ROYAL HOST REAL ESTATE INVESTMENT TRUST ANNOUNCES DISTRIBUTION TO UNITHOLDERS

Press Release: Royal Host

July 13, 1999
CALGARY, ALBERTA--Royal Host Real Estate Investment Trust (Royal Host) has declared its July 1999 distribution of $0.10 per unit payable August 16, 1999 to unitholders of record as of July 21, 1999.

As disclosed in Royal Host's May 31, 1999 offer for 100 percent of the outstanding trust units of Canadian Hotel Income Properties Real Estate Investment Trust (CHIP), the record date for the July distribution is being set at July 21, 1999. This distribution date will ensure that CHIP and Royal Host unitholders are in as equal a position as possible with respect to future distributions from the combined entity in the event the offer is completed. With the July 21 record date for the July distribution, the next distribution will be for the month of August with a record date expected to be in early September,1999.

Royal Host is a closed-end real estate investment trust with a national portfolio of 36 hotels with over 4,400 guest rooms primarily in the upper mid-market and upscale market segments. Royal Host owns the Travelodge Master Franchise in Canada, provides hotel and resort management services, markets vacation intervals in hotels, resorts and luxury houseboats, and operates a facility for customers to trade and bank prepaid vacations.

Royal Host maximizes earnings while minimizing risk through efficient operations, strong marketing and a focus on providing travelers with superior accommodations and travel experiences. Royal Host units are traded on The Toronto Stock Exchange (RYL.UN).

Contact:

Royal Host Real Estate Investment Trust
Ellen Walsh
Director of Communications
(403) 258-5601
(403) 292-0922
investorinfo@royalhost.com
http://www.royalhost.com