HALIFAX — Holloway Lodging Corporation has sold the Travelodge hotel located in Belleville, Ont. for $7 million.
The sale price represents a cap rate of approximately 4.2 per cent after adding back to net operating income and one-time severance and restructuring expenses incurred in 2016. The gain or loss on the sale of this property is expected to be nominal as the sale price, net of anticipated disposition costs, was approximately the same as the net book value of the property. Holloway will use the sale proceeds to repay the mortgage on the property and will hold the remaining sale proceeds as cash on hand.