CorePoint Lodging Inc. (CPLG) was up 10.96% at $12.25 at last check in premarket trading. CorePoint stock closed last trading session at $11.04, decreasing -1.43% or $0.16. CPLG stock fluctuated between $10.90 and $11.12 during trading. CPLG stock traded 89043.0 shares versus its 50-day average of 0.19 million shares.

Within the last year, CPLG stock has declined 134.89%, and its price has moved up just 0.27% within the last week. A total of 66.52% has been gained by CPLG stock for the last six months, and 16.70% has been gained over the last three months. CPLG stock has returned 60.47% since the beginning of the year. The CPLG stock is rising premarket following a business update and exploration of strategic alternatives.

What is the latest update from CPLG?

As the country’s only publicly traded lodging REIT that only owns midscale and upper midscale select-service hotels, CorePoint focuses on the midrange and upper mid-range hotels segment. In addition to its geographically diverse portfolio, CPLG also owns properties near employment centers, airports, and major routes. Most of CPLG’s properties are La Quinta hotels.

A business update was provided by CorePoint for the second quarter ended June 30, 2021.

• CPLG also announced that its Board of Directors has worked with its financial and legal advisors to explore strategic alternatives with the aim of increasing stockholder value.
• By positioning itself in suburbs, drive-to destinations, and leisure markets, CPLG has been able to continue improving the business performance of its portfolio of select-service hotels.
• CPLG’s disposition strategy has created substantial value through the execution of its non-core assets.
• CPLG’s board has determined that now is the proper time to explore strategic alternatives to fully maximize value for its stockholders, given that more than 80% of all 210 hotels identified by the company were non-core.
• The company continued to pursue its strategy of disposing of non-core hotels during the second quarter, selling 25 hotels.
• The CPLG strategy amounted to approximately $143 million in gross proceeds during the quarter, which results in the company owning 175 hotels by June 30, 2021.
• The CPLG has also signed contracts for 36 more hotels with qualified buyers that should generate approximately $220 million in gross proceeds.

How did CPLG use the proceeds?

According to CorePoint (CPLG), proceeds from the dispositions resulted in $125 million in repayments of CMBS debts during the quarter, resulting in $564 million in outstanding CMBS debt at June 30, 2021. In addition, CPLG paid down $5 million on its revolving credit facility, resulting in $75 million in outstanding debt as of June 30, 2021.

On August 5, 2021, CorePoint (CPLG) is in plans of releasing Q2 financial results. The Board of Directors of CPLG will carefully review all strategic alternatives to maximize stockholder value, including the possibility of a sale of the Company or other deals.