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Condor Hospitality Closes 7th Legacy Hotel Sale of 2017
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Condor Hospitality Trust, Inc. announced the sale of a non-core 176-room legacy hotel — Days Inn — located at 200 John Wesley Blvd., Bossier City, LA, for $1.4 million. This marks the company’s seventh legacy hotel sale of 2017, a move that comes as part of its capital recycling efforts.
Per Bill Blackham, Condor’s chief executive officer, the sale of Days Inn enabled the company to achieve its target of disposing seven legacy hotel assets during 2017. Notably, Condor Hospitality, which specializes in investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited-service hotels, has reaped approximately $24.1 million in gross proceeds from the sale of seven hotels, year to date. It plans to apply the proceeds to outstanding debt on its $150-million secured credit facility.
The move to sale non-core assets is a strategic fit, as it offers the company scope to apply the proceeds to the existing debt, and in turn, enjoy flexibility in the acquisition of additional superior hotels. Hence, the capital-recycling initiatives are anticipated to help the company achieve a favorable portfolio mix.
Currently, Condor has just six remaining legacy assets. Of these, four have been labelled as held for sale, following the recent buyout of the Fairfield Inn & Suites El Paso and the Residence Inn Austin hotels. By year end, it plans to either sell off these additional legacy hotels or retain the same under contract for sale. This is a notable achievement when compared with 55 such hotels which the company had at the beginning of 2015.
On the other hand, Condor has also been beefing up its portfolio with high-quality hotel acquisitions. In fact, with the acquisition of the two Marriott-branded hotels — Fairfield Inn & Suites El Paso Airport and the Residence Inn Austin Airport — the company has accomplished around $240 million of buyouts, denoting 12 high-quality premium-branded select-service hotels, comprising 1,593 rooms in aggregate, since fourth-quarter 2015.
However, shares of Condor Hospitality have underperformed the industry it belongs to, in the past three months. This Zacks Rank #3 (Hold) company’s shares have declined 4.7%, while the industry fell 0.2% during this time frame.
While PS Business Parks and InfraREIT have expected long-term growth rates of 5% and 8%, respectively, the expected long-term growth rate for UMH Properties is currently pegged at 10%.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
4 Promising Stock Picks to Keep an Eye On
With news stories about computer hacking and identity theft becoming increasingly commonplace, the cybersecurity industry looks like a promising investment opportunity. But which stocks should you buy? Zacks just released Cybersecurity: An Investor’s Guide to Locking Down Profits to help answer this question.
This new Special Report gives you the information you need to make well-informed investment choices in this space. More importantly, it also highlights 4 cybersecurity picks with strong profit potential.
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Condor Hospitality Closes 7th Legacy Hotel Sale of 2017
Condor Hospitality Trust, Inc. announced the sale of a non-core 176-room legacy hotel — Days Inn — located at 200 John Wesley Blvd., Bossier City, LA, for $1.4 million. This marks the company’s seventh legacy hotel sale of 2017, a move that comes as part of its capital recycling efforts.
Per Bill Blackham, Condor’s chief executive officer, the sale of Days Inn enabled the company to achieve its target of disposing seven legacy hotel assets during 2017. Notably, Condor Hospitality, which specializes in investment and ownership of upper midscale and upscale, premium-branded select-service, extended stay and limited-service hotels, has reaped approximately $24.1 million in gross proceeds from the sale of seven hotels, year to date. It plans to apply the proceeds to outstanding debt on its $150-million secured credit facility.
The move to sale non-core assets is a strategic fit, as it offers the company scope to apply the proceeds to the existing debt, and in turn, enjoy flexibility in the acquisition of additional superior hotels. Hence, the capital-recycling initiatives are anticipated to help the company achieve a favorable portfolio mix.
Currently, Condor has just six remaining legacy assets. Of these, four have been labelled as held for sale, following the recent buyout of the Fairfield Inn & Suites El Paso and the Residence Inn Austin hotels. By year end, it plans to either sell off these additional legacy hotels or retain the same under contract for sale. This is a notable achievement when compared with 55 such hotels which the company had at the beginning of 2015.
On the other hand, Condor has also been beefing up its portfolio with high-quality hotel acquisitions. In fact, with the acquisition of the two Marriott-branded hotels — Fairfield Inn & Suites El Paso Airport and the Residence Inn Austin Airport — the company has accomplished around $240 million of buyouts, denoting 12 high-quality premium-branded select-service hotels, comprising 1,593 rooms in aggregate, since fourth-quarter 2015.
However, shares of Condor Hospitality have underperformed the industry it belongs to, in the past three months. This Zacks Rank #3 (Hold) company’s shares have declined 4.7%, while the industry fell 0.2% during this time frame.
Stocks to Consider
Better-ranked stocks in the REIT space include PS Business Parks, Inc. , InfraREIT Inc. and UMH Properties, Inc., (UMH - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
While PS Business Parks and InfraREIT have expected long-term growth rates of 5% and 8%, respectively, the expected long-term growth rate for UMH Properties is currently pegged at 10%.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
4 Promising Stock Picks to Keep an Eye On
With news stories about computer hacking and identity theft becoming increasingly commonplace, the cybersecurity industry looks like a promising investment opportunity. But which stocks should you buy? Zacks just released Cybersecurity: An Investor’s Guide to Locking Down Profits to help answer this question.
This new Special Report gives you the information you need to make well-informed investment choices in this space. More importantly, it also highlights 4 cybersecurity picks with strong profit potential.
Get the new Investing Guide now>>