THE WOODLANDS, Texas--(BUSINESS WIRE)--Target Hospitality Corp. (NASDAQ: TH), the largest provider of vertically-integrated specialty rental accommodations with premium catering and value-added hospitality services in the U.S., today announced the acquisition of three communities in the Delaware Basin – a high-growth area within the Permian Basin – from Superior Lodging. This transaction advances the Company’s strategy of enhancing the breadth and depth of its lodging network, adding 575 rooms across the Permian Basin. The transaction closed in June 2019 and is expected to be accretive to the Company’s earnings within the first year.
Two of the three communities are located in Orla, Texas and add 395 rooms to the Company’s Permian Basin lodging network. Target Hospitality has managed these communities since mid-2018, providing it with an intimate understanding of each property’s operations. The third community has 180 rooms and is located in Kermit, Texas.
“This acquisition delivers on our commitment to continue to grow our proprietary network and exclusivity zones through organic and inorganic opportunities,” said Brad Archer, President and Chief Executive Officer of Target Hospitality. “Our customers value the scale and flexibility of our network of communities, and these value-enhancing additions to our lodging network create an even larger platform for our customers to utilize. Accordingly, we expect these communities to drive continued growth with highly visible, recurring revenue while further enhancing our value proposition to our customers,” concluded Mr. Archer.
The newly acquired communities, which are available to Target Hospitality clients immediately, are located at the epicenter of where major oil and gas companies are investing considerable time and resources. With added scale in this highly desirable and productive area of the Permian Basin, Target Hospitality is even better positioned to capitalize on the strong demand for fully integrated lodging, hospitality and culinary solutions.
Each community features single-occupancy accommodations with private bathrooms, a state-of-the-art commercial kitchen with dining facility, on-premises laundry, and indoor and outdoor recreational areas. They will also include Target Hospitality’s full suite of services, including 24-hour culinary services, housekeeping, security, and a code of conduct program that includes a “zero tolerance” drug and alcohol policy.
Troy Schrenk, Chief Commercial Officer of Target Hospitality, added, “Acquiring these communities exemplifies the benefits of our customer-centric growth strategy, as we continue to scale across the Permian to provide our mission-critical lodging and hospitality services to customers across their most active development areas. Our clients have already shown great satisfaction with our communities throughout the Permian Basin. We look forward to integrating our customer-centric services across these locations as we continue to work to serve our customers in the high-growth Delaware Basin.”
To see a complete list of Target Hospitality’s communities, visit www.targethospitality.com.
About Target Hospitality
Target Hospitality is the largest provider of vertically integrated specialty rental accommodations and value-added hospitality services in the United States. Target Hospitality builds, owns and operates customized housing communities for a range of end users, and offers a full suite of cost-effective hospitality solutions including culinary, catering, concierge, laundry and security services as well as recreational facilities. Target Hospitality primarily serves the energy and government sectors and its growing network of communities is designed to maximize workforce productivity and satisfaction.
