/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
HALIFAX, Sept. 10, 2015 /CNW/ - Holloway Lodging Corp. (TSX: HLC) ("Holloway") is pleased to announce that it has acquired the Days Inn® hotel located in Sydney, Nova Scotia. Holloway previously acquired non-performing first and second mortgages secured by the property and has now completed the foreclosure process to acquire the property. The purchase price for the property, consisting of the acquisition of the mortgages and all costs incurred in connection with the foreclosure, was $2.1 million or approximately $12,600 per room.
The Days Inn® hotel is located in Sydney, Nova Scotia, a city of approximately 31,000 people located on Cape Breton Island. The hotel was built in 1971 with an additional wing built in 1987. The property has 167 guestrooms, meeting rooms, banquet facilities, a pool and fitness center as well as several thousand square feet of office space which is currently vacant.
Holloway currently intends to close the property following the summer travel season and renovate and rebrand the property during the winter off-season. Holloway expects the renovation and rebranding to cost approximately $1.25 million and for the hotel to reopen in March or April of 2016. Holloway expects the total acquisition and renovation cost to represent a cap rate of 15-20% once the property ramps up.
ABOUT HOLLOWAY LODGING CORPORATION
Holloway is a real estate corporation 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 36 hotels with 4,134 rooms. Holloway's shares and debentures trade on the TSX under the symbols HLC, HLC.DB and HLC.DB.A.
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 and may include statements regarding Holloway's future financial position, business strategy, financial results, plans and objectives. 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 such statements will prove to be accurate. Some of these risks and uncertainties are described under "Risk Factors" in Holloway's annual information form for the year ended December 31, 2014 which is available on Holloway's profile on the SEDAR website 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: Michael Rapps, Chairman, at (416) 855-1925 or Jane Rafuse, Chief Financial Officer, at (902) 443-5101