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
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