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HALIFAX, Oct. 7 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN, HLR.DB, HLR.DB.A) ("Holloway" or the "REIT") announces that it has closed its previously announced sale of the Wingate by Wyndham hotel in Calgary, Alberta. The hotel was sold for $16.5 million representing a gain of approximately $1.4 million. After repayment of the mortgage on the property, net cash proceeds are approximately $8.7 million. Based on the trailing twelve months earnings, the sale proceeds equate to a capitalization rate of 9.3%.
ABOUT HOLLOWAY LODGING REAL ESTATE INVESTMENT TRUST
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. With this sale, Holloway now 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; Mr. Michael Jackson, President and Chief Operating Officer; Ms. Tracy Sherren, Chief Financial Officer of the REIT, (902) 404-3499