/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
HALIFAX, Feb. 2, 2015 /CNW/ - Holloway Lodging Corp. (TSX: HLC) ("Holloway") is pleased to announce that it has acquired the Ramada® hotel located in Whitehorse, Yukon for a purchase price of $8.2 million. The purchase price implies a cap rate of 11.5% based on estimated net operating income for the first year following acquisition. Concurrent with the closing of the acquisition, the hotel has been rebranded as a Days Inn®.
The new Days Inn® hotel is located in Whitehorse, the capital of the Yukon Territory. The Whitehorse economy is driven principally by tourism, retail activity, government services and, to a lesser extent, mining. The Days Inn® was built in 1972 with additions in 1976 and 1988. The property has 99 rooms, a meeting room, banquet facility, fitness center as well as an on-site restaurant, lounge and nightclub.
Michael Rapps, Holloway's Chairman, stated "the acquisition of the Days Inn® Whitehorse is consistent with our strategy of acquiring select service properties in secondary Canadian markets. This acquisition was completed at an attractive cap rate, at a price substantially below the property's replacement cost and further diversifies Holloway outside of oil and gas markets. We expect this acquisition to be accretive to Holloway on both a cash flow and NAV basis."
ABOUT HOLLOWAY LODGING CORPORATION
Holloway is a real estate corporation 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 36 hotels with 4,250 rooms. Holloway's shares and debentures trade on the TSX under the symbols HLC, HLC.DB and HLC.DB.A.
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. 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 Holloway 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, 2013 which is available on Holloway's profile on the SEDAR website at www.sedar.com. Holloway does not intend to update or revise any such forward-looking information should its assumptions and estimates change.
SOURCE Holloway Lodging Corporation
For further information: please contact Michael Rapps, Chairman, at (416) 855-1925 or Jane Rafuse, Chief Financial Officer, at (902) 443-5101