Holloway Lodging Corporation and Royal Host Inc. announced that Holloway has completed its previously announced acquisition of Royal Host with an effective date of July 1, 2014. The acquisition is valued at approximately $157 million (on an enterprise value basis), including the payment by Holloway of a total of $16.4 million in cash and the issuance of 1,637,967 Holloway common shares for Royal Host's outstanding shares, and the assumption of certain indebtedness of Royal Host. Holloway funded $16 million of the cash purchase price from its existing credit facility and the remainder from its cash on hand.
The acquisition of Royal Host allowed Holloway to acquire 17 hotels across Canada, two freestanding single tenant properties, five parcels of developable land and the Canadian master franchise rights to the Travelodge and Thriftlodge hotel brands in Canada.
Holloway, headquartered in Halifax, Nova Scotia, 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.
Royal Host Inc., headquartered in Halifax, Nova Scotia, is a diversified hospitality company.
Borden Ladner Gervais LLP represented Holloway Lodging Corporation with a team led by Kent Kufeldt that included Michael Waters, Randy Morphy, Kara Beitel, Sienne Lam and Scott Howie.
Bennett Jones LLP represented Royal Host with a team led by Christian Gauthier that included Kris Hanc, Rami Chalabi, Tim Burns, Claire Webster, Derek Bell and Michael Paris.
McCullough O'Connor Irwin LLP represented the special committee of Royal Host Inc. with a team including David Gunasekera and James Beeby.