Holloway Lodging Real Estate Investment Trust has obtained commitments to refinance mortgages on its Radisson Suite Hotel Halifax and Holiday Inn Express Halifax properties in Nova Scotia, Canada.

The existing mortgages on the properties mature on 1 April 2010.

The refinancings will result in aggregate gross proceeds of approximately CAD10.5m and shall be for a term of five years with a fixed interest rate of 6.6 per cent.

Proceeds from the refinancing commitments will be used to repay maturing mortgages of CAD8.9m and the balance will be used for renovations at both properties.

The refinancings are scheduled to close on 1 March 2010 after which time Holloway will not have any material debt maturities until mid 2011.

Glenn Squires, chief executive officer, says: "After exploring a number of alternatives to refinance the existing mortgages on the Radisson Suite Hotel Halifax and Holiday Inn Express Halifax, we were pleased to proceed with the financing which will allow us to reinvest additional capital into two of our top performing hotels. The completion of the financing addresses our debt maturities for the next 17 months."