InnVest Real Estate Investment : REIT Announces Court Approval of Arrangement with Bluesky Hotels and Resorts Inc

3f209ca9-4dd2-4d91-8577-83cdab0b0992.pdf For Immediate Release INNVEST REAL ESTATE INVESTMENT TRUST ANNOUNCES COURT APPROVAL OF ARRANGEMENT WITH BLUESKY HOTELS AND RESORTS INC. Toronto, Canada (June 29, 2016) - InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) is pleased to announce that further to yesterday's announcement, a final order of the Alberta Superior Court of Justice (Commercial List) (the "Court") for the approval of the plan of arrangement (the "Arrangement"), pursuant to which Bluesky Hotels and Resorts Inc. has agreed to acquire all of the issued and outstanding units of InnVest for $7.25 in cash per unit, was received from the Court.

The closing of the Arrangement remains subject to Canadian regulatory approvals under the Investment Canada Act and the satisfaction or waiver of other customary closing conditions. Assuming receipt of such approvals and the satisfaction or waiver of all other conditions to closing, InnVest expects that the Arrangement will close in the third quarter of 2016.

TRUST PROFILE

InnVest Real Estate Investment Trust is an unincorporated open-ended real estate investment trust which owns a portfolio of 109 hotels across Canada representing over 14,500 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.E, INN.DB.F and INN.DB.G.

For further information: Investors:

Drew Coles, Chief Executive Officer, Tel (416)-607-7100; or

Chantal Nappert, Vice President Finance and Investor Relations, Tel: (416) 607-2331 Website: www.innvestreit.com

Media Inquiries:

Riyaz Lalani, Bayfield Strategy, Inc., Tel: (416) 907-9365, rlalani@bayfieldstrategy.com

Cautionary Note Regarding Forward-Looking Statements

Except for statements of historical fact, certain information contained herein constitutes "forward- looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to: statements concerning the proposed Arrangement referred to in this press release, including necessary court and regulatory approvals and other conditions required to complete the Arrangement; and any other statements regarding InnVest's expectations, intentions, plans and beliefs. Generally, forward-looking information can be identified by the use of forward- looking terminology such as "will", "occur", "expect", "believe", "anticipate", "intend",

"continue", or the negative thereof or other similar expressions. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made including, but not limited to, assumptions relating to the following: business and economic conditions affecting InnVest's operations will continue substantially in their current state and that there will be no significant event affecting InnVest occurring outside the ordinary course of InnVest's business; that there will be no material delays in obtaining required court and regulatory approvals in connection with the Arrangement and that such approvals will be obtained; that the Arrangement agreement will not be amended or terminated; that there will be no material changes in the legislative, regulatory and operating framework for InnVest and its businesses; and that all other conditions precedent to completing the Arrangement will be met. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including, but not limited to, risks relating to: the parties' ability to satisfy conditions in the Arrangement agreement; the occurrence of any event, change or other circumstance that could give rise to the termination of the Arrangement agreement; material adverse changes in the affairs of InnVest; the parties' ability to obtain required court and regulatory approvals in order to complete the Arrangement; and other risks described in InnVest's current annual information form posted under its profile on SEDAR at www.sedar.com. Although management of InnVest has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that could cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. InnVest does not undertake to update any forward-looking information, except in accordance with applicable securities laws.