Canadian Hotel Sells Interest In Timeshare Company

Royal Host Real Estate Investment Trust shifts corporate focus.

In an era when most hotel companies are embracing the idea of interval timeshare, condotels, and other vacation ownership products as part of their portfolio of services, Canada’s Royal Host hotels are getting out of the timeshare vacation business. Royal Host Real Estate Investment Trust announced that it has sold its timeshare company business, effective as of December 31, 2006.

The sales price of $1.25 million (cash) includes all of the timeshare operations managed by the Royal Host company except for the Grand Okanagan Lakefront Resort and Conference Center, located in Kelowna. According to the president and chief operating officer of Royal Host, Michael L. Jackson, “The successful completion of this transaction is consistent with our decision to focus on our core business of hotel ownership, management, and franchising.”

The Royal Host company presently owns 37 hotels, which offer a total of 4,500 rooms. Additionally, they manage hotel properties for third parties and have franchises located in 110 locations. Fifteen Royal Host properties are owned under the brands Travelodge and Thriftlodge.

Does this sale signal a waning in the enthusiasm major hotel companies have been exhibiting for the timeshare vacation industry? Not in the least. The divestiture of their timeshare resorts by Royal Host is simply one company’s way of refining their niche in today’s competitive market.

At this time, the name of the new property owners has yet to be released.