/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
HALIFAX, April 18 /CNW/ - Holloway Lodging Real Estate Investment Trust
(TSXV: HLR.UN) ("Holloway" or the "REIT") announces that it has closed its
previously announced acquisition of the Super 8 Motel in Three Hills, Alberta.
The Super 8 Motel was purchased for $10.0 million, including the issuance
of $2.0 million worth of trust units of the REIT at a price of $4.94 per unit
to the vendor of the property in partial consideration of the purchase price.
Holloway expects to refinance $5,000,000 of the acquisition cost through
mortgage debt financing.
The hotel had an occupancy rate of 74.8% and an average daily rate of
approximately $75 for 2006.
"Management is excited about acquiring the Super 8 in Three Hills and
believes that it is consistent with our goal of generating stable cash
distributions and expanding Holloway's asset base through accretive
acquisitions and internal growth initiatives" said Mr. Glenn Squires,
Holloway's Chief Executive Officer.
This press release contains forward-looking information within the
meaning of applicable securities laws. Forward-looking information may relate
to the Trust'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 Trust. Particularly, statements regarding the
Trust's future operating results, property acquisition strategies and
opportunities and economic performance 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 the Trust 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 the management information circular of Holloway Capital
Corporation dated May 4, 2006.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
For further information:
For further information: Mr. Glenn Squires, Chief Executive Officer of
the REIT, (902) 457-1907