Holloway Lodging Real Estate Investment Trust Announces Amendment to Normal Course Issuer Bid

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HALIFAX, March 9, 2012 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN) ("Holloway" or the "REIT") announced today that the Toronto Stock Exchange (the "TSX") has approved the REIT's amended notice of intention to make a normal course issuer bid for up to an additional 39,590,303 of its trust units, bringing the total under the current normal course issuer bid to 39,692,303 trust units, representing 10% of the REIT's public float of trust units as of March 1, 2012.

Pursuant to the notice, the REIT may, until April 28, 2012 (or on such earlier date as the REIT completes its purchases pursuant to the bid or provides notice of cancellation), purchase trust units through the facilities of the TSX at prevailing market prices in accordance with the rules and policies of the TSX. All trust units purchased by the REIT under the normal course issuer bid will be cancelled. As of March 1, 2012, the REIT had a total of 753,570,405 trust units issued and outstanding. The REIT may purchase up to 25% of the weighted average daily trading volume on any day, which is 914,385 trust units, subject to a weekly "block purchase exemption".

The amendment of the normal course issuer bid follows the issuance by the REIT on January 23, 2012 of an additional 714,224,023 trust units to former debenture holders upon redemption of the REIT's 6.5% convertible unsecured subordinated debentures. The REIT has previously purchased 102,000 trust units at a weighted average trading price of $0.099 per trust unit pursuant to the current normal course issuer bid.

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

About Holloway

Holloway is a real estate investment trust 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 and providing investors with stable distributions. Holloway currently owns 18 hotels with 1,747 rooms. Holloway's trust units trade on the Toronto Stock Exchange under the symbol HLR.UN.

This press release contains forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to the REIT's future outlook and anticipated events or results and may include statements regarding the future financial position, property acquisition strategies and opportunities, business strategy, financial results and plans and objectives of the REIT. Particularly, statements regarding the REIT's future unit acquisitions are forward-looking statements. 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 the REIT 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 dated March 24, 2011 which is available at www.sedar.com. The REIT does not intend to update or revise any such forward-looking information should its assumptions and estimates change.

Jane Rafuse, Chief Financial Officer, at 902-404-3499.