Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

December 28, 2007 14:15 ET

Royal Host REIT Announces Normal Course Issuer Bid for Its Trust Units

CALGARY, ALBERTA--(Marketwire - Dec. 28, 2007) - Royal Host Real Estate Investment Trust (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) ("Royal Host") announced today that the Toronto Stock Exchange ("TSX") has accepted Royal Host's Notice of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Royal Host considers advisable, its trust units (Trading Symbol: RYL.UN) (the "Units"). Royal Host intends to purchase for cancellation up to a maximum of 2,157,622 Units, being approximately 10% of Royal Host's "public float" outstanding on the date hereof, calculated in accordance with the rules of the TSX. As of the date hereof, there are 27,487,826 Units issued and outstanding. The price which Royal Host will pay for any Units purchased by it will be the prevailing market price of the Units on the TSX at the time of such purchase. The actual number of Units that may be purchased for cancellation and the timing of any such purchases will be determined by Royal Host.

The Bid will commence on January 2, 2008 and will terminate on January 1, 2009 or such earlier time as the Bid is completed or terminated at the option of Royal Host.

Management of Royal Host believes that, from time to time, the market price of the Units may not fully reflect the underlying value of the Units and that at such times the purchase of Units would be in the best interests of Royal Host. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining Unitholders. In addition, the purchases by Royal Host may increase liquidity to Royal Host's Unitholders wishing to sell their Units.

Royal Host has made purchases of 2,000,000 Units during the previous 12 months at a weighted average price of $7.21 under a previous normal course issuer bid which will expire December 28, 2007. The average daily trading volume of the Units for six months prior to the date hereof was 55,937 (25% of the average daily trading volume of the Units is 13,984).

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 services to its own portfolio, Royal Host's team manages a number of properties on behalf of third parties using its proven 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 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, C.A.
    Vice President and Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)