NexPoint Hospitality Trust Announces Fiscal Year 2020 Financial Results

DALLAS and TORONTO, April 30, 2021 /PRNewswire/ -- NexPoint Hospitality Trust, ("NHT"¹), (TSX-V: NHT.U) announced today the release of NHT's financial results for the twelve months ended December 31, 2020.  All amounts are expressed in U.S. dollars.

Results for the twelve months ended December 31, 2020

• For the twelve months ended December 31, 2020, NHT reported Net Loss, FFO², Core FFO² and AFFO² of $(112.4) million, $(17.6) million, $(16.8) million and $(16.7) million, respectively, attributable to Unitholders.
• For the twelve months ended December 31, 2020, the portfolio averaged occupancy of 41.8%, Average Daily Rate ("ADR") of $110.14 and Revenue per Available Room of $47.16.
• For the twelve months ended December 31, 2020, the portfolio generated total revenues of $32.0 million, operating and general and administrative expenses of $27.7 million and NOI² of $4.3 million, generating an NOI Margin² of 13.4%.

Additional information on fiscal year 2020 financial and operational results can be found at www.sedar.com in our 2020 audited consolidated annual financial statements and management discussion and & analysis ("MD&A").

As of December 31, 2020, NHT had a working capital deficiency of $54.2 million, which was primarily the result of NHT's $35 million mezzanine facility that originally matured on January 8, 2020, which has been further extended by the lender until May 8, 2021. Additionally, due to the continuing impact of the COVID-19 virus on the hospitality industry in particular, management anticipates negative cash flow from operations for the first half of 2021.

Management is actively working towards addressing NHT's liquidity concerns, including the following: (i) negotiating with lenders to extend or otherwise restructure the terms of our loans and obtaining relief from covenants in the near term and (ii) converting payables of an affiliate into Class B Units of NHT's operating partnership.  In addition, subject to market conditions, NHT may seek to raise funds through new debt and equity financing, including sale-leaseback and ground lease arrangements. The particular features and quality of the underlying assets and the debt and equity market parameters existing at the time of financing may impact the ability to obtain financing.

While 2020 was not a positive year for the hospitality sector worldwide, NHT has seen a substantial increase in operational performance to date in 2021.  Average occupancy and ADR for the portfolio have increased to 54.9% and $93.16, respectively, for 2021 as of April 27, 2021, as compared to 41.8% and $110.14 for 2020.  Management believes the continued distribution of vaccines will create widespread demand for travel in the United States that will drive occupancy and ADR for the remainder of 2021.

About NHT

NexPoint Hospitality Trust is a publicly traded real estate investment trust, with its Units listed on the TSX Venture Exchange under the ticker NHT.U. and 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 11 branded properties sponsored by Marriott, Hilton and Intercontinental Hotels Group, located across the U.S. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P.

Forward-Looking Information

Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions.  In particular, the impact of the COVID-19 pandemic on NHT's business and potential new debt and equity financings constitute forward-looking statements.

Forward-looking information contained in this press release is based on certain key expectations and assumptions made by NHT, including, without limitation, expectations relating to cash flow from operations during the first half of 2021 and the ability of management to address NHT's liquidity concerns. Although the forward-looking information contained in this press release is based upon what the NHT's management believes to be reasonable assumptions, NHT cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in NHT's final prospectus dated March 27, 2019, NHT's final short form base shelf prospectus dated November 15, 2019 and Management's Discussion and Analysis dated April 30, 2021, which are available on SEDAR (www.sedar.com).

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to NHT. The forward-looking information is made as of the date of this press release and NHT assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.

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.

Contact: 

Jackie Graham
Investor Relations
[email protected]

Chief Financial Officer
Brian Mitts
[email protected]

Media Inquiries
[email protected]

¹ In this release, "we," "us," "our," and "NHT" each refer to NexPoint Hospitality Trust.
² FFO, Core FFO, AFFO, NOI and NOI Margin are non-IFRS measures.  See "Non-IFRS Financial Measures" in our MD&A for definitions of each of these measures and a reconciliation of these measures to Net Income.

SOURCE NexPoint Hospitality Trust

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