Investment Strategy

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NHT focusses on acquiring existing select-service and extended stay hotel properties, and on an opportunistic basis, upscale and midscale full-service properties. NHT aims to add value by including strategic capital expenditures and repositioning, brand and management changes, and revenue and expense management.

NHT provides Canadian investors with an opportunity to gain exposure to US, branded/select/extended stay and full service hospitality assets, while providing the potential of attractive dividend yield with significant total return.

We believe hospitality REITs are severely undersupplied. NHT is only one of two TSX Venture Exchange-listed hospitality REITs specializing in both select-service and extended-stay properties.

NHT intends to purchase properties that we believe are currently underperforming and will potentially increase in value. We believe the value of our investments will increase as a result of the following:

• Investments in capital improvements;
• Market-based recoveries;
• Brand repositioning;
• Revenue enhancements;
• Operational improvements;
• Identifying and correcting expense inefficiencies; and
• Exploiting excess land or underutilized spaces

NHT targets markets that have a stable, growing and reliable demand base, as well as real barriers to entry and limited present and future competitive new supply growth.

We choose properties in regions with strong economic attributes, such as job growth or transitionary travel and leisure. Under the Advisory Agreement, we are externally managed by NexPoint Real Estate Advisors VI LP (our “Adviser”), which will conduct substantially all of our operations and provide asset management for our real estate investments. We will not have any employees while the Advisory Agreement is in effect. The day-to-day property management will be handled by AimBridge Hospitality Holdings, LLC (“Aimbridge”).

NexPoint is a leading alternative investment platform. The NexPoint platform is comprised investment advisers NexPoint Advisors, L.P. and NexPoint Real Estate Advisors, L.P., a member Finra/SIPC broker dealer, NexPoint Securities, Inc., and a suite of related investment vehicles. The platform provides differentiated access to alternatives through a range of investment offerings, including publicly traded real estate investment trusts (REITs), Regulation D private placements, 1031 exchanges, closed-end funds, interval funds, and a business development company (BDC). NexPoint is based in Dallas, Texas.