TORONTO, ONTARIO–(Marketwire – July 22, 2010) –

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

InnVest Real Estate Investment Trust (“InnVest” or the “Trust”) (TSX:INN.UN) announced that it has reached an agreement with a syndicate of underwriters led by Scotia Capital Inc., acting as sole bookrunner, to issue to the public, subject to regulatory approval, on a bought-deal basis, $75 million aggregate principal amount of 6.00% convertible unsecured subordinated debentures due September 30, 2017 (the “Debentures”). The Debentures are convertible, at the option of the holder, into trust units of InnVest at $8.00 per trust unit.

InnVest will, by July 28, 2010, file with the securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada a preliminary short form prospectus relating to the issuance of the Debentures. Closing of the offering is expected to occur on or about August 13, 2010.

It is intended that the net proceeds from the offering of Debentures (after deducting the Underwriters’ fee and estimated offering expenses) will be used to redeem the outstanding Series A 6.25% Convertible Debentures, to repay other indebtedness and for general trust purposes.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been and will not be registered under the U.S. Securities Act of 1933 as amended and may not be offered or sold in the United States absent registration or pursuant to applicable exemption from registration.

FORWARD LOOKING STATEMENTS

Statements contained in this press release that are not historical facts are forward-looking statements which involve risk 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 real estate investment risks, hotel industry risks and competition. These and other factors are discussed in InnVest’s 2009 annual information form which is available at www.sedar.com or www.innvestreit.com. 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.

TRUST PROFILE

InnVest REIT holds Canada’s largest hotel portfolio together with an interest in Choice Hotels Canada Inc. the largest franchisor of hotels in Canada. The hotel portfolio currently comprises 144 hotel properties, with approximately 19,000 guest rooms, operated under internationally recognized franchise brands such as Comfort Inn®, Holiday Inn®, Quality Suites/Inn®, Radisson®, Delta®, Travelodge®, Hilton® Staybridge Suites®, Fairmont Hotels®, Sheraton Suites® and Best Western®. InnVest’s trust units and outstanding convertible debentures trade on the Toronto Stock Exchange under the symbols INN.UN, INN.DB.A, INN.DB.B, INN.DB.C, and INN.DB.D, respectively.