Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

May 01, 2008 17:51 ET

Royal Host REIT Announces Sale of Lethbridge El Rancho Motor Hotel

CALGARY, ALBERTA--(Marketwire - May 1, 2008) - Royal Host Real Estate Investment Trust ("Royal Host") (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) today announced that it has closed on the sale of the 105-room El Rancho Motor Hotel & Convention Centre in Lethbridge, Alberta to a third party for $2.9 million. As the property was unencumbered, proceeds from the sale will be used for general corporate working capital purposes.

"We are pleased to have achieved our goal of disposing of this non-core asset," said Patrick Lambie, Executive Vice President of Royal Host. "This transaction further enables us to focus our attention and resources on assets and opportunities that will enhance long term Unitholder value. We wish to thank the devoted team at the El Rancho for their commitment and dedication," he added.

Royal Host is a diversified hospitality trust that delivers Unitholder value through hotel ownership, investment, management and franchising and is Canada's second-largest hotel Real Estate Investment Trust.

Subsequent to this transaction, Royal Host owns a diversified portfolio of 33 properties, comprising approximately 4,100 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, 13 of which are owned by Royal Host, 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, C.A.
    Executive Vice President and Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)