An anonymous trustee reports

NEXPOINT HOSPITALITY TRUST ANNOUNCES SECOND QUARTER 2023 FINANCIAL RESULTS, UPDATE ON SALE OF DOUBLETREE PORTFOLIO, THE SALE PROCESS OF THE HIX NASHVILLE PORTFOLIO AND THE ISSUANCE OF DEFERRED UNITS

Nexpoint Hospitality Trust has released its financial results for the three and six months ended June 30, 2023. All amounts are expressed in U.S. dollars.

Additional information on 2023 financial and operational results can be found at SEDAR+ in its 2023 interim consolidated financial statements and management's discussion and analysis.

DoubleTree portfolio

On March 8, 2022, the real estate investment trust began the marketing process to sell its DoubleTree portfolio. As of March 31, 2023, the REIT has sold the Beaverton, Vancouver and Bend properties for a combined purchase price of $67.5-million. The REIT had executed purchase and sale agreements on the Tigard property for a purchase price of $24.5-million. However, the buyer defaulted on the agreement and relinquished the escrow to the REIT. The REIT is still actively marketing the Tigard property and hopes to complete the sale of the property before year-end. Additionally, the REIT has executed a purchase and sale agreement on the Olympia property for a purchase price of $12.75-million and closed on the transaction on June 29, 2023. The REIT used the proceeds from the Beaverton, Bend and Vancouver sales to pay off the DT portfolio debt. The proceeds from the remaining sales will be used to pay down other outstanding debt the REIT holds.

HIX Nashville portfolio

On Feb. 6, 2023, the REIT entered into an agreement with a broker to actively start marketing the Holiday Inn Express Nashville property. As previously disclosed, on Aug. 11, 2023, the REIT's subsidiary, NHT Nashville LLC, entered into an agreement for the purchase and sale of real property with NF V Acquisitions LLC for the sale of the Tennessee property for a purchase price of $120-million. Proceeds of the transaction will be used to repay indebtedness related to the Tennessee property and to potentially finance future acquisitions of real property.

Deferred units

The REIT announced today the planned issuance of deferred units to certain independent trustees of the REIT pursuant to the REIT's existing deferred unit plan. The deferred units will be granted in respect of accrued trustee fees up to the end of second quarter 2023 in the aggregate amount of $323,917. The deferred units will be granted and priced based upon the five-day volume-weighted average price of the REIT's units beginning on the first trading day after the issuance of this press release. Since the grant of deferred units will exceed the insider participation limits under the deferred unit plan, the grant will be subject to the adoption of an amended and restated deferred unit plan, which will be subject to approval by the TSX Venture Exchange and an affirmative vote of a simple majority of the votes cast by disinterested unitholders of the REIT, excluding the votes cast by such unitholders that are required to be excluded pursuant to TSX-V Policy 4.4 (Security Based Compensation) at the REIT's coming annual and special meeting of unitholders. Additionally, the grant of deferred units will be subject to ratification by unitholders at the meeting.

About Nexpoint Hospitality Trust

Nexpoint is a publicly traded real estate investment trust, with its units listed on the TSX-V under the ticker NHT.U. Nexpoint 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. Nexpoint owns nine branded properties sponsored by Marriott, Hilton, Hyatt and Intercontinental Hotels Group, located across the United States. Nexpoint is externally advised by Nexpoint Real Estate Advisors VI LP.