On May 11, 2017, Condor Hospitality Limited Partnership
(“CHLP“), the operating partnership of Condor
Hospitality Trust, Inc. (the “Company“), entered into a
First Amendment to Credit Agreement among CHLP, as borrower, the
Company and the subsidiary guarantors party thereto, as
guarantors, KeyBank National Association and the other lenders
party thereto, as lenders, and KeyBank National Association, as
administrative agent (the “First Amendment“). The First
Amendment amends the Credit Agreement dated as of March 1, 2017
(the “Credit Agreement“). The Credit Agreement is
described in the Company’s Current Report on Form 8-K dated
March 1, 2017 and incorporated herein by reference.

The First Amendment increases the committed senior secured
revolving credit facility (the “Facility“) under the
Credit Agreement from $90 million to $150 million. The Credit
Agreement includes an accordion feature that allows the Facility
to be increased to $400 million, subject to certain conditions,
including obtaining additional commitments from any one or more
lenders.

The Facility is secured by first priority liens and security
interests on the hotel properties in a collateral pool and the
tangible and intangible personal property used in connection with
such hotel properties. The First Amendment requires that the
hotel properties added to the collateral pool continue to be
secured with first priority liens and security interests until
the first time there are 12 Tier I properties in the collateral
pool (Tier I properties generally include those branded by
Marriott, Starwood Hotels, Hilton, Hyatt and IHG). Thereafter,
the First Amendment provides that hotel properties added to the
collateral pool will be secured by a pledge of the equity
interests in the subsidiaries of CHLP that own or lease such
hotel properties.

The First Amendment also deletes the debt service coverage ratio
covenant in the Credit Agreement and prohibits the Company from
increasing its common stock dividend rate prior to September 30,
2017.

Some of the lenders in the Credit Agreement and / or their
affiliates have other business relationships with the Company
involving the provision of financial and bank-related services,
including cash management and treasury services, and have
participated in the Company’s prior debt financings and sales of
securities.

The foregoing summary of the First Amendment does not purport to
be complete and is qualified in its entirety by reference to the
First Amendment, a copy of which is attached as Exhibit 10.1 and
incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

The information reported under Item 1.01 above is incorporated
herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.