Royal Host Inc.
TSX : RYL
TSX : RYL.DB.B
TSX : RYL.DB.C
TSX : RYL.DB.D

January 10, 2011 09:17 ET

Royal Host Inc. Announces Normal Course Issuer Bid and Automatic Securities Repurchase Plan for Its Shares

HALIFAX, NOVA SCOTIA--(Marketwire - Jan. 10, 2011) - Royal Host Inc. ("Royal Host") (TSX:RYL) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) 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, its common shares (Trading Symbol: RYL) (the "Shares") through the facilities of the TSX. Royal Host intends to purchase for cancellation up to a maximum of 1,226,322 Shares, being approximately 10% of Royal Host's "public float" outstanding on January 1, 2011, calculated in accordance with the rules of the TSX. As of January 1, 2011, the public float and the issued and outstanding were 12,263,220 and 17,650,478 Shares, respectively. Of the 17,650,478 issued and outstanding Shares, 71,300 were repurchased by Royal Host Real Estate Investment Trust (the "Trust") prior to January 1, 2011 but had not yet been cancelled (on January 1, 2011, unitholders of the Trust received, for each unit of the Trust held, one Share of Royal Host Inc.). The price which Royal Host will pay for any Shares purchased by it will be the prevailing market price of the Shares on the TSX at the time of such purchase.

The Bid will commence on January 12, 2011 and will terminate on January 11, 2012 or such earlier time as the Bid is completed or terminated at the option of Royal Host.

Concurrent with the NCIB renewal, Royal Host has received approval to establish an automatic securities purchase plan (the "Plan") for the Shares. The Plan was established to provide standard instructions regarding how Royal Host's Shares are to be repurchased under each issuer bid. Accordingly, Royal Host may repurchase its Shares under the Plan on any trading day during the issuer bids including during self-imposed trading blackout periods. The Plan will commence immediately and terminate together with the Bid. Royal Host may otherwise vary, suspend or terminate the Plan only if it does not have material non-public information and the decision to vary, suspend or terminate the Plan is not taken during a self-imposed trading blackout period. The Plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been reviewed by the Toronto Stock Exchange.

Management of Royal Host believes that, from time to time, the market price of the Shares may not fully reflect the underlying value of the Shares and that at such times the purchase of Shares would be in the best interests of Royal Host. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining Shareholders. In addition, the purchases by Royal Host may increase liquidity to Royal Host's Shareholders wishing to sell their Shares.

The actual number of Shares that may be purchased for cancellation and the timing of any such purchases will be determined by Royal Host, subject to a maximum daily purchase limitation of 4,262 Shares which equals 25% of the average daily trading volume for the previous six months of trading. The average daily trading volume for the previous six months was 17,050.

During the previous twelve months, the Trust made purchases of 620,000 Trust Units and Royal Host Inc. made purchases of 20,400 Shares (on or after January 1, 2011) at a weighted average price of $2.27, under a previous normal course issuer bid which expires on January 11, 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 unbranded properties. Royal Host's hotel portfolio is further enhanced by a stable franchising business and a portfolio of publicly-traded securities from within the hospitality and service sectors.

Royal Host 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. 

Note on Forward Looking Statements:

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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