Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

December 14, 2009 19:15 ET

Royal Host REIT Announces Extension of Substantial Issuer Bid and Take-Up of Units Deposited to Date

CALGARY, ALBERTA--(Marketwire - Dec. 14, 2009) - Royal Host Real Estate Investment Trust (the "Trust" or "Royal Host") (TSX:RYL.UN) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) announced today that its substantial issuer bid previously announced on November 4, 2009 (the "Offer") has been extended and will now expire at 5:00 p.m. (Halifax time) on Monday, January 11, 2010. The Offer, pursuant to which the Trust is offering to purchase up to 5,000,000 trust units (the "Units") of the Trust for a cash price of $2.45 per Unit, was previously scheduled to expire at 5:00 p.m. (Halifax time) on Monday, December 14, 2009. The Trust provided notice of the extension of the Offer to Computershare Investor Services Inc. (the "Depositary") on December 14, 2009.

The Trust will be mailing a notice of extension to all unitholders of the Trust (the "Unitholders") in connection with the extension of the Offer on or about December 21, 2009. Except for the extension of the expiration date of the Offer, the terms previously set forth in the original Offer and accompanying circular dated November 4, 2009 continue to be applicable in all respects.

As at 5:00 p.m. (Halifax time) today, based on reports provided by the Depositary for the Offer, a total of 1,210,505 Units had been deposited pursuant to the Offer. The Trust will be taking up all of the 1,210,505 Units deposited as of 5:00 p.m. today as required by applicable securities laws and as set forth in the Offer and accompanying circular dated November 4, 2009.

Neither the Trust nor its Board of Trustees makes any recommendation to Unitholders as to whether to tender or refrain from tendering their Units to the Offer. Unitholders are strongly encouraged to review the documents related to the Offer carefully and to consult with their financial and tax advisors prior to making any decision with respect to the Offer.

Royal Host is a diversified hospitality trust that delivers Unitholder value through hotel ownership, investment, management and franchising. It is Canada's second largest hotel real estate investment trust.

As at June 30, 2009, Royal Host owns a diversified portfolio of 31 operating hotels, comprising approximately 3,670 guest rooms. The portfolio includes limited and full service hotels in the mid-market and economy hospitality segments, and is well represented throughout Canada operating under recognizable brands, as well as a number of unbranded properties.

Royal Host also maintains an investment portfolio of publicly-traded securities focused on the hospitality and service sectors, which allows the Trust to readjust the balance of resources dedicated to direct hotel ownership and indirect investments.

Royal Host also owns the master franchise rights for Travelodge® and Thriftlodge® in Canada and currently franchises approximately 99 locations, 13 of which are owned by the Trust. Royal Host 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 income stream.

This press release contains certain forward-looking statements relating, but not limited to, Royal Host's operations, anticipated financial performance, business prospects, and strategies. Forward - looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", or similar words suggesting future outcomes. Such forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by such forward -looking statements. Such factors include, but are not limited to economic, competitive, and lodging industry conditions. Royal Host disclaims any responsibility to update any such forward-looking statements except as required by law.

Further information can be found in the disclosure documents filed by the Trust with the securities regulatory authorities, available at or through the Trust's website at

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