Royal Host Inc.

May 06, 2011 08:38 ET

Royal Host Appoints CEO and Announces Private Placement and Incentive Options

HALIFAX, NOVA SCOTIA--(Marketwire - May 6, 2011) - Royal Host Inc. (TSX:RYL)(TSX:RYL.DB.B)(TSX:RYL.DB.C)(TSX:RYL.DB.D) – ("Royal Host" or the "Company") is pleased to announce today the appointment of Mr. John A. Carnella as President and Chief Executive Officer of the Company. Mr. Carnella is a 25-year veteran of the hotel and finance industries and most recently served for five years as Executive Vice President and Chief Financial Officer of Fairmont Raffles Hotels International, a global hotel owner and operator based in Toronto with properties in over 25 countries. Prior to joining Fairmont Raffles, Mr. Carnella spent eight years at Host Marriott Corporation (now, Host Hotels and Resorts) ("Host"), the largest lodging real estate investment trust in the world. During his tenure at Host, Mr. Carnella served as Senior Vice President of Acquisitions and as Senior Vice President and Treasurer. Prior to joining Host, Mr. Carnella held a series of progressive positions in investment banking with Lazard Freres & Co. (now, Lazard) and later with National Westminster Bank (now, The Royal Bank of Scotland).

Mr. Carnella is a past Trustee of Legacy Hotels REIT, and a past member of the Board of Avendra LLC, a global procurement company serving the lodging industry. Mr. Carnella holds of Bachelor of Science degree from Cornell University and a Masters of Business Administration degree from The Wharton School at the University of Pennsylvania.

"We are pleased to have John join our team; his extensive experience in both the lodging and finance industries affirms our commitment to becoming a leading hospitality organization within Canada. John's recent role as a strategic consultant to the Board of Royal Host provides him with immediate insight into our opportunities" stated Scott Armour McCrea, a director of the Company.

Mr. Carnella added, "I have enjoyed getting to know the Board and management team at Royal Host over the past six months and look forward to working with them to move the Company forward. Lodging has been, and will continue to be, a cyclical business and experts suggest that 2011 is anticipated to be the first year of a multi-year recovery for the industry. Royal Host has a unique mix of assets that should benefit from that recovery."

In conjunction with Mr. Carnella's appointment, the Company announced today a proposed non-brokered private placement with Mr. Carnella subject to receipt of all regulatory approvals, of up to 270,270 common shares of the Company ("Common Shares") from treasury at a subscription price of $1.48 per Common Share for aggregate gross proceeds of up to $400,000. Proceeds from the private placement will be used for general corporate purposes.

Under the terms of Mr. Carnella's executive employment agreement, the Company has agreed, subject to the receipt of all regulatory approvals, to issue up to 270,270 incentive stock options to Mr. Carnella at an exercise price of $1.48 per Common Share. The total number of options to be issued will equal the total number of Common Shares acquired by Mr. Carnella under the private placement. The stock options shall have a five year term with a three year vesting period, with all other terms being consistent with the provisions of the Company's proposed stock option plan which shall be submitted to the shareholders of the Company for approval at the up-coming annual general meeting of shareholders due to be held on June 3, 2011.

About Royal Host

Royal Host is a uniquely diversified hospitality company that delivers shareholder value through hotel ownership, investment, and franchising. Royal Host's portfolio of Canadian hotels operates under a variety of recognizable brands as well as a number of independent properties. The Corporation's hotel portfolio is further enhanced by a stable franchising business.

Royal Host's common shares and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL", "RYL.DB.B", "RYL.DB.C" and "RYL.DB.D" respectively.

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.

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