Holloway Lodging REIT is an open-ended real estate investment trust focused on select and limited service hotels in secondary, tertiary and suburban markets.
Holloway’s units and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols HLR.UN and HLR.DB.
Holloway REIT was initially formed as a capital pool company (CPC) known as Holloway Capital Corporation (HCC) on November 17, 2005. It completed its initial public offering of its shares on February 17, 2006. HCC became a publicly listed company on the TSX-Venture Exchange on February 20, 2006.
On June 7, 2006, HCC undertook its qualifying transaction through the acquisition of the 50-room, Super 8 Motel in Truro, Nova Scotia for $4.6 million. Simultaneously, HCC was reorganized into Holloway Lodging REIT and undertook a private placement of 430,000 trust units at $2.00 per unit.
To strategically grow to become one of North America’s top-performing lodging REITs. We will continuously seek to improve our operating results by focusing on dominating the market segments in which we operate and maximizing product quality through a prudent capital reinvestment program. We will continue to strengthen our relationships with our key strategic business partners, unit holders, guests and employees.
Our goal is to be one of North America's top-performing lodging REITs and to grow our distributions to our unit holders. We will reach this goal by the following objectives:
- expanding our asset base of the REIT through accretive acquisitions and internal growth initiatives;
- generating stable cash distributions on a tax efficient basis;
- operating the top hotels in the segments and markets we serve;
- consistently ranking in the top ten percentile for every brand represented in our portfolio;
- enhancing the value of our assets to maximize long-term value through active management;
- attracting, training and retaining the industry’s best people; and
- constantly inspiring outstanding performance from our employees by encouraging creativity and innovation.
Holloway has identified and is leveraging four competitive differentiators to support the growth and success of our portfolio.
- Property management agreement with Pacrim Hospitality Services Inc. (PHSI) - Holloway’s hotels are externally managed by PHSI, one of Canada’s leading hotel management firms. It currently manages 60 hotels located across Canada and the United States, including many of the industry’s leading brands. More than proven expertise and success in hotel management, PHSI’s hotels provide further opportunities for expanding Holloway’s portfolio. Through their extensive proprietary management systems and tools, PHSI’s hotels have consistently outpaced competitors in key performance measures such as customer satisfaction rates and RevPAR.
- Exclusive relationship with a hotel development company, Winport Developments Limited Partnership - Holloway is unique among Canadian lodging REITs because we have an exclusive relationship with a hotel development company, Winport. This gives us exclusive access to a pipeline of hotels we can purchase once operations have stabilized. There are several advantages to this partnership for Holloway and our unit holders. It eliminates construction risk and allows for greater ease of purchase because we are dealing with only one property owner. Furthermore, for hotels where we provide mezzanine financing, Holloway can acquire them at 95% of fair market value at the time of purchase, resulting in a premium for our investors. For all other Winport-developed hotels, Holloway has the first right of offer. Additionally, all Winport hotels are managed by PHSI, meaning relatively easy integration into Holloway.
- Extensive industry alliances - Holloway has built strong relationships with North America’s leading hotel franchisors, such as InterContinental Hotels Group, Carlson Hotels Worldwide, Wyndham Hotels & Resorts and Superior Lodging Corporation (the Canadian master developer of Super 8 Motels and Wingate Inns). We have forged relationships with national real estate firms, large financial institutions and feasibility study experts. We network extensively with owners of small portfolios and individual properties, which allow us to identify acquisition opportunities prior to the potential sale becoming known to the broader market. These relationships give us access to reliable market data and insights. They also provide Holloway with expansion opportunities through access to new developments and acquisitions.
- Electronic marketing and reservation expertise through Intergy - Through our management agreement with PHSI, Holloway has access to the marketing expertise of Intergy, an e-marketing and reservations company specializing in driving incremental room reservations. Currently, Intergy averages incremental sales ranging from 3-10 occupancy points across a majority of PHSI managed hotels. Working with Intergy, Holloway’s hotels will develop and execute successful online marketing campaigns that will give them a competitive advantage in this vital medium.