Royal Host Real Estate Investment Trust says its trustees have decided to convert the hotel owner into a publicly traded dividend-paying corporation.
While Royal Host had previously said it would not convert in the near term, the trust said Monday that “the trustees have determined that a conversion at this time is appropriate to allow for a restructuring that will better achieve the objectives of the business and to take advantage of growth opportunities that exist.”
Most trusts plan to convert into corporations ahead of new tax rules that go into effect Jan. 1 that tax trusts as corporations.
Royal Host said it will mail an information circular to unitholders by early November and will hold a special meeting to vote on the plan by mid-December.
Royal Host operates a portfolio of Canadian hotels under a variety of well-known brands.
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