Holloway Lodging Corp. of Halifax has announced that it has sold the Travelodge hotel in Sydney and its leasehold interest in the Super 8 hotel in Truro.
The sale price for the Travelodge Sydney was $5.1 million, representing a price per room of about $43,200, according to a news release. Before the revaluation of Holloway’s hotels in the first quarter of 2019, the value of the property on Holloway’s balance sheet was about $3.1 million, the release said.
The sale price for the leasehold interest in the Super 8 Truro was $3.0 million, representing a price per room of $60,000. Before the revaluation in the first quarter, the value of the property on Holloway’s balance sheet was about $2.5 million.
The purchasers of the properties were not disclosed.
Holloway received about $7.7 million after closing costs, the release said. The company expects to use the net sale proceeds to repay $4.8 million of its amortizing term loan and $2.9 million of its revolving credit facility. Holloway does not anticipate paying any tax on the sales of these properties.
Holloway is a real estate corporation focused on acquiring and operating select service hotels and managing hotels for third parties. It owns 23 hotels with 2,723 rooms. Holloway’s shares and debentures trade on the TSX under the symbols HLC and HLC.DB.