicly-traded select-service peers.”
In September 2018, Condor’s board initiated a process to analyse strategic alternatives to boost shareholder value.
This evaluation process will be conducted with the help of financial and legal advisors. The process will consider the complete range of potential strategic alternatives, which includes business combinations, joint ventures, acquisitions, public and private capital raises, recapitalisation, and sale transaction options.
It appointed KeyBanc Capital Markets as financial advisor and McGrath North as legal counsel to help in the review.
In April 2018, Condor completed the divestment of 121-room Super 8 in Creston, Iowa for $5.1m.
Net proceeds from the divestment were used reduce the outstanding debt on the company’s $150m secured credit facility.