NexPoint Hospitality Trust Announces Acquisition of Units by Company controlled by Founder

DALLAS and TORONTO, April 19, 2024 /CNW/ -- NexPoint Hospitality Trust ("NHT" or the "REIT"), (TSX-V: NHT.U) and James Dondero announced today that NexPoint Real Estate Opportunities, LLC, an entity that is deemed to be indirectly controlled  by Mr. Dondero by virtue of his control over the external advisor of that entity's parent company, has acquired 2,176,257 units of the REIT at a price of US$0.36 per unit and an aggregate purchase price of US$783,452.52. Based on the daily average exchange rate for US dollars to Canadian dollars on April 18, 2024, the Canadian dollar equivalent for the price per unit is approximately CDN$0.50 and the aggregate purchase price is CDN$1,078,344.

Prior to the acquisition, Mr. Dondero, together with the persons and entities which are directly or indirectly controlled or deemed to  be controlled by him, beneficially owned or exercised control or direction over 21,988,443 units, representing an approximate 74.91% ownership interest in the REIT (74.39%, assuming conversion of all outstanding Class B units of the REIT's operating partnership, NHT Operating Partnership, LLC ("Class B OP Units")).

After giving effect to the acquisition, Mr. Dondero, together with the persons and entities which are directly or indirectly controlled or deemed to be controlled by him, beneficially own or exercise control or direction over 24,164,700 units, representing an approximate 82.33% ownership interest in the REIT (81.75% assuming conversion of all outstanding Class B OP Units).

The units held by Mr. Dondero are for investment purposes and he may, depending on market and other conditions, increase or decrease his beneficial ownership or control of the units whether through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise.

The units were purchased in reliance on the private agreement exemption under section 4.2 of National Instrument 62-104 – Take-Over Bids and Issuer Bids. In particular, the purchase of the common shares was made from not more than five persons in the aggregate, the bid was not made generally to security holders of the class of securities that is the subject of the bid, and the value of the consideration being paid by Mr. Dondero for the units, including brokerage fees and commissions, is not greater than 115% of the market price of the securities at the date of the bid as determined in accordance with section 1.11 of National Instrument 62-104 – Take-Over Bids and Issuer Bids.

This press release is issued pursuant to the early warning provisions of Canadian securities legislation. A copy of the Early Warning Report to be filed by Mr. Dondero in connection with the transactions described above will be available on the REIT's SEDAR+ profile at www.sedarplus.ca.

The head office of the REIT is located at 333 Bay Street, Suite 3400, Toronto, Ontario, Canada M5H 2S7. Mr. Dondero's address is 300 Crescent Court, Suite 700, Dallas, TX 75201.

To obtain a copy of the Early Warning Report filed under National Instrument 62-103, please contact:

About NHT

NexPoint Hospitality Trust is a publicly traded real estate investment trust, with its units listed on the TSXV under the ticker NHT.U. NHT is focused on acquiring, owning and operating well-located hospitality properties in the United States that offer a high current yield and in many cases are underperforming assets with the potential to increase in value through investments in capital improvements, a market-based recovery, brand repositioning, revenue enhancements, operational improvements, expense inefficiencies, and exploiting excess land or underutilized space. NHT owns 9 branded properties sponsored by Marriott, Hilton, Hyatt, and Intercontinental Hotels Group, located across the U.S. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE NexPoint Hospitality Trust