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Temple Hotels sells its remaining stake in Holloway Lodging Corp.

WINNIPEG – Secondary market hotel operator Holloway Lodging Corp. (TSX:HLC) has undergone some big changes in ownership, with one major shareholder divesting the last of its stake and another taking a more than one-third interest in the company.

Temple Hotels Inc. (TSX:TPH) said Tuesday that it has sold its remaining 15.7 per cent stake in for $10.3 million.

Temple said the 2.9 million shares were sold to accredited investors through the facilities of the Toronto Stock Exchange at a price of $3.54 per share.

Meanwhile, privately held Midland Resources Holding Ltd. announced that it has acquired more than 6.1 million Holloway shares under a private agreement at an average price of $3.52 per share.

The purchase represented about 34.1 per cent of Holloway shares and raised its overall holding to 34.7 per cent.

Midland is holding the shares on behalf of 2119895 Ontario Limited. Midland and 2119895 Ontario Limited are beneficially owned by Alex Shnaider and his family.

Meanwhile Neil Labatte, acting jointly or in concert with Midland as defined under securities laws, has acquired 113,485 common shares of Holloway, also at an average price of $3.52 per share and representing about 0.6 per cent of the company.

Both buyers said the shares were acquired for investment purposes and that they may, from time to time on an individual or joint basis, acquire additional securities of Holloway or dispose of some or all of the existing securities.

Holloway owns 18 hotels with 1,798 rooms, mostly in secondary, tertiary and suburban markets.

Temple holds a portfolio of hotels and other related assets including the Temple Gardens Mineral Spa in Moose Jaw, Sask..

Temple shares closed down five cents at $5.46 on the Toronto Stock Exchange, while Holloway Lodging shares were up 24 cents at $3.65.