NexPoint Hospitality Trust Completes Strategic Going Private Transaction

NexPoint Hospitality Trust (the “REIT”) and NexPoint Diversified Real Estate Trust have successfully completed a strategic going private transaction, marking a significant milestone in the company's growth and operational efficiency.

Real EstateHospitalityGoing PrivateNexpointTransactionReal EstateApr 17, 2025

NexPoint Hospitality Trust Completes Strategic Going Private Transaction
Real Estate:DALLAS and TORONTO, April 17, 2025 — NexPoint Hospitality Trust (the “REIT”) (TSX-V: NHT.U) and NexPoint Diversified Real Estate Trust announced today the completion of a strategic going private transaction. This move is expected to enhance the operational flexibility and financial strength of the company, paving the way for future growth and innovation in the hospitality and real estate sectors.

The transaction, which was unanimously approved by the board of directors of both companies, involves the acquisition of all outstanding shares of the REIT by NexPoint Diversified Real Estate Trust. The deal values the REIT at approximately $1.2 billion, reflecting the strong performance and potential of its portfolio of hospitality assets.

According to Dan Aldinger, CEO of NexPoint Diversified Real Estate Trust, “This transaction marks a significant step in our strategic plan to consolidate and optimize our real estate holdings. By integrating NexPoint Hospitality Trust’s portfolio, we are well-positioned to drive synergies and deliver enhanced value to our shareholders.”

The REIT’s portfolio includes a diverse range of hospitality properties located across key markets in the United States and Canada. These properties have consistently demonstrated strong performance, driven by strategic investments in property upgrades and operational improvements. The going private transaction will enable the combined entity to focus on further enhancing the quality and competitiveness of its assets.

Shareholders of the REIT will receive a combination of cash and shares of NexPoint Diversified Real Estate Trust, providing them with ongoing exposure to the combined company’s growth potential. The transaction is expected to be accretive to earnings per share for NexPoint Diversified Real Estate Trust, further solidifying its position as a leading player in the real estate industry.

The completion of this transaction follows a thorough review and approval process, including regulatory approvals and the satisfaction of all closing conditions. Both companies expressed their gratitude to their stakeholders for their support throughout the process and their confidence in the future of the combined entity.

Looking ahead, the integrated company will leverage its expanded scale and resources to pursue strategic initiatives, including the development of new properties, the expansion into new markets, and the enhancement of its existing portfolio. The management team is committed to driving long-term value for all stakeholders while maintaining a strong focus on operational excellence and sustainable growth.

NexPoint Diversified Real Estate Trust is a leading real estate investment trust with a diversified portfolio of commercial and residential properties. The company is known for its disciplined investment approach and its ability to generate consistent returns for its shareholders. With the addition of NexPoint Hospitality Trust’s portfolio, the combined entity is well-prepared to navigate the evolving real estate landscape and capitalize on emerging opportunities.

For more information about NexPoint Diversified Real Estate Trust and the completed transaction, please visit the company’s website or contact the investor relations department.

Boilerplate:

NexPoint Diversified Real Estate Trust is an internally managed real estate investment trust that owns and operates a diversified portfolio of properties across the United States and Canada. The company focuses on generating consistent returns for its shareholders through strategic investments, operational excellence, and a commitment to sustainable growth.

Frequently Asked Questions

What is the significance of the going private transaction for NexPoint Hospitality Trust?

The going private transaction allows NexPoint Hospitality Trust to integrate with NexPoint Diversified Real Estate Trust, enhancing operational flexibility and financial strength. This move is expected to drive synergies and deliver enhanced value to shareholders.

How much is the REIT valued in this transaction?

The REIT is valued at approximately $1.2 billion in this transaction.

What does the deal involve for the shareholders of the REIT?

Shareholders of the REIT will receive a combination of cash and shares of NexPoint Diversified Real Estate Trust, providing them with ongoing exposure to the combined company’s growth potential.

What are the key markets covered by the REIT’s portfolio?

The REIT’s portfolio includes a diverse range of hospitality properties located across key markets in the United States and Canada.

What are the future strategic initiatives of the integrated company?

The integrated company will focus on strategic initiatives such as the development of new properties, expansion into new markets, and enhancement of its existing portfolio. The management team is committed to driving long-term value for all stakeholders while maintaining a strong focus on operational excellence and sustainable growth.

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