Royal Host Inc.

May 26, 2011 14:47 ET

Royal Host Completes Private Placement and Issues Incentive Options

HALIFAX, NOVA SCOTIA--(Marketwire - May 26, 2011) -Royal Host Inc. (TSX:RYL) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) - Further to its news release dated May 6, 2011, Royal Host Inc. ("Royal Host" or the "Company") is pleased to announce the completion of a private placement from treasury of 170,000 common shares of Royal Host to John Carnella, President and Chief Executive Officer of the Company, at a price of Cdn$1.48 per common share for aggregate proceeds to Royal Host of Cdn$251,600. Royal Host intends to use the proceeds from the private placement for general corporate purposes.

Royal Host is also pleased to announce the issuance of 170,000 incentive stock options to Mr. Carnella at an exercise price of $1.48 per common share. The stock options 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 and special 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.

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