Construction of Sheraton Hotel at Airport on Hold for up to Twelve Months

Halifax, N.S. – Halifax International Airport Authority (HIAA) and its partners New Castle Hotels, LLC and Southwest Properties Limited have agreed to an abeyance period of up to twelve months with regard to the construction of a new full service Sheraton Hotel adjacent to the terminal building at Halifax Stanfield International Airport (HSIA).

The project is being put on hold due to the current economic conditions.

An abeyance agreement between the parties is in effect until January 31, 2010. The parties have been negotiating since May 2008 on a land lease for the construction, management and operation of the hotel.

“This is a very reasonable, prudent step to take, given the current global economic conditions,” says HIAA President & CEO Tom Ruth. “Our partners in this project are among the best in the business and we are hopeful that conditions will be such, within the next twelve months, that we can conclude the lease arrangements.”

“We believe in the long-term strength of Halifax Stanfield International Airport and are committed to moving forward with this project once the economic climate improves,” noted Jim Spatz at Southwest Properties. “A Sheraton Hotel linked to the terminal building will be an important addition to our world-class airport, and we look forward to the return of the world capital markets.”

About HSIA

Halifax Robert L. Stanfield International Airport is Atlantic Canada’s gateway to the world. It is the region’s principal full-service airport providing passengers and cargo clients with access to markets across the country, the United States and Europe, and the only airport in Atlantic Canada to offer U.S. preclearance, and Canada Customs services on a 24 hour, seven day a week basis. The Airport welcomes over 3.5 million passengers annually, and is an internationally recognized leader in customer service, having received first place awards in the global Airport Service Quality program for the past five years.

About Southwest Properties
For more than 50 years, Southwest Properties has been a guiding presence in the development of residential and commercial property throughout Atlantic Canada. Southwest currently owns/manages eleven commercial and retail properties located in Halifax and St. John’s, and more than 1,250 quality apartments situated in the best residential communities of the Halifax area, including Bishop’s Landing, the first significant mixed-use and multi-unit development on the Halifax Waterfront. Southwest currently owns hotels in both Moncton and Dartmouth in partnership with New Castle Hotels.

About New Castle Hotels and Resorts
New Castle Hotels & Resorts, a privately owned company founded in 1980, owns, operates and develops hotels, conference centres and resorts under Marriott, Hilton, Westin and Sheraton brands, as well as independent properties. In Nova Scotia, New Castle manages Signature Resorts – Keltic Lodge, Liscombe Lodge and Digby Pines.