Early Warning News Release For James Dondero

DALLAS and TORONTO, Dec. 31, 2019 /CNW/ -- As required by National Instrument 62-103 of the Canadian Securities Administrators, James Dondero announces that on December 27, 2019, NexPoint Real Estate Opportunities LLC ("NREO"), an entity indirectly controlled by James Dondero, redeemed 13,370,573 class B units of NHT Operating Partnership, LLC, the operating partnership of NexPoint Hospitality Trust (the "REIT"), and received 13,370,573 trust units of the REIT ("Units") as consideration (the "Redemption"). Following the Redemption, NREO distributed 13,370,573 Units as a dividend to NexPoint Strategic Opportunities Fund, an entity indirectly controlled by James Dondero (the "Dividend").

On December 24, 2019 The Dugaboy Investment Trust, an entity indirectly controlled by James Dondero, made a charitable donation of 1,500,000 Units to the Highland Dallas Foundation (the "Donation"). No consideration was paid in connection with the Donation.

Concurrently with the Donation, The Dugaboy Investment Trust granted to the Highland Dallas Foundation a right and an option (the "Put Option") to sell such Units and require The Dugaboy Investment Trust to purchase such Units at US$6.90 at any time for a period of seven years following the execution of the Put Option.

Prior to taking into account the Redemption, the Donation, the Put Option and the Dividend, James Dondero beneficially owned or exercised control or direction over 11,274,329 Units, representing a 74.51% ownership interest in the REIT.

Pursuant to section 1.8 of National Instrument 62-104, after taking into account the Redemption, the Donation, the Put Option and the Dividend, James Dondero beneficially owns or exercises control or direction over 24,644,902 Units, representing an 86.47% ownership interest in the REIT.

The Units held by the 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.

The head office of the REIT is located at:

NexPoint Hospitality Trust
333 Bay Street, Suite 3400
Toronto, Ontario
M5H 2S7

James Dondero's address is:

300 Crescent Court, Suite 700
Dallas, TX 75201

For further information or to obtain a copy of the early warning report, please contact:

Jackie Graham
Investor Relations
NexPoint Hospitality Trust
[email protected]
972-419-6213

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

Certain statements in this press release may constitute "forward-looking" information that involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. 

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.

Contact: 
Jackie Graham
Investor Relations
972-419-6213

SOURCE NexPoint Hospitality Trust