• authored by press
  • published Wed, May 11, 2005

Mondo Condo 8.5 - The Royal Host amputation

Hello all.

I'm using the Mondo Condo name on this thread but really don't want to be disrespectful to Hugh Finnamore by it. So I went with #8.5. He can have #9 all to himself if he wishes. Although he mightl have to deal with the 463 other MFD members who contributed words like the, and, and Joe, etc. to parts 1-8. They might want in on #9. Joe will need lots of pencils and writing space.

Well today was the day of the Royal Host AGM down at the Convention Centre. A boring event to most, but one that I could not miss because there is always something to learn. So with my cufflinks and Armani glasses (worn just for looks and distance) I headed down to see the big boys.

Arriving a fashionably (very fashionably of course) 10 minutes late, I was greeted by my old friend and General Manager Jim Kerstens just outside the doors. Now Jim and I engaged in a long enjoyable conversation which kept me from actually entering the meeting. I couldn't have run into a nicer 'security guy'. I'm sure he understands that I really didn't care to go inside... hopefully he was entertaining me, rehashing stuff that he knows, because he wanted to and not just under order. I did learn that he is on my email list, but wants me to change the addy... the wife thingie... no prob Jim!

One of the Jim conversation highlights was the pinpointing of the start and cause of this insanity. It all came back to JOE IERADI. The comment was... with anybody but Joe, this doesn't happen. When Joe was given his dream job of sitting in a 10th floor office and having a free house account, life was good. Add a couple hot looking women to keep him company... OK, life was great. What screwed him? He and his staff would come down daily to charge meals to their account. So?

They were rude to staff... and they didn't tip. Try doing that for weeks on end and see where it gets you fast. Mobsters for years knew the value of tipping well. It makes the pain of the regular screwing easier to take. Criminal goodwill. Didn't Joe's buddies clue in this nowhere-close-to-a-wiseguy to this little bit of knowledge? Or did he confuse himself? Either way, it was fun reminiscing with the old boss.

Early on in the chit-chat with Jim Greg Royer came over to greet me, and to be honest, I didn't recognize him right away. He looked good but damn, he's greyed a bit since last summer... or he's just quit the Grecian Formula. Anyway Greg expressed his wish to talk with me but I got the vibe that he didn't. He did say that he does get my email, doesn't respond... and will continue to not respond. I figured that already, so no biggie.

I spent about 90 minutes hanging out and people watching. The meeting was pretty small with mostly RH big-wigs running around. Greg's brother Terry was there looking like a sad Borg-wannabe. You know those people with the cell phone earpiece that looks like cheap metal attached to the skull. Fashion crime!! I recognized Christine Grant, the former Mondo Condo controller. She didn't acknowledge my existence which bruised my ego because I think I'm somewhat cuter than the plague. And to think I haven't ever publicly stated that she is the one ultimately responsible for all the ESA bullshit the employees put up with. And I've never said that the employees think she's been screwing us over for years. Never said any of that. So why would she not say hello??


Greg Royer gave me two minutes of his time... after the AGM and just before their board meeting was about to begin. George Armoyan, who skipped the AGM had just arrived as well. I had commented to Jim that it's funny to look at that guy and immediately think "there walks 1/5 of the company".

Now Greg is a smart guy and I know he's only going to give up information that could help him. So he approached me and freely offered (paraphrased)...

"We've got a brand new board. First meeting. Three directors have been replaced".

Of course my next question was who, knowing he's telling me this for a reason... it's like we're both having a conversation knowing the questions and answers far ahead of time.

First name and oh so obvious in a damage control type of way. Gone are...


Ron Ghitter - Chairman *
Ron Ghitter is an officer and principal shareholder of Certus Developments Inc., an operating real estate development company. He is a successful lawyer, business executive and consultant, and has served on a number of corporate boards of directors. Ron has more than 25 years of experience in real estate development law and is former Executive Vice President, Development for Trizec Corporation. He is widely known and respected for his contribution to public service, which included seven years as a member of the Senate of Canada.

THEY DUMPED A SENATOR!! One day they pump him and the next... bye-bye. Hmmmm... unfortunately this bio doesn't include his roll as past president and director of Penreal Advisors Ltd.... good friends and advisors to land-scammers Joe Chetti and our pension plan boys.

I guess we're now learning who the real and original Quim (Quim Investments) are.

This guy got dumped. Not sure why, but we should assume for now that he's a Quim fall-guy too...


Gordon Pridham *
Gord Pridham is President of Edgewater Capital. He has more than 25 years experience in Canadian and international financial services and has managed the investment banking groups at national and international firms. Most recently he was President and CEO of IPC Securities Corp. He has led many significant public real estate financings and advisory assignments in recent years.

There was a third... Dennis Hearn, but Greg wanted to make clear that it was a very recent decision due to health.

Unfortunately, the biggest Quim Randy Royer was not present. Apparently he still sits on the board (according to the site) but seems to be a persona non grata. Sort of like the embarassing relative that you still have to keep around to save face.

No idea who the new board members are, but I really am enjoying this public 'amputation' of those now fingered as responsible. I think that Greg is doing a fine job of assessing blame and trying to direct it away from himself. Peter Sikora the CFO was there so he must be playing the "I was just Quim's quim" game as well. Sort of the same as Joe Ieradi is doing. And they are all dumping on the UFCW. It's an every man for himself type of deal. Sure to be fireworks.

On a side note, Greg asked me if I've found any work. I didn't have the heart to tell him. When I feel like it, I now show up at a friends law firm whenever I want and get paid damn well... to learn. Yesterday we had Joe Ieradi playing on the office computer. So the education and laughs go both ways! What is really funny though are the insane fees that I see being charged for the easiest things, like writing a simple paragraph long letter (ex. a doctor's comment). Easy trip digits.

Damn, Hugh Finnamore should bill Royal Host, UFCW and Westmount millions for all the writing and info done for them and their lawyers. And to think that these assholes will spend more on legal fees in a few days than what it would have taken to somewhat fairly compensate the staff.

Bunch of quim.

  • posted by press
  • Wed, May 11, 2005 5:57pm

The financials are out

Wow, it's so specific! Why now?? I'm almost expecting a severance breakdown soon. Don't disappoint us Greg.


On February 23, 2005, the Travelodge North York hotel was sold to a condominium developer. Under the agreement of purchase and sale, we received $10.8 million for our 50% interest in the property. Payment was made by way of $7.0 million in cash and a $3.8 million vendor take-back
mortgage. The vendor take-back mortgage is secured by the property, bears interest at 8.0% and has a 60-day term, which has been subsequently extended until proceeds from construction financing are advanced on the condominium development. In addition, we received a subordinated vendor take-back mortgage for a maximum of $2.0 million to recover certain costs associated with closing the hotel. As at March 31,
2005, $1.8 million of the subordinated vendor take-back mortgage was recognized and included in Long-term Notes Receivable and Other Assets,
as was a corresponding recovery of costs included in Hospitality Expenses. Cash proceeds from the transaction were used to repay a $5.5 million mortgage on the property and for general corporate purposes.

I like this section. Sounds like the amputation is all in the mind. A reverse take on the people that believe they still have limbs...



Subsequent to March 31, 2005, we, together with a joint venture partner, finalized a non-revolving $28.0 million financing arrangement consisting
of a $20.0 million construction loan and an $8.0 million mezzanine loan. Proceeds from this financing will be used to complete construction of the Royal Private Residence Club.

Subsequent to March 31, 2005, we also transferred beneficial ownership of a parcel of land adjacent to the Grand Okanagan Resort and Conference
Centre to the Joint Venture, as described above under "Investing Activities", pursuant to an agreement between the parties.

Does corporate 'cash' ever exist? I'm just bringing this stuff up because of the joint venture and Joe similarities (these guys got a new parkade though!). Am I stretching Greg?? You know, like a yawn and a stretch.



A subsidiary of Royal Host is participating in a joint venture to develop the Royal Private Residence Club on a portion of the property at the Grand Okanagan Lakefront Resort and Conference Center in Kelowna, British Columbia for resale. Property under development reflects the costs incurred to date to develop the property. Construction of the
first phase of the project, a parkade, commenced in January 2004 and was completed in October 2004. Construction on the residence units commenced in May 2004. All costs incurred have been capitalized to property under development.

As the project is still in the development phase during the first quarter of 2005, no revenue has been recognized. Revenue from the sale of land or property is recorded on closing or, where sold by way of an agreement of purchase and sale, when the agreement is duly executed and delivered. Profit from the sale of land or property is recorded on closing or, where sold by way of an agreement of purchase and sale, when the collection of the sale proceeds is reasonably assured and all other
material conditions are met. As a joint venture participant, Royal Host is subject to the normal development risks associated with property
development activity.

As stated in Note 2a), Royal Host consolidates the results of this joint venture. The $12,033,000 (2004 - $9,917,000) minority interest in joint
venture on the interim consolidated balance sheet as at March 31, 2005 represents the portion of net assets of the joint venture not owned by Royal Host.

In April 2005, Royal Host, along with its joint venture partner, entered into a non-revolving $28.0 million financing arrangement consisting of a
$20.0 million construction loan and an $8.0 million mezzanine loan. The loan proceeds will be used to complete the project.

  • posted by press
  • Wed, May 11, 2005 6:07pm

and the new Trustees are...


MAY 11, 2005 - 19:15 ET

Royal Host Announces New Trustees

CALGARY, ALBERTA--(CCNMatthews - May 11, 2005) - Royal Host Real Estate Investment Trust (TSX:RYL.UN) (TSX:RYL.DB) (TSX:RYL.DB.A) announced the election at today's annual meeting of three new trustees: Hugh Smith, Q.C., Stan Spavold, C.A. and Melinda M. Lee, C.A. The three new trustees join newly appointed Chairman Alvin Poettcker, who has been a trustee since the inception of Royal Host, and Greg Royer, President and CEO. In addition George Armoyan, Terrance Royer and Randy Royer will be continuing as trustees.

It was quick, like a sharp-edge guillotine chopping off the head... a flush of the system. No care or sayonara to the old guys.

Sort of like what they did with the Mondo Condo Travelodge staff. The more things change, the more they stay the same.

  • posted by press
  • Fri, May 13, 2005 9:02am

Message to Greg Royer:

I listened to the conference call yesterday. You and Sikora sounded really smooth (insert as much sarcasm as you'd like).

The opening comments about the hotel and the great month of February really drove home the screwing that you laid on the workers in relation to the ESA and the bullshit that went on during that time. I won't comment on your 'staff morale' comment... yet. But I'm not sure if you caught the irony in the last month being so good. Tons of upside to that hotel that you missed out on, huh?

You were questioned about the board. Didn't come across too well. Not easy to hide all that shit is it? The fact that you won't see any Joe money... the fact that original $5.5M value of the hotel's 50% is all that you really have on paper... the fact that you've just shifted the scam and numbers to Kelowna. Run, Royer, hide. Peek-a-boo, we see you!! You're a tall guy, you know.

I can't comment on this too much yet, because I gotta run. But I encourage anyone with a passing interest in this story to listen to the conference call at 1-866-518-1010 or 1-416-695-5275. The playback company will ask for your name and then connect you. It's available there until May 19th. The probably-boring-to-a-mondo-condo-outsider conference call is actually really interesting... when you know they are sweating and trying to cover-up a bunch of stuff. Routine numbers questions made them look stupid. All the comments on the board change are great to listen to.

Oh Greg. It might have greyed, but you still have some left. Think positive!

And send us a proper breakdown that shows the screwjob you did on us by not including February in the severance calculation.

It'll help you feel better.

  • posted by siggy
  • Fri, May 13, 2005 10:21am

Thank-you Discontinued Statistic for posting the conference number - boring and fun all in one, who knew?

*1 - yes this question is for Greg - I was wondering what the uhs and ums conference protocol is for RIET - can you quantify that for us?

  • posted by press
  • Fri, May 13, 2005 3:32pm

They posted the conference call online...

32kbps is good enough. I liked it so much I downloaded the 96kpbs.

  • posted by press
  • Sat, May 14, 2005 9:48am


Hey assumptions work once in awhile. And any investigations and lawsuits that take place love to see loose ends tied up...


Gordon Pridham *
Gord Pridham is President of Edgewater Capital. He has more than 25 years experience in Canadian and international financial services and has managed the investment banking groups at national and international firms. Most recently he was President and CEO of IPC Securities Corp. He has led many significant public real estate financings and advisory assignments in recent years.

Investment Planning Counsel™
Head Office

2680 Skymark Ave, Suite 700,
Mississauga, Ontario L4W 5L6

Phone: (877) 212-9799 / (905) 212-9799
Fax: (905) 212-9798

A reverse number search on both won't work. So let's check the addy and see who's a neighbour or in the area?? Wow, why not just call these guys. Joe Chetti and the CCWIPP boys sure do...

Bentall Real Estate (just call them Penreal)
2680 Skymark Avenue,

Mississauga, ON L4W 5L6

Bentall Real Estate (just call them Penreal)
(905) 565-6195
171 Ambassador Drive
Mississauga, ON

Bentall Real Estate Services (just call them Penreal)
2000 Argentia,
Mississauga, ON
L5N 1P7

Bentall Real Estate Services Lp (just call them Penreal)
3184 Ridgeway Drive,
Mississauga, ON L5L 5S7

Bentall Real Estate Services LP - Bentall Retail Services LP (just call them Penreal)
(416) 674-7707
10 Carlson Court
Etobicoke, ON

Tons of nooses to go around.

Greg Royer, you're providing us with good entertainment. You spoke and stammered well of these board guys after you dumped them from the board. But we also have Joe, his Westmount buddies and all the CCWIPP guys competing in the 'save my own ass' race.

Work harder... it's getting fierce out there!

(Armani glasses)

  • posted by remote viewer
  • Sat, May 14, 2005 4:09pm

Well as they say f*ck a duck. What a riot. The wagons are circling for sure. For some reason I think that Joe Ieradi's firm Cherry Hill Investments is hooked up with the Chetti businesses. Chetti, Cherry...Ieradi...what's it matter. These guys never thought, never dreamed for a minute that anyone would or could ever put all these pieces together - and have such a good time doing it.

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