EARLY WARNING REPORT ISSUED PURSUANT TO NATIONAL INSTRUMENT 62-103

DALLAS and TORONTO, May 11, 2023 /CNW/ -- NexPoint Hospitality Trust ("NHT" or the "REIT") (TSX-V: NHT.U) announced today that on May 10, 2023, NHT Holdco, LLC ("Holdco"), an entity controlled by James Dondero, Chief Executive Officer of the REIT, transferred 689,962 units in the capital of the REIT ("Units") to Highland Capital Management L.P. ("Highland"). This transfer was effected pursuant to a Limited Liability Company Agreement of Holdco, whereby Highland (who held 689,962 membership units in Holdco) was granted the right to withdraw from Holdco and Holdco was obligated to distribute to Highland its allocable share of Holdco's assets pursuant to an in kind distribution (the "Disposition"). No consideration was paid in connection with the Disposition.

Prior to the Disposition, James Dondero, together with the persons and entities which are directly or indirectly controlled by him, beneficially owned or exercised control or direction over 21,860,500 Units, representing an approximate 74.48% ownership interest in the REIT (73.96%, 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 Disposition, James Dondero, together with the persons and entities which are directly or indirectly controlled by him, beneficially owns or exercises control or direction over 21,170,538 Units, representing an approximate 72.13% ownership interest in the REIT (71.62%, assuming conversion of all outstanding Class B OP Units). James Dondero's total decrease in beneficial ownership in the capital of the REIT, due to the Disposition, is approximately 2.35%.

The Units held by James Dondero are being held 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.

This news release is being issued under the early warning provisions of Canadian securities legislation. A copy of the Early Warning Report to be filed by James Dondero in connection with the transactions described above will be available on the REIT's SEDAR profile at www.sedar.com.

The head office of the REIT is located at 333 Bay Street, Suite 3400, Toronto, Ontario, Canada M5H 2S7. James 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:

Brian Mitts Chief Financial Officer [e-mail]

Kristen Thomas Investor Relations [e-mail]

About NexPoint Hospitality Trust

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. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P. For more information, visit www.nht.nexpoint.com.

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.

For Further Information:
Kristen Thomas
Investor Relations
[e-mail]

Brian Mitts
Chief Financial Officer
214.276.6300
[e-mail]

Media Inquiries
[e-mail]

SOURCE NexPoint Hospitality Trust

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