DALLAS and TORONTO, Jan. 12,
2021 /CNW/ -- NexPoint Hospitality Trust (TSX-V: NHT.U)
("NHT" or the "REIT") announced today that KPMG LLP
("KPMG") resigned as auditor of NHT, effective January 11, 2021. KPMG advised that it no longer
met the independence requirements under applicable professional
standards and, as a result, could no longer serve as NHT's auditor.
NHT notes it believes there are no disagreements between management
and KPMG related to NHT's accounting or financial statements.
The REIT has commenced a process to retain a successor auditor
to conduct an audit for the year ended December 31, 2020. However, management notes that
under the current circumstances it may be difficult to complete an
audit for the year ended December 31,
2020 by the statutory filing deadline of April 30, 2021.
In light of the continuing impact caused by COVID-19 to the
hospitality sector in general and NHT specifically, the board and
management of NHT continue to review strategic options to
recapitalize NHT, sell assets, take NHT private, inject capital
from NHT's sponsor or affiliates or other solutions to continue
long-term operations.
In accordance with National Instrument 51-102 – Continuous
Disclosure Obligations ("NI 51-102"), the REIT will file
a Notice of Change of Auditor within 14 days of the date of
resignation. To the REIT's knowledge, there were no "reportable
events", as such term is defined in NI 51-102, between the REIT and
KPMG.
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 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. In particular, there can be no assurance that a
successor auditor will be appointed and, if a successor auditor is
appointed, that the audit for the year ended December 31, 2020 can be completed in a timely
manner. 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
972-419-6213
JGraham@nexpointadvisors.com
Chief Financial Officer
Brian Mitts
972-419-2559
BMitts@nexpointadvisors.com
SOURCE NexPoint Hospitality Trust