ADR - refers to the average daily room rate. This figure is a hotel revenue measurement and is calculated by dividing the gross room revenue by the number of occupied room nights sold during a specified time.

Full Service Property - a full service hotel provides additional services that add revenue. Examples of services include restaurants, banquets and conference facilities, business centres, etc.

Gross Book Value - the book value of Royal Host assets plus the amount of accumulated depreciation and amortization.

Hotel Businesses - the various businesses carried on at the hotel properties. This consists of all the assets involved in the operations of these properties (i.e. licenses, contracts, inventory and goodwill).

Hotel Management Agreements - hotel management agreements between each of the holding companies and the General Managers of the hotels. This agreement provides that the General Manager is retained by the holding companies.

Hotel Portfolio - includes the hotel properties and the associated businesses.

Hotel Properties - the real property, buildings, attached equipment and leasehold interests in Royal Host properties. This excludes the hotel businesses as described under “The Hotel Portfolio – Property Descriptions”.

Limited Service Property - a limited service hotel is primarily considered to be only the room. However, it may also include limited dining facilities such as continental breakfast services.

Occupancy Rate (%) - the occupancy rate of a hotel measures the number of hotel nights sold as a percentage of the number of room nights available. It is calculated by dividing the total number of rooms sold by the number of rooms available.

RevPAR - refers to the revenue generating effectiveness of a hotel property. It is calculated by multiplying the average daily room rate (ADR) by the occupancy rate.