HALIFAX — Holloway Lodging Corporation has sold its Super 8 and Travelodge hotels located in Timmins, Ont. for $11.4 million.
The sale price represents a cap rate of approximately 9.8 per cent and a price-per-room of approximately $70,000. 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 $8.2 million. As a result of the revaluation, the company anticipates recording a nominal loss on the sale related to closing costs.
Holloway received approximately $10 million of proceeds after closing costs and the provision of a $1-million second mortgage secured by the properties.