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HALIFAX, Aug. 5, 2009 (Canada NewsWire via COMTEX) -- Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN, HLR.DB, HLR.DB.A) ("Holloway" or the "REIT") today announced that it has entered into a binding agreement for the conditional sale of its Wingate by Wyndham property in Calgary, Alberta to an arm's length purchaser for $16.5 million, representing a gain to Holloway. Net proceeds are expected to be approximately $9.3 million.
The sale is conditional upon, among other things, the purchaser completing its due diligence investigations of the property and being satisfied with the results of such investigations by August 17, 2009. Assuming the satisfaction or waiver of all closing conditions, the transaction is expected to close in early September 2009.
Glenn Squires, Chief Executive Officer of the REIT said "We are pleased to be able to sell this property at a gain and will be actively considering opportunities to redeploy the proceeds in an accretive manner. This transaction, together with the recent suspension of distributions, will help Holloway strengthen its balance sheet and improve its capital position."
About Holloway
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. Holloway currently owns 22 hotels with 2,423 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 completion of the sale of Wingate by Wyndham Calgary property on the terms described in the press release, the anticipated net proceeds to the REIT from the transaction and the REIT's expected use of such net proceeds 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 annual information form dated March 30, 2009 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.
%SEDAR: 00023845E
SOURCE: Holloway Lodging Real Estate Investment Trust
Mr. Glenn Squires, Chief Executive Officer, Mr. Michael Jackson, President and Chief
Operating Officer or Ms. Tracy Sherren, Chief Financial Officer, (902) 404-3499
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