Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

January 17, 2007 17:37 ET

Royal Host Sells Timeshare Business Unit; Approves Repayment of 9.25% Convertible Debentures on March 1, 2007

CALGARY, ALBERTA--(CCNMatthews - Jan. 17, 2007) - Royal Host Real Estate Investment Trust (TSX:RYL.UN) (TSX:RYL.DB) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) ("Royal Host") is pleased to announce that it has sold its timeshare business unit effective December 31, 2006 for $1.25 million in cash. The transaction includes all timeshare operations managed by Royal Host, except for those at the Grand Okanagan Lakefront Resort and Conference Centre in Kelowna.

Michael L. Jackson, President and Chief Operating Officer of Royal Host stated, "The successful completion of this transaction is consistent with our decision to focus on our core businesses of hotel ownership, management and franchising."

In addition, the Board of Trustees of Royal Host has approved the repayment of the 9.25% Convertible Unsecured Subordinated Debentures upon their maturity on March 1, 2007. Currently, there are $38 million of this series outstanding. This repayment will utilize funds currently on deposit and will not require any additional borrowing. This will reduce Royal Host's weighted average cost of debt to 7.3%.

Royal Host's core businesses are hotel ownership, management and franchising. Royal Host owns 37 hotels, comprising 4,500 rooms, manages additional properties for third parties, and franchises 110 locations (including 15 owned by Royal Host) under the Travelodge and Thriftlodge banners.

Royal Host is committed to creating stable and repeatable earnings through high quality assets, efficient operations and exceptional people. Through strategic management and growth of its assets and ongoing training, communication and teamwork, it is committed to achieving ongoing improvements to its bottom line results. Royal Host's Units and Convertible Debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", "RYL.DB", "RYL.DB.A", "RYL.DB.B" and "RYL.DB.C", respectively.

Contact Information

  • Royal Host Real Estate Investment Trust
    Mike Jackson
    President & Chief Operating Officer
    (403) 259-9800
    (403) 259-8580 (FAX)
    Royal Host Real Estate Investment Trust
    Wayne King
    Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)