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

Royal Host Real Estate Investment Trust

March 27, 2008 23:34 ET

Royal Host REIT Announces Results of Substantial Issuer Bid for Its Trust Units

CALGARY, ALBERTA--(Marketwire - March 27, 2008) - Royal Host Real Estate Investment Trust (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) ("Royal Host") today announced that it will purchase for cancellation a total of 5,386,000 of its outstanding trust units (the "Units") (subject to adjustments to avoid the purchase of fractional shares) pursuant to its offer to purchase dated February 20, 2008 at a purchase price of $6.50 per Unit. The offer for the Units expired at 5:00 p.m. (Toronto time) on March 27, 2008.

The number of Units deposited as at the expiration date of the offer for Units was 6,362,758. As a result, Unitholders who deposited Units to the offer will have approximately 85% of their Units bought back at a price of $6.50 per Unit, subject to adjustments to avoid the purchase of fractional shares.

Royal Host and Computershare Investor Services Inc. expect that the final proration factor and exact number of Units to be taken up and paid for under the offer will be determined on or about March 31, 2008. Payment for Units tendered and accepted for purchase will be made on or about April 3, 2008. Return of Units not purchased because of proration or because they were invalidly deposited will be made as promptly as possible.

The Units to be repurchased comprise approximately 20% of the outstanding Units of Royal Host before giving effect to the repurchase. After giving effect to the repurchase, there will remain outstanding approximately 21,542,586 Units.

Royal Host is a fully-integrated hotelier focused on hotel ownership, investment, management and franchising and is Canada's second-largest hotel Real Estate Investment Trust.

Royal Host owns a diversified portfolio of 34 operating hotels, comprising 4,200 guest rooms. The portfolio includes limited, focused and full-service hotels in the mid-market to upscale hospitality segments, and is well represented throughout Canada operating under such recognizable brands as Best Western®, Country Inns & Suites®, Hilton®, Holiday Inn®, Ramada®, Super 8®, Thriftlodge® and Travelodge®, as well as a number of unbranded properties such as the Chimo Hotel in Ottawa and the Grand Okanagan Resort and Conference Centre in Kelowna.

In addition to providing management services to its own portfolio, Royal Host's team manages a number of properties on behalf of third parties using its proven training programs, operating procedures, revenue and yield management systems and sales programs.

Royal Host also owns the master franchise rights for Travelodge® and Thriftlodge® in Canada. Through its subsidiary, Travelodge Canada, Royal Host currently franchises over 100 locations, 13 of which are owned by Royal Host, and receives a stable stream of revenue through monthly royalty fees paid by licensed hotel owners and by selling franchise licenses, which enhances the overall diversity of Royal Host's portfolio.

Royal Host trust units and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", "RYL.DB.A", "RYL.DB.B", "RYL.DB.C" and "RYL.DB.D", respectively.

Forward Looking Statements

This press release contains certain statements that constitute forward-looking information or statements within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual events or the Trust's actual results or performance to differ from the projected events, results or performance contained in such forward-looking statements. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Royal Host cautions you not to place undue reliance upon such forward-looking statements, which speak only as of the date they are made. The words "anticipate", "believe", "estimate" and "expect" and similar expressions are intended to identify forward-looking statements. Numerous important factors affect Royal Host's ability to repurchase Units pursuant to a substantial issuer bid, and the timing of such an issuer bid or repurchases, as indicated by this press release or by any forward-looking statements made by, or on behalf of, Royal Host, and there can be no assurance that Royal Host will be able to repurchase its Units as set out herein. These factors include, but are not limited to, the following: the need to obtain exemptions from or approval of applicable regulatory authorities including provincial securities commissions, the satisfaction or waiver of various conditions customary for transactions of this nature, market forces, the financial strength of Royal Host and other factors discussed in Royal Host's Annual Information Form and other filings with applicable securities regulators. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those indicated in any forward-looking statements. Royal Host disclaims and does not assume any obligation to update these forward-looking statements, except as expressly required by applicable securities laws.

Contact Information

  • Royal Host Real Estate Investment Trust
    A. Brad Cann, C.A.
    Executive Vice President and Chief Financial Officer
    (403) 259-9800
    (403) 259-8580 (FAX)
    Website: www.royalhost.com