Royal Host Real Estate Investment Trust
TSX : RYL.DB.A
TSX : RYL.UN
TSX : RYL.DB

Royal Host Real Estate Investment Trust

July 13, 2005 17:23 ET

Royal Host Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(CCNMatthews - July 13, 2005) - Royal Host Real Estate Investment Trust (TSX:RYL.UN) (TSX:RYL.DB) (TSX:RYL.DB.A) ("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, up to $2,000,000 principal amount of Royal Host's issued and outstanding 9.25% subordinated unsecured convertible debentures with a maturity date of March 1, 2007 ("Debentures") (Trading Symbol: RYL.DB), representing 5.0% of the $40,000,000 principal amount currently issued and outstanding, on the open market through the TSX. The price which Royal Host will pay for any Debentures purchased by it will be the prevailing market price of the Debentures on the TSX at the time of such purchase. The actual number of Debentures that may be purchased for cancellation and the timing of any such purchases will be determined by Royal Host.

The Bid will commence on July 15, 2005 and will terminate on July 14, 2006 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 Debentures may not fully reflect the underlying value of the Debentures and that at such time the purchase of Debentures would be in the best interests of Royal Host. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining debenture holders. In addition, the purchases by Royal Host may increase liquidity to Royal Host's debenture holders wishing to sell their Debentures.

Royal Host has not made any purchases of Debentures during the previous 12 months.

Royal Host REIT owns 37 hotels, manages 118 properties and franchises 120 locations for over 18,000 guestrooms in the mid-market to upscale segments. Royal Host also owns the master franchise rights for Travelodge in Canada and provides hotel and resort management services for its portfolio and to third party owned properties.

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 will continue to achieve ongoing improvements to its bottom line results. Royal Host units, convertible debentures and convertible debentures series A, are traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", "RYL.DB" and "RYL.DB.A", respectively.

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