BETHESDA, Md.--(BUSINESS WIRE)--Condor Hospitality Trust, Inc. (NYSE American: CDOR) today announced results for the second quarter ended June 30, 2020.

SECOND QUARTER RELEASE FINANCIAL HIGHLIGHTS

• Revenue in the second quarter 2020 of $4.8 million, comprised of $4.8 million generated entirely from New Investment Platform Hotels, a 70.3% decrease from $16.2 million generated by New Investment Platform Hotels in the second quarter 2019.
• Same-Store Revenue of $4.8 million for the second quarter 2020 decreased $14.5 million over the second quarter Same-Store Revenue of $19.4 million in 2019, while Same-Store ADR for the New Investment Platform Hotels decreased 31.3% in the second quarter of 2020 compared to the second quarter of 2019, and Same-Store RevPAR for the New Investment Platform Hotels in the 2020 second quarter decreased 71.8% compared to the same quarter in 2019, all adversely affected by the COVID-19 pandemic and industry wide falloff of travel.
• Net Earnings (Loss) Attributable to Common Shareholders of ($6.3 million), or ($0.53) per Diluted Share in the second quarter, compared to ($1.4 million), or ($0.12) per share, in the 2019 second quarter. Decline in Net Earnings Attributable to Common Shareholders primarily caused by decreased revenues and the resulting $7.7 million decrease in hotel EBITDA in the second quarter compared to the same period in 2019 attributable to the COVID-19 pandemic.
• Adjusted Funds from Operations was ($3.2 million), or ($0.26) per Diluted Share, a $6.7 million decrease from $3.5 million, or $0.28, in the 2019 second quarter.
• Same-Store Hotel EBITDA decreased to ($0.2) million from $7.7 million in Last Year’s Second Quarter.

MANAGEMENT COMMENTARY

Bill Blackham, Condor’s Chief Executive Officer, commented:

“Since early March of this year Condor’s focus has shifted from driving hotel revenues and operating performance to meet or exceed budgets to COVID-19 induced crisis management. In the second quarter of 2020, our portfolio same-store RevPAR decline of 71.8% is comparable to the 74.8% decline in upscale hotels nationally as calculated by Smith Travel Research and compared modestly favorable to the RevPAR declines announced by our publicly traded select service peer group as is our decline in our EBITDA margin to (3.1%). In addition to the improving but tepid hotel demand caused by the COVID 19 pandemic there remain positive trends that have surfaced during late quarter that are noteworthy. The rapid shutdown of demand in March caused for the portfolio occupancy to begin the second quarter at approximately 10% occupancy for the first week and end the quarter at approximately 50% occupancy for the final week. The chart above illustrates this increase throughout the quarter and beyond and shows the weeks long pause in further increases, but continuation of occupancy of approximately 50% at the end of July. The two closed hotels were reopened in early July and so the chart is bifurcated to be comparable throughout the quarter. With 10 of the 15 hotels located in Florida, Texas, and Georgia, states that began early opening up businesses on a limited basis, the portfolio was positioned to gain the benefit of being located in states taking actions to stimulate economic conditions. We are in discussions with NexPoint Hospitality Trust concerning potential amendments to restructure the previously announced acquisition by merger of the Company, which will be disclosed if and when such amendments are agreed. There can be no assurance with respect to the outcome of such discussions, and we continue to review our options and reserve all rights and remedies under the merger agreement.”

BALANCE SHEET

As of June 30, 2020, the Company had cash and cash equivalents (including restricted cash) of $10.5 million. As of June 30, 2020, the Company had total outstanding long-term debt of $180.4 million with a weighted average maturity of 1.2 years and a weighted average interest rate of 3.63%.

PORTFOLIO ACTIVITY

On February 14, 2020, the Company completed the acquisition of the remaining 20% interest in the joint venture that owns the Atlanta Aloft property (the “Atlanta Aloft”) for $7.3 million. The acquisition was funded with debt drawn under the Company’s Key Bank revolving credit facility.

CAPITAL INVESTMENTS

The Company invested $0.3 million in capital improvements throughout the portfolio in the six months ended June 30, 2020 to upgrade its properties and maintain brand standards.

OUTLOOK AND GUIDANCE

The Company has suspended guidance until further notice.

DIVIDENDS

On March 30, 2020, the Sixth Amendment to the Key Bank credit facility was signed which provides that no cash dividends or distributions may be made to common or preferred shareholders for the remaining term of the debt.

EARNINGS CALL

The Company will not be conducting a second quarter earnings conference call.

About Condor Hospitality Trust, Inc.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a self-administered real estate investment trust that specializes 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. The Company currently owns 15 hotels in 8 states. Condor’s hotels are franchised by a number of the industry’s most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels.