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United States

HALIFAX, Nov. 30, 2012 /CNW/ – Holloway Lodging Real Estate Investment
Trust (TSX: HLR.UN) (“Holloway”) is pleased to announce that it has
acquired a 90% interest in the Holiday Inn Express hotel located in Stellarton, Nova Scotia for a purchase price of $7.9
million, net of cash acquired. Holloway paid cash on closing of $2.4
million and assumed its pro rata share of the hotel’s mortgage.
Holloway funded the cash purchase price using cash on hand and its
credit line. Holloway expects to receive a distribution of the hotel’s
excess cash shortly after closing.

The purchase price, net of cash acquired, implies a cap rate of 10.3% on
trailing twelve-month net operating income and 11.0% on estimated 2013
net operating income. Holloway intends to refinance the hotel’s
mortgage in the coming months, which will meaningfully increase the
hotel’s cash flow.

The Holiday Inn Express hotel is located in Stellarton, Nova Scotia and is the leading hotel in
the market. The hotel was built in 2008 and has 125 rooms, 3,000 square
feet of meeting space, a pool and indoor waterslide and a fitness
facility.

Michael Rapps, Holloway’s Chairman, stated “This acquisition is another
milestone for Holloway as it is our first acquisition since completing
our balance sheet restructuring. More importantly, this acquisition is
accretive to Holloway on a net asset value basis and a cash flow basis
and furthers our goal of growing our net asset value per share. We
expect this property to contribute close to $1.0 million of net
operating income in 2013.”

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 18 hotels with 1,790 rooms.
Holloway’s trust units trade on the TSX 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 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,
including in particular financial and operating results of the Holiday
Inn Express hotel located in Stellarton, Nova Scotia, the payment of any cash
distributions from such property after closing and Holloway’s ability
to refinance the mortgage on such property after closing and the
expected cash flow impact of such refinancing. 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 for the year ended December 31, 2011
which is available on the REIT’s profile on the SEDAR website at www.sedar.com. The REIT does not intend to update or revise any such forward-looking
information should its assumptions and estimates change.

SOURCE HOLLOWAY LODGING REAL ESTATE INVESTMENT TRUST