Condor Hospitality selling hotels to Blackstone for $305M

Transaction comes as Condor plans liquidation and dissolution

National /
Sep.September 24, 2021 10:20 AM
Condor Hospitality CEO J. William Blackham and Blackstone CEO Stephen Schwarzman (Condor, Getty)

Condor Hospitality CEO J. William Blackham and Blackstone CEO Stephen Schwarzman (Condor, Getty)

Condor Hospitality is getting out of the hotel business — in fact, it appears it’s getting out of business altogether.

The trust is set to sell its hotel portfolio to affiliates of Blackstone Real Estate Partners for $305 million in an all-cash, no existing debt deal. The transaction is expected to close in the fourth quarter pending the approval of shareholders, according to Hotel Business.

This appears to be the beginning of the end for Condor. The company also announced its board of directors adopted a plan to liquidate and dissolve the business. Condor plans to pay outstanding liabilities after the transaction, before distributing net proceeds from the sale to shareholders. That plan is also contingent on the approval of company shareholders.

Condor has 15 hotels in its portfolio across eight states for a total of 1,908 rooms. The most prominents cities in the company’s portfolio include Austin (two hotels), Atlanta (two hotels), San Antonio (one hotel) and Jacksonville (one hotel). Condor’s corporate headquarters are in Bethesda, Maryland.

Blackstone retreated from the hotel industry right before the pandemic, focusing more of its efforts on rental housing, industrial buildings and the life sciences. As of the end of the second quarter, hospitality accounted for about 7 percent of the company’s real estate portfolio.

After doubling net income from $568 million to $1.3 billion in the second quarter year-over-year, Blackstone signaled earlier this year it was looking to get back to hospitality.

“We do think people will return to travel — individual and leisure travel first and over time corporate and group travel, so it’s a sector we like,” Blackstone president Jonathan Gray said on a July earnings call.

To that end, Blackstone and Starwood Capital Group in March struck a $6 billion deal to acquire Extended Stay America. Blackstone had previously acquired the hospitality company in 2004, only to turn around and sell it in 2007.

[Hotel Business] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    The price of a new home in China’s largest cities fell for the first time since 2015
    New home prices in China’s largest cities fall for first time since 2015
    New home prices in China’s largest cities fall for first time since 2015
    Real estate powers Blackstone’s best quarter ever
    Real estate powers Blackstone’s best quarter ever
    Real estate powers Blackstone’s best quarter ever
    Terreno Realty CEO W. Blake Baird and an aerial of the property (Google Maps)
    Terreno Realty pays $44M for NJ industrial site
    Terreno Realty pays $44M for NJ industrial site
    Madison Realty Capital Co-Founders Josh Zegen and Brian Shatz with a rendering of the River North development (Madison Realty Capital, FXCollaborative)
    Madison Realty’s altered plans for SI complex approved
    Madison Realty’s altered plans for SI complex approved
    Pandemic forces mom-and-pop landlord to sell out
    Pandemic forces mom-and-pop landlord to sell out
    Pandemic forces mom-and-pop landlord to sell out
    PBC's Eli Elefant and 452 Fifth Ave (PBC)
    Elefant’s PBC to liquidate $2B in US real estate, including HSBC building
    Elefant’s PBC to liquidate $2B in US real estate, including HSBC building
    Chinese developer willing to sell Manhattan supertall site at big loss
    Chinese developer willing to sell Manhattan supertall site at big loss
    Chinese developer willing to sell Manhattan supertall site at big loss
    SL Green CEO Marc Holliday, Chelsea Piers Fitness CEO David Tewksbury and One Madison Avenue (Getty, SL Green)
    Chelsea Piers is coming to SL Green’s One Madison
    Chelsea Piers is coming to SL Green’s One Madison
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...