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HALIFAX, May 26 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN, HLR.DB, HLR.DB.A) ("Holloway" or the "REIT") today announced that its proposed conversion from an income trust structure to a corporation (the "Conversion") was not approved by the requisite number of unitholders who voted at the REIT's annual and special meeting held on May 25, 2010 (the "Meeting").
Given that the Conversion did not receive the required unitholder approval, the related resolutions in respect of the proposed new option plan and shareholder rights plan of the post-conversion corporate entity were withdrawn. Further, the special meeting of holders of the REIT's 6.5% convertible unsecured subordinated debentures, to be held following the Meeting to allow the holders of such debentures to vote on a special resolution relating to the Conversion, did not proceed.
Given the results of the Meeting, the REIT may not be able to implement the Conversion on the terms and conditions set out in the management information circular mailed to unitholders in connection with the Meeting. However, Holloway continues to believe that the proposed Conversion is fair to unitholders and in the best interests of the REIT and intends to continue to pursue the Conversion transaction. The REIT may consider convening further special meetings of unitholders and debentureholders prior to December 31, 2010 for the purposes of obtaining approvals in connection with the Conversion.
The REIT is also pleased to announce that at the Meeting Amy Erixon was elected to join the continuing trustees as a member of the REIT's board. Amy is a senior real estate executive with extensive cross border expertise, broad institutional relationships and proven investment, relationship management, start-up and turn-around skills. She is currently the President and Chief Executive Officer of IG Realty Investments ("IGRI"), the successor organization to Giffels Management Limited ("Giffels"), where she served as Chief Operating Officer. At Giffels, Amy raised more than $400 million in new institutional capital and grew Giffels from a turnkey development manager to a full service investment firm. Prior to Amy's position at Giffels, she held the position of International Director with LaSalle Investment Management. As part of a 10-person global executive team, and a member of the North American Investment Committee, she launched and managed numerous investment mandates across the product spectrum during her 12 years with the firm. This included new business enterprises in Mexico and Canada. Prior to LaSalle, Amy held the position of Regional Partner for two land development companies. Her responsibilities included building regional enterprises to acquire $100 million of land assets, completion of zoning, securing more than 10 Million square feet of entitlements, and development of approximately 1 million square feet of industrial and office product. Amy holds a Masters in City Planning, Real Estate Development from Massachusetts Institute of Technology (M.I.T.) and a Bachelor of Science in Urban and Regional Planning, also from M.I.T. She currently serves on the Board of Directors of the Chicago Girl Scout Council and of IGRI.
Notice to Readers
Certain forward-looking statements are made in this news release, within the meaning of applicable Canadian securities laws. Forward-looking statements used in this new release may contain words such as "may", "will", "should", "believe", "expect", "plan", "intend", "continue", "future", or the negative of these terms or other similar expressions. Forward-looking statements in this news release, include, without limitation, statements regarding possible future action by the REIT, the Conversion and the receipt of consents and approvals, including the approval of unitholders required to effect the Conversion and the approval of debentureholders as a condition to the Conversion. These statements reflect Holloway's current expectations regarding future events and are based on information currently available to management, but involve known and unknown risks, uncertainties and other factors which may cause the pursuit or outcome of the Conversion or the actual results, performance or achievements of Holloway to be materially different from any future results, performance or achievements anticipated, expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, legislative and regulatory developments, legal developments, the occurrence of weather-related and other natural catastrophes, changes in tax laws, inability of the parties to obtain required consents, permits or approvals, including court approval of the Conversion and the approval by unitholders of the resolution approving the Conversion, failure to complete and realize anticipated benefits of the Conversion, and those other risks, factors and uncertainties detailed in the section entitled "Risks and Uncertainties" in the REIT's Management's Discussion and Analysis for the year ended December 31, 2009 and "Risk Factors" in the REIT's Annual Information Form for the year ended December 31, 2009 which are available on the REIT's profile on the SEDAR website at www.sedar.com. The preceding list is not an exhaustive list of possible factors. These and other factors should be considered carefully and readers are cautioned that forward-looking statements should not be read as guarantees of future performance, outcomes or results, should not be unduly relied upon, and will not necessarily be accurate indications of whether or not such results will be achieved. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to the REIT. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include: the completion of the Conversion and the realization of the anticipated benefits of the Conversion. Readers are cautioned that the preceding list of material factors or assumptions is not exhaustive. Although the forward-looking statements contained in this news release are based upon what management believes are reasonable assumptions, the REIT cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and should not be relied upon as representing the REIT's views as of any date subsequent to the date of this news release. The REIT undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable law.
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.
SOURCE Holloway Lodging Real Estate Investment Trust
For further information: For further information: Mr. Glenn Squires, Chief Executive Officer of the REIT, (902) 404-3499; Ms. Tracy Sherren, Chief Financial Officer of the REIT, (902) 404-3499