Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

December 14, 2009 10:19 ET

Royal Host REIT Announces That an Insider George Armoyan Has Tendered to the Issuer Bid

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 it has been advised by George Armoyan ("Armoyan") that Armoyan intends to tender approximately 21,200 trust units, representing half of his position of trust units to Royal Host's substantial issuer bid (the "Offer"), which was previously announced on November 4, 2009. Armoyan is a trustee of Royal Host.

Pursuant to the Offer, which is scheduled to expire on Monday, December 14, 2009, the Trust is offering to purchase for cancellation up to 5,000,000 of its outstanding trust units ("Units") from unitholders ("Unitholders") at a price of $2.45 per Unit. If more than 5,000,000 Units are tendered to the Offer, the Trust will purchase the Units on a pro rata basis according to the number of Units deposited, or deemed to be deposited under the terms of the Offer, by the depositing Unitholders with fractions rounded down to the nearest whole Unit. The Offer is not conditional on any minimum number of Units being deposited. The purchase of Units will be financed from existing cash and available credit facilities and is not expected to affect the Trust's monthly distributions to Unitholders.

The offer to purchase and the issuer bid circular and other related documents (the "Offer Documents"), containing the terms of the Offer and the instructions for tendering the Units were mailed to Unitholders and filed with applicable securities regulator on or about November 6, 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 Offer Documents 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(R) and Thriftlodge(R) 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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