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

Royal Host Real Estate Investment Trust

March 28, 2007 15:00 ET

Royal Host REIT Announces Normal Course Issuer Bid for Its 6% and 6.25% Convertible Unsecured Subordinated Debentures

CALGARY, ALBERTA--(CCNMatthews - March 28, 2007) - Royal Host Real Estate Investment Trust (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) ("Royal Host") announced today that the Toronto Stock Exchange ("TSX") has accepted Royal Host's Notices of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Royal Host considers advisable, (i) its 6% convertible unsecured subordinated debentures with a maturity date of October 31, 2015 ("6% Debentures") (Trading Symbol: RYL.DB.B) and (ii) 6.25% convertible unsecured subordinated debentures with a maturity date of September 30, 2013 ("6.25% Debentures") (Trading Symbol: RYL.DB.C) (the 6% Debentures and 6.25% Debentures are collectively referred to as the "Debentures"). Royal Host intends to purchase for cancellation up to a maximum of $5,941,000 principal amount of the 6% Debentures (5,941 Debentures), being approximately 10% of Royal Host's "public float" outstanding on the date hereof, calculated in accordance with the rules of the TSX. As of the date hereof, the public float and the issued and outstanding is $59,415,000. Royal Host intends to purchase for cancellation up to a maximum of $5,999,000 principal amount of the 6.25% Debentures (5,999 Debentures), being approximately 10% of Royal Host's "public float" outstanding on the date hereof, calculated in accordance with the rules of the TSX. As of the date hereof, the public float and the issued and outstanding is $59,995,000. The price which Royal Host will pay for any Debentures purchased by it will be the prevailing market price of the Debentures on the TSX at the time of such purchase. The actual number of Debentures that may be purchased for cancellation and the timing of any such purchases will be determined by Royal Host.

The Bid will commence on March 30, 2007 and will terminate on March 29, 2008 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 Debentures may not fully reflect the underlying value of the Debentures and that at such times the purchase of Debentures would be in the best interests of Royal Host. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining Debenture holders. In addition, the purchases by Royal Host may increase liquidity to Royal Host's Debenture holders wishing to sell their Debentures.

Royal Host has not made any purchases of the Debentures 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 109 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.A", "RYL.DB.B" and "RYL.DB.C", 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.

Contact Information

  • Royal Host REIT
    Michael L. Jackson
    President & Chief Operating Officer
    (403) 259-9800
    or
    Royal Host REIT
    Wayne King
    Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)
    Email: investorinfo@royalhost.com
    Website: www.royalhost.com