HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 21, 2012) - Royal Host Inc. ("Royal Host") (RYL.TO)(RYL-DBB.TO)(RYL-DBC.TO)(RYL-DBD.TO) announced today that the Toronto Stock Exchange ("TSX") has accepted Royal Host's Notice of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, from time to time, as Royal Host considers advisable, common shares ("Common shares") (RYL.TO). The total number of issued and outstanding common shares is 17,586,175.
As of August 20, 2012, the public float issued and outstanding is 12,292,607 common shares. Royal Host intends to purchase for cancellation up to a maximum of 1,229,260 common shares, being no more than 10% of Royal Host's public float outstanding on the date hereof, calculated in accordance with the rules of the TSX.
The price which Royal Host will pay for any common shares purchased by it will be the prevailing market price of the common shares on the TSX at the time of such purchase. The actual number of common shares that may be purchased for cancellation and the timing of any such purchases will be determined by Royal Host.
The Bid will commence on August 23, 2012 and will terminate on August 22, 2013 or such earlier time as the Bid is completed or terminated at the option of Royal Host. The purchases will be effected through the facilities of the Toronto Stock Exchange.
Management of Royal Host believes that, from time to time, the market price of the common shares may not fully reflect the underlying value of the common shares and that at such times the purchase of common shares would be in the best interests of Royal Host. Such purchases will increase the proportionate interest of, and may be advantageous to, all remaining shareholders.
Royal Host has made no purchases of its common shares during the past twelve months. The average daily trading volume for six months prior to the date hereof was 9,688 common shares. The daily maximum repurchase volume will be no more than 2,422 common shares.
About Royal Host
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 independently branded. 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", "does not anticipate", "believe", "estimate", "forecast", "intend", "expect", "does not expect", "could", "may", "would", "will", "should", "budgeted", "plan" or other similar terms and expressions 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.
Readers are therefore cautioned that Royal Host's expectations, estimates and assumptions, although considered reasonable, may prove to be incorrect and readers should not place undue reliance on forward-looking statements.
Forward-looking statements contained herein are not guarantees of future performance and involve certain risks, uncertainties, and other factors that are difficult to predict, and could result in the outcome of such events being materially different from those intended, planned, anticipated, believed, estimated, or expected in this news release. Such factors and assumptions include, but are not limited to, general economic conditions, levels of travel in Royal Host's key market areas, political conditions and events, competitive pressures, changes in government policy or regulations, and lodging industry conditions. Royal Host does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances, unanticipated events or circumstances, or should its estimates or assumptions change, after the date hereof, except as expressly required by law.
This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.