HOLLOWAY LODGING REAL ESTATE INVESTMENT TRUST ANNOUNCES CHANGES TO BOARD OF
TRUSTEES

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HALIFAX, Dec. 24 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN, HLR.DB, HLR.DB.A) ("Holloway" or the "REIT") announced George Armoyan and Michael Rapps have been appointed to its board of trustees and that Amy Erixon and G. Wayne Watson have resigned as trustees.  All of these changes are effective immediately.  In addition, Royal Host Real Estate Investment Trust has withdrawn its requisition for a special meeting of the unitholders of the REIT that was announced on December 7, 2010.

Glenn Squires, Chief Executive Officer of the REIT, said, "On behalf of Holloway, I'd like to thank Amy Erixon and Wayne Watson for their efforts on behalf of, and contributions to, the REIT.  We look forward to working with Mr. Armoyan and Mr. Rapps and welcome them to the board."

Brief biographies of the new trustees are below.

George Armoyan

George Armoyan is President of Geosam Investments Limited, a private investment company focused on investing in small and mid capitalization companies where there is an opportunity to promote positive change and create shareholder value. Mr. Armoyan was previously CEO and Chairman of Clarke Inc. During his tenure as CEO, Mr. Armoyan transformed Clarke from a transportation company into the activist investment company it is today.  Mr. Armoyan currently serves as Chairman of Royal Host Real Estate Investment Trust and General Donlee Income Fund. Mr. Armoyan holds a B.Eng. (Civil) from Dalhousie University. In 2008, Mr. Armoyan was named Atlantic Canada's Entrepreneur Of The Year® by Ernst & Young.

Michael Rapps

Michael Rapps is an investment manager at Geosam Investments Limited, a private investment company focused on investing in small and mid capitalization companies where there is an opportunity to promote positive change and create shareholder value. Prior to joining Geosam, Mr. Rapps practiced law at Davies Ward Phillips & Vineberg LLP. Mr. Rapps holds a BCL and an L.LB from McGill University.

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. Holloway currently owns 22 hotels with 2,386 rooms.

Holloway's units and convertible debentures trade on the Toronto Stock Exchange under the symbols HLR.UN, HLR.DB and HLR.DB.A, respectively.

For further information:

Mr. Glenn Squires, Chief Executive Officer of the REIT, [phone]; Ms. Tracy Sherren, Chief Financial Officer of the REIT, [phone].