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  • Adds 575 rooms across 3 strategic locations; expands Permian Basin
    proprietary lodging network to 15 sites with over 7,850 average
    available rooms
  • Transaction closed today; expected to be accretive within the first
  • Full turnkey lodging and value-added hospitality services offered
    starting immediately

THE WOODLANDS, Texas–(BUSINESS WIRE)–Target Hospitality Corp. (“Target Hospitality” or the “Company”)
(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

Cautionary Statement Regarding Forward Looking Statements

Certain statements made in this press release are “forward looking
statements” within the meaning of the “safe harbor” provisions of the
United States Private Securities Litigation Reform Act of 1995. When
used in this press release, the words “estimates,” “projected,”
“expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “may,” “will,” “should,” “future,” “propose” and variations of
these words or similar expressions (or the negative versions of such
words or expressions) are intended to identify forward-looking
statements. These forward-looking statements are not guarantees of
future performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside our control, that could cause actual
results or outcomes to differ materially from those discussed in the
forward-looking statements. Important factors, among others, that may
affect actual results or outcomes include: the inability to recognize
the anticipated benefits of the transaction; unexpected costs or
liabilities related to the transaction; problems that may arise in
successful integrating the assets; operational, economic, political and
regulatory risks; our ability to effectively compete in the specialty
rental accommodations and hospitality services industry; effective
management of our communities; changes in demand within a number of key
industry end-markets and geographic regions; and our future operating
results fluctuating, failing to match performance or to meet
expectations. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.

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.


Narinder Sahai
Tel: 832-702-8009
Email: Narinder

Rodny Nacier
Tel: 832-702-8009
Email: Rodny

Jason Chudoba
Email: Jason

Elyse Gentile
Tel: 646-677-1823
Email: Elyse