NexPoint Hospitality Trust and NexPoint Diversified Real Estate Trust Announce Closing Date for Going Private Transaction
On April 15, 2025, NexPoint Hospitality Trust (NHT) and NexPoint Diversified Real Estate Trust (NXDT) made an important announcement regarding their going private transaction. According to the press release, the expected closing date for the Transaction is April 17, 2025. This transaction involves the dissolution of NHT and the merger of its subsidiary entities with and into entities owned or controlled by NXDT.
Impact on NHT Unitholders
The press release states that the REIT’s trust units are expected to be delisted from the TSX Venture Exchange at the close of trading on April 22, 2025. This means that current NHT unitholders will no longer be able to buy or sell their units on the exchange once the delisting becomes effective. Instead, they will receive cash consideration of CAD $2.55 per unit in connection with the Transaction.
Impact on the Real Estate Market
The going private transaction between NHT and NXDT is expected to have a ripple effect on the real estate market. NHT is a real estate investment trust focused on the ownership, acquisition, and management of hotel properties in the United States. With the dissolution of NHT, its hotel properties will become part of NXDT’s portfolio. NXDT is a publicly traded real estate investment trust that invests in a diversified portfolio of real estate assets, including office, industrial, retail, and hospitality properties.
The merger of NHT’s hotel properties with NXDT could lead to increased competition in the hospitality sector. NXDT already owns and manages a significant number of hospitality properties, and the addition of NHT’s portfolio could make it an even more formidable player in the market. This could put pressure on other hotel owners and operators to improve their offerings and pricing to remain competitive.
Conclusion
The expected closing date for the going private transaction between NexPoint Hospitality Trust and NexPoint Diversified Real Estate Trust has been announced as April 17, 2025. Current NHT unitholders should be aware that their units will be delisted from the TSX Venture Exchange and they will receive cash consideration of CAD $2.55 per unit in connection with the Transaction. The merger of NHT’s hotel properties with NXDT is also expected to have a significant impact on the real estate market, particularly in the hospitality sector.
- NHT to be dissolved and its subsidiary entities merged with and into entities owned or controlled by NXDT
- Closing date for the Transaction is April 17, 2025
- NHT units expected to be delisted from TSX Venture Exchange on April 22, 2025
- NHT unitholders to receive cash consideration of CAD $2.55 per unit
- Impact on the real estate market, particularly in the hospitality sector
