HALIFAX, Feb. 4 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN, HLR.DB, HLR.DB.A) ("Holloway" or the "REIT") announced today that it has obtained commitments to refinance mortgages on its Radisson Suite Hotel Halifax and Holiday Inn Express Halifax properties in Nova Scotia (the "Properties").
The existing mortgages on the Properties mature on April 1, 2010. The refinancings will result in aggregate gross proceeds of approximately $10.5 million and shall be for a term of 5 years with a fixed interest rate of 6.6%. Proceeds from the refinancing commitments will be used to repay maturing mortgages of $8.9 million and the balance will be used for renovations at both properties.
The refinancings are scheduled to close on March 1, 2010, after which time Holloway will not have any material debt maturities until mid 2011.
Glenn Squires, Chief Executive Officer of the REIT said "After exploring a number of alternatives to refinance the existing mortgages on the Radisson Suite Hotel Halifax and Holiday Inn Express Halifax, we were pleased to proceed with the financing which will allow us to reinvest additional capital into two of our top performing hotels. The completion of the financing addresses our debt maturities for the next 17 months."
Holloway is a real estate investment trust 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 currently owns 21 hotels with 2,320 rooms. Holloway's units and convertible debentures trade on the Toronto Stock Exchange under the symbols HLR.UN, HLR.DB and HLR.DB.A, respectively.
This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to the REIT's future outlook and anticipated events or results and may include statements regarding the future financial position, property acquisition strategies and opportunities, business strategy, financial results and plans and objectives of the REIT. 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 the REIT 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 dated March 30, 2009 which is available at www.sedar.com. The REIT does not intend to update or revise any such forward-looking information should its assumptions and estimates change.
SOURCE Holloway Lodging Real Estate Investment Trust
For further information: For further information: Mr. Glenn Squires, Chief Executive Officer, (902) 404-3499; Mr. Michael Jackson, President and Chief Operating Officer, (902) 404-3499; Ms. Tracy Sherren, Chief Financial Officer, (902) 404-3499