Holloway Lodging REIT completes issuance of units to holders of convertible debentures

/Not for distribution on U.S. wire services or for dissemination in the United States/

HALIFAX, Jan. 23, 2012 /CNW/ - Holloway Lodging Real Estate Investment Trust (TSX: HLR.UN) ("Holloway" or the "REIT") announces the completion of the issuance of trust units ("Units") of the REIT to the holders (the "Debentureholders") of its 6.5% convertible unsecured subordinated debentures (the "Debentures") in satisfaction of the previously announced redemption of the Debentures. A total of 714,224,023 Units were issued to Debentureholders. Holloway currently has 753,454,513 Units outstanding.

ABOUT HOLLOWAY LODGING REAL ESTATE INVESTMENT TRUST

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 owns 19 hotels with 1,881 rooms. The Units trade on the TSX under the symbol HLR.UN.

Please contact Michael Rapps, Chairman and Interim Chief Financial Officer of the REIT at [phone].