Holloway Lodging announces completion of conversion from REIT to corporate structure effective December 31, 2012

/NOT FOR DISTRIBUTION ON UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

HALIFAX, Dec. 31, 2012 /CNW/ - Holloway Lodging Corporation (TSX: HLC) ("Holloway" or the "Corporation") announced today the successful completion of the previously announced conversion of Holloway Lodging Real Estate Investment Trust (the "REIT") from an income trust to a corporation on December 31, 2012 pursuant to a plan of arrangement (the "Arrangement"). The former trustees and senior management of the REIT are now the directors and senior management of the Corporation.

Under the Arrangement, each unit of the REIT was exchanged for one common share of Holloway. The REIT Units will be de-listed from the Toronto Stock Exchange (the "TSX") today and the Holloway common shares will be listed for trading on the TSX under the trading symbol "HLC" effective January 1, 2013. It is expected that the Corporation's business, capital structure and dividend policy will remain consistent with those of the REIT.

ABOUT HOLLOWAY LODGING CORPORATION
Holloway is a real estate company focused on acquiring, owning and operating select and limited service lodging properties and a small complement of full service hotels primarily in secondary, tertiary and suburban markets. Holloway owns 18 hotels with 1,790 rooms.

Forward-looking Information

This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to Holloway's future outlook and anticipated events or results.  Statements regarding Holloway's business, capital structure and dividend policy are forward-looking statements.  In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward looking-information is subject to certain factors, including risks and uncertainties, that could cause actual results to differ materially from what Holloway currently expects and there can be no assurance that statements containing forward-looking information will prove to be accurate. Some of these risks and uncertainties are described under "Risk Factors" in Holloway's Annual Information Form dated March 14, 2012 which is available at www.sedar.com. Holloway does not intend to update or revise any such forward-looking information should its assumptions and estimates change.

SOURCE: Holloway Lodging Corporation

For further information:

please contact Michael Rapps, Chairman, at (416) 855-1925 or Jane Rafuse, Chief Financial Officer, at (902) 443-5101.