Royal Host Real Estate Investment Trust

Royal Host Real Estate Investment Trust

February 20, 2008 13:41 ET

Royal Host REIT Announces Sale of Travelodge Hotel Burlington on the Lake

CALGARY, ALBERTA--(Marketwire - Feb. 20, 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 122-room Travelodge Hotel Burlington on the Lake to an unrelated party for $24.8 million, resulting in a gain of over $13.0 million. As the property was unencumbered, proceeds from the sale will be used for general corporate working capital purposes including Royal Host's recently announced Substantial Issuer Bid. The hotel will continue to be operated as a Travelodge Hotel.

"Management reviewed opportunities to maximize the value of this property and determined that accepting this offer best served the long-term interests of our Unitholders. We are pleased to have been able to obtain a price that crystallizes the value of both the present operations as well as its redevelopment potential without incurring the risks inherent with development projects," said Patrick Lambie, Executive Vice President of Royal Host. "We would like to express our gratitude to the team at the Travelodge Hotel Burlington on the Lake for their dedication and professionalism," he added.

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

Subsequent to this transaction, Royal Host owns a diversified portfolio of 36 properties, comprising approximately 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 the Trust, 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.

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)