InnVest Real Estate Investment Trust Announces Closing of Private Placement and $63 Million Equity Offering

TORONTO, ONTARIO--(Marketwired - Nov. 26, 2014) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) announced today that it has closed its previously announced public offering of 12,050,000 units, on a bought deal basis, at a price of $5.25 per unit for aggregate gross proceeds of $63,262,500 (the "Public Offering"). The Public Offering was conducted through a syndicate of underwriters co-led by RBC Capital Markets, BMO Capital Markets and CIBC World Markets, with RBC Capital Markets and BMO Capital Markets acting as bookrunners.

Highlighting their support and commitment to the long-term growth of InnVest, funds managed by KingSett Capital and Orange Capital, LLC, and Westmont Hospitality Group, three of InnVest's largest unitholders, together with certain trustees and officers of InnVest also purchased an aggregate of approximately $47 million in units by way of concurrent private placement at the same price per unit as those sold under the Public Offering (the "Concurrent Private Placement").

InnVest intends to use the net proceeds from the Public Offering and Concurrent Private Placement to fund the announced acquisition of the Hyatt Regency Vancouver, for capital expenditures, debt repayment and potential future acquisitions, including the previously announced participation in the acquisition of the Fairmont Royal York Hotel in downtown Toronto.

FORWARD LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements. These forward-looking statements include statements with respect to InnVest's ability to complete the acquisition of the Hyatt Regency Vancouver and the announced participation in the acquisition of the Fairmont Royal York Hotel and the use of proceeds of the Public Offering and Concurrent Private Placement. These forward-looking statements are based on current expectations of management and involve risks and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are InnVest's capital requirements and available sources of funds, changes to InnVest's business strategy (including InnVest's ability to divest of assets, its intent to internalize asset management and return expectations on capital investments completed); real estate investment risks, hotel industry risks, competition and the status of InnVest as a REIT for Canadian federal income tax purposes in any year. These and other factors are discussed in InnVest's annual information form for the year ended December 31, 2013, which is available at www.sedar.com. In making such forward-looking statements, management has relied upon a number of material factors and assumptions, including with respect to: general economic and financial conditions; its ability to complete the acquisition of the Hyatt Regency Vancouver and the announced participation in the acquisition of the Fairmont Royal York Hotel, and the use of proceeds of the Public Offering and Concurrent Private Placement. Although management of InnVest believes that the expectations with respect to such forward-looking statements are reasonable, such forward-looking statements are subject to known and unknown risks and uncertainties and, accordingly, there can be no assurance that such expectations will prove to be correct. Readers are cautioned that the foregoing list is not exhaustive. The forward-looking statements included herein are made as of the date hereof and InnVest disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by applicable securities law.

INNVEST PROFILE

InnVest Real Estate Investment Trust is an unincorporated open-ended real estate investment trust which owns a portfolio of 110 hotels across Canada representing approximately 14,000 guest rooms operated under internationally recognized brands. InnVest also holds a 50% interest in Choice Hotels Canada Inc., one of the largest franchisors of hotels in Canada.

InnVest's units and convertible debentures trade on the Toronto Stock Exchange (the "TSX") under the symbols INN.UN, INN.DB.D, INN.DB.E, INN.DB.F and INN.DB.G.