Condor Hospitality Outlines COVID-19 Response

Condor Hospitality Trust detailed its responses to mitigate the impact of COVID-19 on its hotel operations.

Financial markets have been disrupted, and there has been an industry-wide falling off of hotel occupancies. Condor's actions at the corporate and hotel levels include:

• Reducing all hotels operating expenses including closing off multiple floors, staffing reductions and furloughs, utility consumption and purchasing reductions, contract services reductions and eliminations, and certain reduction and elimination of certain marketing expenditures.
• Seeking potential alternative revenue sources through health care providers, government agencies, universities and airlines.
• Pursuing corporate cost reductions, including staffing reductions resulting in an approximately 20% decrease in non-consulting expenses compared to historical operations.
• Applications by Condor and its hotel operators for Paycheck Protection Program loans authorized under the recently congressionally approved CARES Act.
• Seeking potential recovery of certain losses through insurance coverage.
• Amending its Bank Credit Facility to provide extensions options out to March 1, 2022, waivers / modifications of certain covenants, and establishment of interest reserves for near term debt service payments as necessary. Condor has approached three of its remaining lenders for potential modifications to provide interest reserves or accruals during the second quarter. 
• Capital improvement projects have been suspended except for emergency circumstances and will remain on hold for immediate future, with the potential for the suspension to continue through 2020.

“The continuing support of the Bank Credit Group and our other lenders is greatly appreciated during this unprecedented period with severe disruption and widespread uncertainty in the markets and our own industry.” stated J. William Blackham, Condor’s Chief Executive Officer.

Condor has ceased temporarily operations at two of its hotels and continues to monitor status of three additional hotels that are potential candidates to be temporarily closed.

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.