Condor Hospitality Trust, Inc. Announces Stockholder Approval of Proposed Plan of Liquidation

Rhea-AI Summary

Condor Hospitality Trust, Inc. (CDOR) announced that stockholders approved a liquidation proposal during a special meeting held on December 1, 2021. This decision allows the Company to dissolve and liquidate its assets, following its previous meeting on November 12, 2021. Before this resolution, Condor owned 15 hotels across 8 states, focusing on midscale and upscale properties. The plan comes after a significant downturn in the hospitality sector and reflects the Company’s strategic shift. It is critical for investors to monitor the liquidation process and potential impacts on share value.

Positive

• Stockholders approved the liquidation proposal, allowing a clear exit strategy.
• Condor previously owned 15 hotels, providing a tangible asset base for liquidation.

Negative

• The approval of liquidation may lead to a loss of shareholder value.
• The decision reflects underlying financial difficulties in the hospitality sector.

NORFOLK, Neb.--(BUSINESS WIRE)-- Condor Hospitality Trust, Inc. (NYSE American: CDOR) (the “Company”), a hotel-focused real estate investment trust (“REIT”) headquartered and incorporated in the state of Maryland held a special meeting of stockholders on November 12, 2021 and adjourned the meeting until December 1, 2021 for the limited purpose of allowing additional time for stockholders to vote on the liquidation proposal to approve the dissolution and liquidation of the Company. The Company today announced that at the reconvened special meeting of stockholders on December 1, 2021 the Company stockholders approved the liquidation proposal, as set forth in the Company’s Definitive Proxy Statement as filed with the Securities and Exchange Commission (“SEC”) on October 18, 2021, pursuant to which the Company will sell all or substantially all of the Company’s assets and be dissolved.

About Condor Hospitality Trust, Inc.

The Company is a self-administered REIT that previously specialized in the investment and ownership of upper midscale and upscale, premium-branded, select-service, extended-stay, and limited-service hotels in the top 100 Metropolitan Statistical Areas (“MSAs”) with a particular focus on the top 20 to 60 MSAs. Prior to the Company’s portfolio sale on November 19, 2021, the Company owned 15 hotels in 8 states. The Company’s hotels were franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in the Company, operates and beliefs of and assumptions made by the Company’s management, involve uncertainties that could significantly affect the financial or operating results of the Company. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “should,” “may,” “projects,” “could,” “estimates” or variations of such words and other similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature, but not all forward-looking statements include such identifying words. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to creating value for shareholders, benefits of the proposed transaction to shareholders and employees — are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. For example, these forward-looking statements could be affected by factors including, without limitation, risks associated with (i) national, international, regional and local economic climates; (ii) the potential liability for a failure to meet regulatory requirements, including the maintenance of real estate investment trust status; (iii) risks associated with the ability to consummate the transaction; (iv) potential changes to tax legislation; (v) the potential impact of announcement of the proposed transaction or consummation of the proposed transaction and Plan of Liquidation on relationships, including with employees; (vi) the unfavorable outcome of any legal proceedings that may be instituted against the Company; (vii) impacts relating to COVID-19 or other pandemics or catastrophic events; and (viii) those additional risks and factors discussed in reports filed with the SEC by the Company from time to time, including those discussed under the heading “Risk Factors” in its filed reports on Form 10-K and 10-Q. Except to the extent required by applicable law or regulation, the Company disclaims any duty to update any forward-looking statements contained in this communication or to otherwise update any of the above-referenced factors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211201006099/en/

Jill Burger

Interim Chief Financial Officer & Chief Accounting Officer

jburger@trustcondor.com

(402) 371-2520

Source: Condor Hospitality Trust, Inc.

FAQ

What happened during the Condor Hospitality Trust special meeting on December 1, 2021?

Stockholders approved a liquidation proposal enabling the dissolution and liquidation of the Company.

What does the liquidation proposal mean for Condor Hospitality Trust stockholders?

It indicates that stockholders may experience a loss in value as the Company liquidates its assets.

When was the initial special meeting of stockholders for Condor Hospitality Trust held?

The initial special meeting was held on November 12, 2021.

What assets did Condor Hospitality Trust own before the liquidation?

Before liquidation, the Company owned 15 hotels across 8 states.

What is the stock symbol for Condor Hospitality Trust?

The stock symbol for Condor Hospitality Trust is CDOR.