Holloway Lodging Corp. acquired the Days Inn hotel located in Sydney, Nova Scotia, Canada. Holloway previously acquired non-performing first and second mortgages secured by the property and now completed the foreclosure process to acquire the property. The purchase price for the property, consisting of the acquisition of the mortgages and all costs incurred in connection with the foreclosure, was $2.1 million or approximately $12,600 per room.
The Days Inn hotel is located in Sydney, Nova Scotia, a city of approximately 31,000 people located on Cape Breton Island. The hotel was built in 1971 with an additional wing built in 1987. The property has 167 guestrooms, meeting rooms, banquet facilities, a pool and fitness center as well as several thousand square feet of office space which is currently vacant.
Holloway currently intends to close the property following the summer travel season and renovate and rebrand the property during the winter off-season. Holloway expects the renovation and rebranding to cost approximately $1.25 million and for the hotel to reopen in March or April of 2016. Holloway expects the total acquisition and renovation cost to represent a cap rate of 15-20% once the property ramps up.