Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

June 09, 2008 17:57 ET

Royal Host REIT Announces Sale of Holiday Inn Edmonton- the Palace Continues to Execute Opportunistic Strategy

CALGARY, ALBERTA--(Marketwire - June 9, 2008) - Royal Host Real Estate Investment Trust ("Royal Host") (TSX:RYL.UN) (TSX:RYL.DB.A) (TSX:RYL.DB.B) (TSX:RYL.DB.C) (TSX:RYL.DB.D) today announced that it has closed on the sale of the 137-room Holiday Inn Edmonton - The Palace to a third party for $25 million, resulting in a gain on sale of approximately $13 million. As the property was unencumbered, proceeds are directly available to the Trust.

"The Edmonton Holiday Inn has been an excellent investment for Royal Host," said Mr. Patrick Lambie, Executive Vice President of Royal Host. "This transaction represents a significant premium for this asset and, as such, management determined that crystallizing its value was in the best interests of the organization. Our demonstrated ability to redeploy capital in an effective manner affords us the ability to take advantage of opportunities of this nature," he added.

Royal Host is a uniquely diversified hospitality trust that delivers Unitholder value through hotel ownership, investment, management and franchising. Royal Host's portfolio of 32 operating hotels is well represented throughout Canada operating under a variety of recognizable brands as well as a number of unbranded properties. The Trust's hotel portfolio is further enhanced by a stable franchising business, a successful hotel management operation, and a portfolio of publicly-traded securities from within the hospitality and service sectors.

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.

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)