Holloway Lodging Corp. and Royal Host Inc. announce successful amendment of the Royal Host Inc. debentures

/NOT FOR DISTRIBUTION ON U.S. WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, July 29, 2014 /CNW/ - Holloway Lodging Corporation ("Holloway") (TSX: HLC) and its wholly-owned subsidiary, Royal Host Inc., ("Royal Host") (TSX: RYL.DB.B RYL.DB.C RYL.DB.D) are pleased to announce that the holders of Royal Host's Series B 6.25% convertible unsecured debentures due October 31, 2020 (the "Series B Debentures"), Series C 7.50% convertible unsecured debentures due September 30, 2018 (the "Series C Debentures") and Series D 6.25% convertible unsecured debentures due June 30, 2019 (the "Series D Debentures" and, together with the Series B Debentures and the Series C Debentures, the "Debentures") today approved certain amendments to the terms of the Debentures.

In particular, the debentureholders approved (i) the assumption of the Debentures by Holloway, (ii) an amendment to the manner in which the common share interest payment feature in the trust indenture operates, and (iii) the combination of the Series B Debentures and Series D Debentures into a single class of debentures (the "Debenture Combination"). The debentureholders approved additional amendments intended to provide Holloway with additional flexibility to carry out its business plan and maximize the value of the enterprise for all stakeholders. A description of the amendments is set out in Royal Host's joint management information circular dated July 2, 2014 and available at www.sedar.com.

All of the amendments proposed (other than the Debenture Combination) will be effective on the signing of an Amended and Restated Trust Indenture by the Company and Computershare Trust Company of Canada, which is anticipated to occur within several business days. At that time, the Debentures will cease to be liabilities of Royal Host and, instead, will be liabilities of Holloway. The Debenture Combination is anticipated to be effective on or about October 30, 2014.

The Debentures are expected to begin trading on the Toronto Stock Exchange under the new symbols "HLC.DB.B", "HLC.DB.C" and "HLC.DB.D" during the week of August 4, 2014.

ABOUT 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 in Canada. Holloway owns 36 hotels with 4,260 rooms.  Holloway's shares trade on the TSX under the symbol "HLC".

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 for the year ended December 31, 2013 which is available on Holloway's profile on the SEDAR website at www.sedar.com.  Holloway does not intend to update or revise any such forward-looking information should its assumptions and estimates change.

SOURCE: Holloway Lodging Corporation

For further information please contact Michael Rapps, Chairman, at [phone] or Jane Rafuse, Chief Financial Officer, at [phone].