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

Royal Host Real Estate Investment Trust

December 27, 2006 13:13 ET

Royal Host REIT Announces Normal Course Issuer Bid for Its Trust Units

CALGARY, ALBERTA--(CCNMatthews - Dec. 27, 2006) - Royal Host Real Estate Investment Trust ("Royal Host") (TSX:RYL.UN) (TSX:RYL.DB) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) 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 a maximum of 2,000,000 of Royal Host's issued and outstanding trust units ("Units"). Purchases of Units will be made on the open market through the TSX. There are currently 24,465,658 Units outstanding. The maximum number of Units to be purchased pursuant to the Bid represents approximately 10% of the "public float" of the Units outstanding on the date hereof, calculated in accordance with the rules of the TSX (being approximately 20,046,798 Units). The price which Royal Host will pay for any Units purchased by it will be the prevailing market price of the Units on the TSX at the time of such purchase. The actual number of Units that may be purchased for cancellation and the timing of any such purchases will be determined by Royal Host.

The Bid will commence on December 29, 2006 and will terminate on December 28, 2007 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 Units may not fully reflect the underlying value of the Units and that at such times the purchase of Units would be in the best interests of Royal Host. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining unitholders. In addition, the purchases by Royal Host may increase liquidity to Royal Host's unitholders wishing to sell their Units.

Except for the purchase of 1,639,500 Units at an average purchase price of $6.13 per Unit pursuant to Royal Host's normal course issuer bid that expires on December 28, 2006, Royal Host has not made any purchases of Units during the previous 12 months.

Royal Host's core businesses are hotel ownership, management and franchising. Royal Host owns 37 hotels (comprising 4,500 rooms), manages additional properties for third parties, and franchises 111 locations (including 15 owned by Royal Host) under the Travelodge and Thriftlodge banners.

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 is committed to achieving ongoing improvements to its bottom line results. Royal Host Units and Convertible Debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", "RYL.DB", "RYL.DB.A", "RYL.DB.B" and "RYL.DB.C" respectively.

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