THUNDER BAY – Business – A long-time Thunder Bay icon, the Airlane Hotel and Conference Centre has changed ownership.
Holloway Lodging Corporation (HLC.TO) (TSX:HLC.DB) (“Holloway”) has announced that it has sold its Travelodge® hotel and Airlane Hotel & Conference Centre located in Thunder Bay, ON .
The sale price for the hotels was $15.0 million representing a cap rate of approximately 10.3% 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 .
Holloway received approximately $13.5 million of proceeds after closing costs and the provision of a $1.0 million second mortgage secured by the properties. Holloway expects to use the net sale proceeds to reduce amounts drawn under its revolving credit facility. Holloway does not expect to pay any tax on the sale.
ABOUT HOLLOWAY LODGING CORPORATION
Holloway is a real estate corporation focused on acquiring, adding value to and operating select service hotels and managing hotels for third parties. Holloway owns 21 hotels with 2,475 rooms. Holloway’s shares and debentures trade on the TSX under the symbols HLC and HLC.DB.