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Press release from Marketwire

Amendments Affecting the Taxation of InnVest

Wednesday, July 20, 2011

Amendments Affecting the Taxation of InnVest13:19 EDT Wednesday, July 20, 2011TORONTO, CANADA--(Marketwire - July 20, 2011) - (TSX:INN.UN) – The Minister of Finance (the "Minister") announced today changes in, among other things, the tax treatment of real estate investment trusts that have issued "stapled" securities. If the Minister's announcement is enacted as proposed and no changes are made to the current "stapled" structure of InnVest Real Estate Investment Trust (the "REIT") and InnVest Operations Trust ("IOT"), whose units held by the public trade together on a stapled basis, then rents (and certain other amounts) paid by IOT to the REIT after July 20, 2012 would cease to be deductible in computing the income of IOT for Canadian income tax purposes.The REIT's management is currently in the process of reviewing the announcement, its potential impacts on the REIT and IOT and its options going forward.TRUST PROFILEThe REIT is an unincorporated open-ended real estate investment trust which owns a portfolio of 144 hotels across Canada representing approximately 19,000 guest rooms operated under internationally recognized brands. The REIT leases its hotels to IOT, a taxable investment trust. IOT indirectly holds all of the hotel operating assets, earns revenues from hotel customers and pays rent to the REIT. IOT also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada, and earns revenues from franchising fees.Each issued and outstanding REIT unit trades together with a non-voting unit of IOT as a "stapled unit" on the Toronto Stock Exchange (the "TSX") under the symbol INN.UN. InnVest REIT's convertible debentures trade on the TSX under the symbols INN.DB.B, INN.DB.C, INN.DB.D, INN.DB.E and INN.DB.F.FOR FURTHER INFORMATION PLEASE CONTACT: Kenneth GibsonInnVest Real Estate Investment TrustPresident and Chief Executive Officer(905) 206-7100(905) 206-7114 (FAX)ORTamara LawsonInnVest Real Estate Investment TrustChief Financial Officer and Corporate Secretary(905) 206-7100(905) 206-7114 (FAX)www.innvestreit.com