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HALIFAX, Nov. 2, 2007 (Canada NewsWire via COMTEX News Network) -- /NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
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.
%SEDAR: 00023845E
SOURCE: Holloway Lodging Real Estate Investment Trust
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
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