Royal Host Inc.

Royal Host Inc.

December 16, 2011 18:13 ET

Royal Host Inc. Announces Results of its Substantial Issuer Bids for Series B and Series D Debentures

HALIFAX, NOVA SCOTIA--(Marketwire - Dec. 16, 2011) - Royal Host Inc. ("Royal Host" or the "Corporation") (TSX:RYL) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) announced today the final results of its previously announced substantial issuer bids (the "Offers" and each individually an "Offer") to purchase for cancellation up to $15,000,000 aggregate principal amount of the issued and outstanding Series B 6.00% convertible unsecured subordinated debentures of the Corporation due October 31, 2015 (the "Series B Debentures") and up to $10,000,000 aggregate principal amount of the issued and outstanding Series D 5.90% convertible unsecured subordinated debentures of the Corporation due June 30, 2014 (the "Series D Debentures" and, together with the Series B Debentures, the "Debentures"), which expired at 5:00pm Eastern Standard Time on Friday, December 16, 2011.

As at 5:00pm (Eastern Standard Time) today, based on reports provided by Computershare, the Depositary for the Offers, a total of $12,040,000 principal value of the Series B Debentures and a total of $12,704,000 principal value of the Series D Debentures had been deposited pursuant to the Offers. The Corporation will be taking up all of the $12,040,000 Series B Debentures and all of the $12,704,000 Series Debentures deposited as of 5:00pm (Eastern Standard Time) today as required by applicable securities laws and as set forth in the Offers and accompanying circulars dated October 13, 2011 and as varied and extended by the Notices of Variation and Extension dated November 30, 2011.

Payment for the Debentures tendered and accepted for purchase will be made as soon as practicable and in accordance with the Offers. The purchase for cancellation of Debentures represents approximately 26.4% of the Series B Debentures and 25.6% of the Series D Debentures outstanding as of October 13, 2011, the date of the announcement of the Offers. After giving effect to the purchase for cancellation, approximately $33,536,000 principal value of the Series B Debentures and $37,020,000 principal value of the Series D Debentures will remain outstanding.

About Royal Host Inc.

Royal Host is a diversified hospitality company that delivers shareholder value through hotel ownership, investment and franchising. The Company's hotels, which contain 3,169 rooms, are located in five Provinces and Territories across Canada. Twenty-three of the Company's hotels operate under internationally recognized brands such as Travelodge®, Super 8®, Holiday Inn®, Hilton®, Ramada® and Country Inns & Suites®. Two of the Company's hotels are unbranded. In addition to its real estate holdings, the Company owns and operates the Travelodge Canada franchise business which is currently comprised of over 90 hotels across nine Provinces and Territories.

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 may contain 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.

This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.

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