/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE
HALIFAX, Nov. 2 /CNW/ - Holloway Lodging Real Estate Investment Trust
(TSX: HLR.UN) ("Holloway" or the "REIT") announces that it has closed its
previously announced acquisition of the Holiday Inn Express hotel in Myrtle
Beach, South Carolina. The hotel was purchased for US$8.7 million including
the assumption of a US$4.6 million mortgage. The purchase price is below the
appraised value of US$9.1 million and replacement cost of US$10.5 million. The
property is located in the North Broadway Beach area and very close to the
Hard Rock Theme Park.
The hotel had an occupancy rate of 61% and an average daily rate of
approximately US$90 for the trailing twelve months as of June 30, 2007.
Management believes there is upside opportunity on rate and occupancy.
"We are excited about acquiring our first property in the United States
and believe that this acquisition 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.
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 and providing investors with stable distributions. With this
acquisition, Holloway now owns 22 hotels with 2,424 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. 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 the REIT's prospectus
dated June 13, 2007.
For further information:
For further information: Mr. Glenn Squires, Chief Executive Officer of
the REIT; Mr. Mike Jackson, President of the REIT; Ms. Tracy Sherren, Chief
Financial Officer of the REIT, (902) 457-1907