NexPoint Hospitality Trust Provides Update On Liquidity Solutions

DALLAS and TORONTO, March 30, 2021 /CNW/ -- NexPoint Hospitality Trust (TSX-V: NHT.U) ("NHT") today announced that a subsidiary of NHT has, between November 2020 and January 2021, issued convertible notes (the "Notes") in the aggregate principal amount of US$5.3 million (the "Liquidity Transactions") to an affiliate of NHT's external advisor.

The Notes bear interest at a rate of 2.25% per annum, and are repayable in trust units of NHT ("Trust Units") at the option of NHT in its sole discretion. The approval of the TSX Venture Exchange will be required prior to any amounts owing under the Notes being satisfied by the issuance of Trust Units. NHT used the proceeds of the Liquidity Transactions for general working capital purposes.  Management believes the Liquidity Transactions will further strengthen NHT's balance sheet and liquidity profile to better position itself as the hospitality industry continues to rebound from the impact of the COVID-19 pandemic.

The Liquidity Transactions constituted a related party transaction as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Liquidity Transactions were completed in reliance on (i) an available exemption from the formal valuation requirement of MI 61-101 provided in paragraph (a) of Section 5.5 of MI 61-101 and (ii) an available exemption from the minority shareholder requirement of MI 61-101 provided in paragraph (a) of Section 5.7(1) of MI 61-101. The fair market value of the Notes does not exceed and did not exceed at the time of issuance of any of the Notes 25% of NHT's market capitalization.

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 focused on acquiring, owning and operating well located hospitality properties in the United States that offer a high current yield and in many cases, that 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, reducing 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., specifically in the Seattle, Portland, Dallas, Nashville and St. Petersburg markets. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P. For more information, visit www.nexpointhospitality.com.

Cautionary Statement Regarding Forward-Looking Information

This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects NHT's current expectations regarding future events and in some cases can be identified by terms such as "will", "may", "expected" and other similar expressions. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond NHT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, risks related to the effect of the Liquidity Transactions on NHT's balance sheet and liquidity profile and the ability of the hospitality industry to recover from the impact of the COVID-19 pandemic. Information contained in forward-looking statements is based upon certain material assumptions. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect. NHT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

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:

Investor Relations
Jackie Graham
[e-mail]

Chief Financial Officer
Brian Mitts
[e-mail]

SOURCE NexPoint Hospitality Trust

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