Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

December 05, 2007 18:48 ET

Royal Host Increases Ownership of Holloway Lodging Units

CALGARY, ALBERTA--(Marketwire - Dec. 5, 2007) - Royal Host Real Estate Investment Trust ("Royal Host" or the "Trust") (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) today announced that it has acquired ownership of 1,648,000 units of Holloway Lodging Real Estate Investment Trust ("Holloway"), representing approximately 4.26% of the total outstanding units of Holloway and 4.21% of the voting rights attached to all issued and outstanding securities of Holloway.

Immediately after the transaction, Royal Host owns 6,817,400 units of Holloway, representing approximately 17.61% of the total outstanding units of Holloway and 17.41% of the voting rights attached to all issued and outstanding securities of Holloway.

The purchase of the Holloway units by Royal Host was made through the facilities of The Toronto Stock Exchange for investment purposes. Royal Host may, in the future, take such actions in respect of its holdings as it may deem appropriate in light of the circumstances then existing, including the purchase of additional securities of Holloway through open market purchases or privately negotiated transactions, or the sale of all or a portion of its holdings in the open market or in privately negotiated transactions to one or more purchasers.

The issuance of this news release does not constitute an admission by Royal Host that it is acting jointly or in concert with Holloway.

Royal Host is a fully-integrated hotelier focused on hotel ownership, management and franchising and is Canada's second-largest hotel Real Estate Investment Trust.

Royal Host owns a diversified portfolio of 37 properties, comprising 4,500 guest rooms. The portfolio includes limited, focused and full-service hotels in the mid-market to upscale hospitality segments, and is well represented throughout Canada operating under such recognizable brands as Best Western®, Country Inns & Suites®, Hilton®, Holiday Inn®, Ramada®, Super 8®, Thriftlodge® and Travelodge®, as well as a number of unbranded properties such as the Chimo Hotel in Ottawa and the Grand Okanagan Resort and Conference Centre in Kelowna.

In addition to providing management expertise to its own portfolio, Royal Host's team of talented, highly-skilled employees manages a number of properties on behalf of third parties using its well-respected training programs, operating procedures, revenue and yield management systems and sales programs.

Royal Host also owns the master franchise rights for Travelodge® and Thriftlodge® in Canada. Through its subsidiary, Travelodge Canada, Royal Host currently franchises over 100 locations, 15 of which are owned by the Trust, and receives a stable stream of revenue through monthly royalty fees paid by licensed hotel owners and by selling franchise licenses, which enhances the overall diversity of Royal Host's portfolio.

Royal Host trust units and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", "RYL.DB.A", "RYL.DB.B", "RYL.DB.C" and "RYL.DB.D", respectively.

Contact Information

  • Royal Host Real Estate Investment Trust
    A. Brad Cann, CA
    Vice President and Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)