Holloway Lodging Corp. has completed the acquisition of the Days Inn hotel located in Whitecourt, Alberta, for a purchase price of $8.9 million. The 79-room hotel was built in 2007 and includes meeting space and a fitness center.
The purchase price implies a cap rate in excess of 11.0 percent based on estimated first year net operating income. Holloway paid cash on closing of $3.0 million and funded the remainder of the purchase price by way of a $5.0 million first mortgage and a $0.9 million vendor take-back mortgage.
Holloway also owns a Super 8 hotel in Whitecourt, which is located 180 kilometres northwest of Edmonton and its economy is driven by the forestry and oil and natural gas industries, particularly the emerging Duvernay shale play.
Holloway is a real estate corporation focused on acquiring, owning and operating select and limited service lodging properties and a small complement of full service hotels primarily in secondary, tertiary and suburban markets. Holloway owns 18 hotels with 1,797 rooms.