HALIFAX, Feb. 1 /CNW/ - Holloway Lodging Real Estate Investment Trust
(TSX: HLR.UN, HLR.DB, HLR.DB.A) ("Holloway" or the "REIT") announced today
that, as previously announced, Pacrim Hospitality Services Inc. ("Pacrim") has
assumed management of ten of the REIT's hotel properties located in northern
Alberta and British Columbia (the "Pomeroy Hotels"). Pacrim currently manages
49 hotel properties across Canada and the United States, including all of the
REIT's other hotel properties.
Under the terms of the amended hotel management agreement between the
REIT and Pacrim, the base management fee payable to Pacrim for the Pomeroy
Hotels will be significantly lower than the base management fee payable with
respect to other hotels managed by Pacrim until the REIT generates adjusted
funds from operations that exceed certain targets.
"This is a positive development for the REIT that is immediately
accretive to distributable income on a per unit basis to our unitholders,"
commented Glenn Squires, Chief Executive Officer of the REIT. "Pacrim is an
experienced hotel management company with significant operations and a proven
track record of success. We are confident that the Pomeroy hotels will benefit
from Pacrim's management."
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. Holloway
currently 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. 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. Particularly, statements regarding the assignment
of the Pomeroy management agreement and the expected benefits to the REIT
associated with such assignment 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 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
prospectus dated June 13, 2007 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.
For further information:
For further information: Mr. Glenn Squires, Chief Executive Officer, Mr.
Michael Jackson, President and Chief Operating Officer, or Ms. Tracy Sherren,
Chief Financial Officer, (902) 457-1907