Holloway Lodging Corporation completes C$157 million acquisition of Royal Host Inc.

Date Closed: 7/02/2014

Value: C$157 million

On July 2, 2014, Holloway Lodging Corporation (Holloway) and Royal Host Inc. (Royal Host) announced that Holloway had completed its previously announced acquisition of Royal Host (the Acquisition) with an effective date of July 1, 2014. As consideration for Royal Host's outstanding shares, Holloway paid a total of $16.4 million in cash and issued 1,637,967 Holloway common shares. Holloway funded $16.0 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(R) and Thriftlodge(R) 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.

BLG represented Holloway Lodging Corporation with a team led by Kent Kufeldt that included Michael Waters, Randy Morphy, Kara Beitel, Sienne Lam and Scott Howie.