Holloway Lodging Corporation Reports 2013 Second Quarter Results and Declares Quarterly Dividend

August 12, 2013 - Halifax, Nova Scotia - Holloway Lodging Corporation (TSX: HLC) ("Holloway") today announced financial results for the three months ended June 30, 2013.  All amounts are in Canadian dollars unless otherwise indicated.  Readers should refer to Holloway's unaudited interim consolidated condensed financial statements as at June 30, 2013 and its management discussion and analysis which are available on Holloway's website at www.hlreit.com and on SEDAR at www.sedar.com.  

• Recorded increased same-store revenue, revenue per available room, operating income per available room, operating income margin, funds from operations and adjusted funds from operations for the three months ended June 30, 2013 compared to the three months ended June 30, 2012:

• Internalized hotel accounting functions previously performed by Holloway's external hotel manager, Pacrim Hospitality Services Inc. Holloway anticipates annual cost savings as a result of the internalization and greater control and operational flexibility over its business.
• Repurchased 681,600 shares under its normal course issuer bid at an average price of $3.55 per share.
• Extended the mortgage on the Holiday Inn Express® in Stellarton, NS for 5 years at a fixed rate of 4.80%.
• Sold its minority interest investment in the Super 8® Langley, BC for $0.1 million.

Subsequent to June 30, 2013 Holloway:

• Refinanced the mortgage on the Super 8® in Drayton Valley, AB at the lender's floating base interestrate, currently 4.35% for a 15 year term.

On August 9, 2013, the Board of Directors declared a quarterly dividend of $0.035 per share, representing an annual dividend of $0.14 per share.  The dividend will be payable on September 13, 2013 to shareholders of record on August 30, 2013.  

While Holloway remains cautiously optimistic about the performance of its hotels in the coming quarters, revenue growth is expected to moderate given the high level of operating results currently being generated in several western Canadian markets. By continuing to focus on operational efficiencies through operating
cost reductions and select capital projects, Holloway expects continued growth in net operating income.

Holloway also intends to further reduce its mortgage debt and repurchase shares as opportunities arise.

The following table provides a summary of the operating results for the three and six months ended June 30, 2013 and 2012.  

Holloway Lodging Corporation

Holloway 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. Holloway currently owns 18 hotels with 1,798 rooms.  Holloway's shares trade on the Toronto Stock Exchange under the symbol HLC.

For further information please contact Michael Rapps, Chairman, at (416) 855-1925 or Jane Rafuse, Chief Financial Officer, at (902) 404-3499.

This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to Holloway's future outlook and anticipated events or results and may include statements regarding Holloway's future financial position, business strategy, financial results, plans and objectives In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Forward looking-information is subject to certain factors, including risks and uncertainties, that could cause actual results to differ materially from what Holloway currently expects and there can be no assurance that such statements will prove to be accurate.  Some of these risks and uncertainties are described under "Risk Factors" in Holloway's Annual Information Form ("AIF"), dated March 11, 2013 which is available at www.sedar.com.  Holloway does not intend to update or revise any such forward-looking information should its assumptions and estimates change.

distributed by