RHR Rmr Hospitality And Real Estate Fund

RMR Hospitality and Real Estate Fund (AMEX: RHR) today announced that it has commenced litigation against Bulldog Investors General Partnership, a hedge fund controlled by Mr. Phillip Goldstein and various other entities affiliated with Mr. Goldstein (collectively �Bulldog Investors�). The purpose of this litigation is to enforce a provision in the organizational documents of RHR which restricts share ownership to 9.8% of RHR outstanding shares by any one shareholder of RHR or group of shareholders acting together. RHR is organized as a Massachusetts business trust with transferable shares. The RHR Agreement and Declaration of Trust provides that no shareholder (or group of shareholders working together) may own more than 9.8% of RHR�s outstanding shares. RHR believes that this share ownership limitation helps it to continue its business plan to invest in real estate investment trusts (�REITs�) and otherwise to pay high dividends and preserve shareholder capital. Bulldog Investors reportedly has acquired approximately 14% of RHR�s outstanding shares; and, despite repeated requests from RHR, Bulldog Investors has refused to comply with the share ownership limitation and other requirements of RHR�s trust agreement. RHR Hospitality and Real Estate Fund is a closed end mutual fund which invests in securities issued by companies in the hospitality and real estate industries, including REITs. RHR�s primary investment goals are to pay high current dividends to shareholders and to preserve capital. WARNING REGARDING FORWARD LOOKING STATEMENTS THE FOREGOING PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON RHR�S PRESENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND THEY MAY NOT OCCUR. FOR EXAMPLE: THIS PRESS RELEASE STATES THAT RHR HAS COMMENCED LITIGATION AGAINST BULLDOG INVESTORS TO ENFORCE ITS 9.8% SHAREHOLDER LIMITATION AND IMPLIES THAT RHR BELIEVES THIS LITIGATION WILL SUCCEED. THIS LITIGATION HAS JUST COMMENCED. BULLDOG INVESTORS HAS NOT YET ANSWERED THE COMPLAINT. DISCOVERY AND DECISIONS BY JUDGES DURING LITIGATION MAY RESULT IN UNINTENDED CONSEQUENCES. RHR MAY NOT SUCCEED IN THIS LITIGATION. LITIGATION CAN BE EXPENSIVE. ACCORDING TO PUBLISHED REPORTS, BULLDOG INVESTORS HAS A HISTORY OF BEING INVOLVED IN EXPENSIVE AND TIME CONSUMING LITIGATION AND PROXY CONTESTS. THE EXPENSES OF LITIGATION OR A PROXY CONTEST WITH BULLDOG INVESTORS COULD HAVE A MATERIALLY ADVERSE IMPACT UPON RHR�S FINANCIAL POSITION AND RESULTS OF OPERATIONS. RHR IS UNABLE TO PREDICT THE COSTS WHICH IT MAY INCUR IN CONNECTION WITH, OR AS A RESULT OF, ITS LITIGATION AGAINST BULLDOG INVESTORS. THIS PRESS RELEASE STATES THAT RHR�S PRIMARY INVESTMENT GOALS ARE TO PAY HIGH CURRENT DIVIDENDS TO RHR SHAREHOLDERS AND TO PRESERVE RHR�S CAPITAL. THESE GOALS MAY NOT BE ACHIEVED. IN FACT, THE LITIGATION WITH BULLDOG INVESTORS MAY ADVERSELY AFFECT RHR�S ABILITY TO ACHIEVE THESE GOALS. FOR ALL OF THESE REASONS, INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON RHR�S FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE. RMR Hospitality and Real Estate Fund (AMEX: RHR) today announced that it has commenced litigation against Bulldog Investors General Partnership, a hedge fund controlled by Mr. Phillip Goldstein and various other entities affiliated with Mr. Goldstein (collectively "Bulldog Investors"). The purpose of this litigation is to enforce a provision in the organizational documents of RHR which restricts share ownership to 9.8% of RHR outstanding shares by any one shareholder of RHR or group of shareholders acting together. RHR is organized as a Massachusetts business trust with transferable shares. The RHR Agreement and Declaration of Trust provides that no shareholder (or group of shareholders working together) may own more than 9.8% of RHR's outstanding shares. RHR believes that this share ownership limitation helps it to continue its business plan to invest in real estate investment trusts ("REITs") and otherwise to pay high dividends and preserve shareholder capital. Bulldog Investors reportedly has acquired approximately 14% of RHR's outstanding shares; and, despite repeated requests from RHR, Bulldog Investors has refused to comply with the share ownership limitation and other requirements of RHR's trust agreement. RHR Hospitality and Real Estate Fund is a closed end mutual fund which invests in securities issued by companies in the hospitality and real estate industries, including REITs. RHR's primary investment goals are to pay high current dividends to shareholders and to preserve capital. WARNING REGARDING FORWARD LOOKING STATEMENTS THE FOREGOING PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER FEDERAL SECURITIES LAWS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON RHR'S PRESENT BELIEFS AND EXPECTATIONS, BUT THEY ARE NOT GUARANTEED TO OCCUR AND THEY MAY NOT OCCUR. FOR EXAMPLE: -- THIS PRESS RELEASE STATES THAT RHR HAS COMMENCED LITIGATION AGAINST BULLDOG INVESTORS TO ENFORCE ITS 9.8% SHAREHOLDER LIMITATION AND IMPLIES THAT RHR BELIEVES THIS LITIGATION WILL SUCCEED. THIS LITIGATION HAS JUST COMMENCED. BULLDOG INVESTORS HAS NOT YET ANSWERED THE COMPLAINT. DISCOVERY AND DECISIONS BY JUDGES DURING LITIGATION MAY RESULT IN UNINTENDED CONSEQUENCES. RHR MAY NOT SUCCEED IN THIS LITIGATION. -- LITIGATION CAN BE EXPENSIVE. ACCORDING TO PUBLISHED REPORTS, BULLDOG INVESTORS HAS A HISTORY OF BEING INVOLVED IN EXPENSIVE AND TIME CONSUMING LITIGATION AND PROXY CONTESTS. THE EXPENSES OF LITIGATION OR A PROXY CONTEST WITH BULLDOG INVESTORS COULD HAVE A MATERIALLY ADVERSE IMPACT UPON RHR'S FINANCIAL POSITION AND RESULTS OF OPERATIONS. RHR IS UNABLE TO PREDICT THE COSTS WHICH IT MAY INCUR IN CONNECTION WITH, OR AS A RESULT OF, ITS LITIGATION AGAINST BULLDOG INVESTORS. -- THIS PRESS RELEASE STATES THAT RHR'S PRIMARY INVESTMENT GOALS ARE TO PAY HIGH CURRENT DIVIDENDS TO RHR SHAREHOLDERS AND TO PRESERVE RHR'S CAPITAL. THESE GOALS MAY NOT BE ACHIEVED. IN FACT, THE LITIGATION WITH BULLDOG INVESTORS MAY ADVERSELY AFFECT RHR'S ABILITY TO ACHIEVE THESE GOALS. FOR ALL OF THESE REASONS, INVESTORS SHOULD NOT PLACE UNDUE RELIANCE UPON RHR'S FORWARD LOOKING STATEMENTS IN THIS PRESS RELEASE.