Dealmaker: Condor Hospitality Trust Acquires Two Texas Hotels for $39M

Condor Hospitality Trust, Bethesda, Md., acquired two Marriott-branded Texas hotels, Fairfield Inn & Suites El Paso Airport and Residence Inn Austin Airport, for $38.8 million.

Ambridge Hospitality, Plano, Texas, will continue to manage both hotels.

Condor has a third Marriott-branded hotel, TownePlace Suites Austin North Tech Ridge, under contract for $19.7 million. The real estate investment trust expects to close that deal in first-quarter 2018.

Bill Blackham, CEO of Condor, noted both hotels are less than two years old and both transactions closed in 46 days. He said they fit the firm’s investment strategy of acquiring premium-branded select-service hotels in attractive secondary markets.

Condor achieved 7.4 percent annual revenue per available room growth in first-half 2017 for its new investment platform hotels, Blackham said.

The firm also sold another hotel asset, the 81-room Quality Inn Morgantown in Morgantown, W.V., for $2.6 million. Net proceeds from this sale went to outstanding debt on a $150 million secured credit facility the firm opened in May. Blackham said Condor has now sold six of the seven hotel assets it planned to sell during 2017, generating $22.7 million in gross proceeds.

With these acquisitions, Condor has acquired twelve Class A premium-branded select-service hotels totaling 1,593 guest rooms for $240 million since fourth-quarter 2015. The company currently owns 21 hotels in 11 states.