IOT Innovotech Inc

InnVest Real Estate Investment Trust ("InnVest") (TSX:INN.UN) announced today
that its internal reorganization (the "Reorganization"), which was approved by
InnVest's unitholders at a special meeting on June 16, 2010, has been
successfully completed. InnVest pursued the Reorganization in order to become a
Qualifying REIT under Canadian income tax rules applicable to specified
investment flow-through (SIFT) entities.


The Reorganization has resulted in the following:



i.  the completion of certain transactions whereby InnVest transferred all
    of its directly and indirectly held operating assets to InnVest
    Operations Trust, a newly-formed taxable trust ("IOT"); and 
    
ii. the completion of certain transactions that resulted in each InnVest
    unitholder receiving one non-voting unit of IOT (an "IOT Unit") for each
    unit of InnVest (an "InnVest Unit") held immediately prior to the
    distribution. As of December 31, 2010, there were 89,474,691 issued and
    outstanding InnVest Units and, accordingly, the same number of IOT Units
    were distributed to unitholders. 
    



The InnVest Units and IOT Units are listed on the Toronto Stock Exchange (the
"TSX"). Each issued and outstanding InnVest Unit will commence trading together
with an IOT Unit as a "Stapled Unit" under the symbol INN.UN at the opening of
the TSX on January 4, 2011.


As described in more detail in InnVest's management information circular dated
May 13, 2010 (the "Circular"), Part XIII.2 of the Income Tax Act (Canada) (the
"Tax Act") imposes a tax on each holder of InnVest Units that is a non-resident
of Canada or a partnership other than a Canadian partnership as described in the
Tax Act (a "Non- Resident Unitholder") equal to 15% of all or most of the fair
market value of the IOT Units at the time of their distribution.


It is estimated that each IOT Unit had a fair market value of $0.9585 at the
time of the distribution, and that Part XIII.2 non-resident withholding tax of
15% of this amount, or approximately $0.1438, is required to be paid by
Non-Resident Unitholders in respect of each IOT Unit distributed to them.
Non-Resident Unitholders are encouraged to consult their broker or investment
advisor with regard to arrangements for payment of this withholding tax.


Unitholders are encouraged to review in detail the Circular for more information.

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 annual
information form dated March 10, 2010 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(R), Holiday Inn(R), Quality Suites/Inn(R), Radisson(R), Delta(R),
Travelodge(R), Hilton(R) Staybridge Suites(R), Fairmont Hotels(R), Sheraton
Suites(R) and Best Western(R). InnVest's trust units and outstanding convertible
debentures trade on the Toronto Stock Exchange under the symbols INN.UN,
INN.DB.B, INN.DB.C, INN.DB.D, and INN.DB.E.

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