Sale of Timmins hotels
Holloway Lodging Corporation (“Holloway”) is a real estate corporation focused on acquiring, adding value to and operating select service hotels and managing hotels for third parties. Holloway owns 25 hotels with 2,890 rooms.
Holloway is pleased to announce that it has sold its Super 8® and Travelodge® hotels located in Timmins, ON.
The sale price for the hotels was $11.4 million representing a cap rate of approximately 9.8% and a price per room of approximately $70,000. Prior to the revaluation of Holloway’s hotels in the first quarter of 2019, the value of these properties on Holloway’s balance sheet was approximately $8.2 million. As a result of the revaluation, Holloway anticipates recording a nominal loss on the sale related to closing costs. Holloway does not anticipate paying tax on the sale of these properties.
Holloway received approximately $10.0 million of proceeds after closing costs and the provision of a $1.0 million second mortgage secured by the properties. Holloway expects to use the net sale proceeds to reduce amounts drawn under its revolving credit facility.