Holloway Lodging Corporation Announces Normal Course Issuer Bid

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HALIFAX, Aug. 13, 2013 /CNW/ - Holloway Lodging Corporation (TSX: HLC) ("Holloway" or the "Company") announced today that the Toronto Stock Exchange (the "TSX") has approved the Company's notice of intention to make a normal course issuer bid for up to 896,900 of its common shares, representing 5% of the issued and outstanding shares as of August 12, 2013.  During the period from August 15, 2012 to August 14, 2013, the Company purchased 902,400 shares under a previous normal course issuer bid.  The weighted average price paid was $3.58 per share.

Pursuant to the notice, the Company may, over the 12 month period commencing on August 15, 2013 and ending on August 14, 2014 (or on such earlier date as the Company completes its purchases pursuant to the bid or provides notice of cancellation), purchase shares through the facilities of the TSX at prevailing market prices in accordance with the rules and policies of the TSX.  All shares purchased by the Company under the normal course issuer bid will be cancelled. As of August 12, 2013, the Company had a total of 17,938,002 shares issued and outstanding.  The average daily trading volume of the shares during the last six months ending on July 31, 2013 was 65,839 shares and the daily repurchase limit for the shares is 16,460 shares.

The Company believes that, on occasion, the shares become available at prices that do not give full effect to their underlying value, based solely on management's opinion of the Company's future prospects. Accordingly, management believes that the purchase of shares pursuant to the normal course issuer bid represents an investment opportunity for Holloway and an appropriate use of its funds.

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.

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.

SOURCE: Holloway Lodging Corporation

Please contact Michael Rapps, Chairman, at [phone] or Jane Rafuse, Chief Financial Officer, at [phone].