Condor Hospitality Trust, Inc. (NYSE American: CDOR) today announced that it has executed an agreement to purchase the 93-room Home2 Suites by Hilton located in Summerville, South Carolina, a suburb of Charleston. The contracted purchase price for the hotel is $16,325,000. The hotel will likely be managed by a new addition to the Company’s group of management company alliance partners.
“The Home2 Suites Summerville fits squarely within Condor’s investment strategy. The hotel, newly-opened in 2017, is attractively located in the heart of Summerville, one of the fastest growing suburbs of Charleston. Charleston is the 74th largest MSA in the United States and has seen dramatic growth over the past five years as a result of corporate relocations and a rapidly growing population. Corporate demand is well-diversified with companies in the automotive, aerospace, bioscience, technology, and distribution industries. Volvo is investing $1 billion to build its first U.S. plant along Interstate 26 between Summerville and Ridgeville. Additionally, the mixed-use Nexton community, a 4,500-acre swath of land at the northwest junction of Interstate 26 and U.S. Highway 17A near the hotel, will one day house 7,000 single-family homes, 6 million square feet of commercial space, and a medical center. We fully expect the hotel to achieve strong top-line revenue growth due to the increasing corporate demand and strong population growth in the region,” stated Bill Blackham, Condor’s Chief Executive Officer.
“Additionally, we view the acquisition of the Home2 to be very attractive in light of the recent announcement by another public hotel REIT of a Marriott Courtyard acquisition nearby in the same market for $210,000 per room. Assuming the closings of the Home2 Suites Summerville and the TownePlace Suites Austin North Tech Ridge, which is also currently under contract, occur in the first quarter of 2018, we will have acquired approximately $276 million of acquisitions since the fourth quarter of 2015, representing fourteen high-quality premium-branded select-service hotels flagged under the leading Marriott, Hilton, and IHG hotel brands,” added Mr. Blackham.
The closing of the acquisition of the hotel is expected to occur late in the first quarter or early second quarter of 2018, but is subject to customary closing conditions including accuracy of representations and warranties and compliance with covenants and obligations.
Condor Hospitality Trust, Inc. (NYSE American: CDOR), is a self-administered real estate investment trust incorporated in the state of Maryland that specializes in the investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited-service hotels. The Company currently owns 19 hotels in 9 states.