/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE
HALIFAX, July 3, 2012 /CNW/ - Holloway Lodging Real Estate Investment
Trust (TSX: HLR.UN) ("Holloway") announces that it has sold the Super 8® hotel located in Three Hills, Alberta for $4.5 million. Holloway
expects to record a gain on the sale of approximately $1.0 million and
to generate net proceeds (after mortgage repayment and estimated
closing costs) of approximately $0.6 million. The hotel generated
negative cash flow after debt service.
Following repayment of the mortgage on this property, Holloway expects
to have approximately $110.5 million of debt outstanding and $3.7
million of cash on hand.
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. Holloway owns 17 hotels with 1,665 rooms.
Holloway's trust units trade on the TSX under the symbol HLR.UN.
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,
including, in particular, the anticipated gain on the sale of the Super
8® hotel in Three Hills, Alberta, the debt repayment referred to above and
the expected debt outstanding. 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 for the year ended December 31, 2011 which is
available on the REIT's profile on the SEDAR website 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:
Michael Rapps, Chairman, at (416) 855-1925 or Jane Rafuse, Chief Financial Officer, at (902) 443-5101.