Holloway Lodging REIT Completes Financing and Property Acquisitions

On August 1, 2006, Holloway Lodging Real Estate Investment Trust, a newly formed REIT focused on acquiring and improving a growing portfolio of lodging properties with stable cash distributions, completed a $72 million private placement of units and convertible debentures. The private placement followed the June 2006 “qualifying transaction” involving the conversion of Holloway Capital Corporation (a TSXV capital pool company) into the REIT, a private placement of units by the REIT and the REIT's concurrent acquisition of its initial hotel property.

In August and September 2006, the REIT acquired a total of six hotel properties in Nova Scotia, New Brunswick and Alberta for an aggregate purchase price of approximately $77 million.

The REIT was represented by Goodmans LLP in connection with all of the foregoing transactions with a team led by Stephen Pincus and Michael Partridge and including Gesta Abols and Cristina Alaimo (corporate/securities), Maureen Berry (tax) and Ira Barkin (real estate).

Canaccord Adams, which acted as the REIT's exclusive agent on the private placement, was represented by Lawrence Wilder and Jay King (securities) and Gary Steinhart (business law) of Cassels Brock & Blackwell LLP.

Richmond Bayes (securities), Carmele Peter (tax) and Nigel Thompson (corporate) of Aikins, MacAulay & Thorvaldson LLP represented Holloway Capital Corporation in connection with its initial public offering as a capital pool company and the qualifying transaction and also acted as Manitoba counsel to the REIT.

On the various hotel acquisitions, the REIT was also represented by Garth Anderson and Lindsay Keele of Blake, Cassels & Graydon LLP in Alberta and Larry Freeman and Jennifer Glennie of McInnes Cooper in Nova Scotia and New Brunswick. Counsel to the various vendors of the hotels included Gary Cochrane and Joe Pfaefflin of Fraser Milner Casgrain LLP in Calgary and Doug Mathews of Stewart McKelvey in Nova Scotia and New Brunswick.