Many fans questioned the choice to get rid of the charismatic manager, and Fernandes has now revealed that the move was made with the intention of taking the club forward.
"It was a hard thing to do," Fernandes told the official QPR website.
"Ian was extremely passionate about the club - he loved the club. I think he came at the right time when we were having that transition and were having to bring in lots of young players.
"He had the right spirit and made some of the hard decisions and helped the owners. I just felt, along with the other owners, shareholders and management, Lee [Hoos] and Les [Ferdinand] particularly, that we needed to move a little bit further forward in some areas."
Holloway won 26 of his 80 matches after returning to Loftus Road in November 2016, drawing 14 and losing the other 40, and had one year remaining on his contract.