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Holloway Lodging Corp. Announces Sale of Thunder Bay Hotels

HALIFAX — Holloway Lodging Corporation has sold its Travelodge hotel and Airlane Hotel & Conference Centre in Thunder Bay, Ont. for $15 million. 

The sale price represents a cap rate of approximately 10.3 per cent and a price per room of approximately $60,500. 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 $11.6 million. 

The company received approximately $13.5 million of proceeds after closing costs and the provision of a $1 million second mortgage secured by the properties. Holloway expects to use the net-sale proceeds to reduce amounts drawn under its revolving credit facility.

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