Holloway Lodging Corporation (Holloway) has been sold to its largest shareholder Clarke Inc., (Clarke). Clarke currently owns 51 per cent of the Holloway shares.

According to the press release, the acquisition is valued at approximately  $265 million. This implies a price per hotel room of approximately $88,200 and a cap rate of 6.4 per cent.

“In recent years, Holloway has demonstrated the value of its hotel investment strategy and operational capabilities. The result has been a meaningful increase in the company’s book value per share and attractive total shareholder return. We believe this transaction provides Holloway’s shareholders with an attractive value proposition, where the value of the company’s efforts in recent years is being recognized while also allowing shareholders to continue to participate in the next phase of Holloway’s growth,” said David Wood, lead member of Holloway’s Special Committee in the press release.

“We are pleased to acquire the remainder of Holloway and welcome everyone on the Holloway team to Clarke. Holloway is a hotel-specific example of Clarke’s general investment framework, namely buying an asset or business opportunistically, investing the time, energy and capital required to improve that asset or business and then monetizing that asset or business at an attractive price and time. We look forward to continuing to enhance the value of Holloway’s properties,” added Michael Rapps, President and CEO of Clarke.

Following the acquisition, Clarke intends to appoint Marc Staniloff as a director of Halifax-based Clarke. Staniloff is president and chief executive officer, and the founding partner, of Superior Lodging Corp., a privately owned, vertically integrated hotel company, focused on the development, investment, and management of nationally franchised, limited service hotels in Canada. Staniloff received his bachelor of commerce degree from the University of Calgary and is currently a director of Holloway.

The sale is expected to close at the end of this month.