Holloway Lodging REIT closes on Radisson Suites sale

3 Feb, 2012

Holloway Lodging Real Estate Investment Trust has closed on the sale of the Radisson Suites Hotel located in Fort McMurray, Alberta. Holloway expects to record a gain on the sale of approximately $4.1 million. Holloway received net proceeds from the sale of approximately $11.1 million and a vendor take-back mortgage in the amount of $3.0 million. The vendor take-back mortgage has a one-year term and an interest rate of 10 percent. Holloway expects to repay the remaining $9.3 million of debt outstanding under this facility using the net sale proceeds. Michael Rapps, chairman of Holloway, said the REIT has made "significant progress over the last several months improving its balance sheet, reducing its debt by over $108 million since June 30, 2011."