HALIFAX, NOVA SCOTIA--(Marketwire - April 25, 2012) - Royal Host Inc. (RYL.TO - News) (RYL-DBB.TO - News) (RYL-DBC.TO - News) (RYL-DBD.TO - News) ("Royal Host" or the "Company") announced today that it has secured a commitment to refinance the existing $20.4 million mortgage secured by its London Hilton and Ottawa Chimo hotels. The loan commitment is a five-year floating rate facility and includes a $20.7 million non-revolving loan and a $9.3 million non-revolving loan for the renovation and branding of the 256-room Chimo Hotel which is currently operated as an independent hotel. Funding of the facility is subject to customary closing conditions and is anticipated to be complete by the end of the second quarter. John Carnella, the Company's President and CEO commented, "This is a strategically important refinancing for us. The new financing allows us to extend our only meaningful mortgage maturity to a date beyond the maturity dates of all three series of our convertible debentures and, just as importantly, it provides us capital to renovate and upgrade one of our core properties. We are in the process of finalizing the terms of a franchise agreement for the Ottawa property with an international brand and expect that we will complete this by the time the refinancing is closed."
ROYAL HOST INC.
Royal Host is a diversified hospitality company that delivers shareholder value through hotel ownership, investment and franchising. The Company's hotels, which contain 3,092 rooms, are located in five Provinces and Territories across Canada. Twenty-two of the Company's hotels operate under internationally recognized brands such as Travelodge(R), Super 8(R), Holiday Inn(R), Hilton(R) and Country Inns & Suites(R). Two of the Company's hotels are unbranded. In addition to its real estate holdings, the Company owns and operates the Travelodge Canada franchise business which is currently comprised of over 90 hotels across nine Provinces and Territories.
Royal Host's common shares and convertible debentures are traded on the Toronto Stock Exchange under the trading symbols "RYL", "RYL.DB.B", "RYL.DB.C" and "RYL.DB.D" respectively.
This press release may contain 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.
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