NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  ROYAL HOST REAL ESTATE INVESTMENT TRUST

TSX SYMBOL:  RYL.UN
TSX SYMBOL:  RYL.DB
TSX SYMBOL:  RYL.DB.A

JANUARY 18, 2005 - 14:23 ET

Royal Host REIT Announces January 2005 Distribution of 
$0.03 to Unitholders

CALGARY, ALBERTA--(CCNMatthews - Jan. 18, 2005) - Royal Host Real Estate 
Investment Trust (TSX:RYL.UN) (TSX:RYL.DB) (TSX:RYL.DB.A) (REIT) has 
declared its January 2005 distribution of $0.03 per unit payable 
February 28, 2005 to Unitholders of record as of February 15, 2005. This 
distribution is the 87th consecutive monthly distribution to the 
Unitholders and brings the total funds distributed by Royal Host to 
$5.51 per unit since inception. A portion of the 2005 distribution will 
be eligible for tax deferral.

Royal Host REIT owns 38 hotels, manages 142 properties and franchises 
120 locations for over 20,000 guestrooms in the mid-market to upscale 
segments. Royal Host owns the master franchise rights for the Travelodge 
brand in Canada and provides hotel and resort management services for 
its portfolio and to third party properties.

Royal Host is committed to creating stable and repeatable earnings 
through high quality assets, efficient operations and exceptional 
people. Through strategic management and growth of its assets and 
ongoing training, communication and teamwork, it will continue to 
achieve ongoing improvements to its bottom line results. Royal Host 
units, convertible debentures and convertible debentures series A, are 
traded on the Toronto Stock Exchange under the trading symbols "RYL.UN", 
"RYL.DB" and "RYL.DB.A", respectively.

-30-