NEWS RELEASE:

CHIP Hospitality announces new GM for The Harbour Towers Hotel & Suites

VICTORIA, BC (August 31, 2007) – CHIP Hospitality is pleased to announce the appointment of David Rooper as the General Manager of the Harbour Towers Hotel & Suites.

Mr. Rooper joins the Harbour Towers Hotel & Suites from the Ramada Hotel and Conference Centre in Edmonton. Under his leadership as General Manager, he greatly improved the property’s Guest Satisfaction Index, as well as its Cultural Satisfaction Index. In addition, Mr. Rooper was charged with overseeing an ambitious capital improvement plan while further developing the property team.

“David has had proven success as a leader within CHIP Hospitality over a period of 7 years,” says Tony Cary-Barnard, Regional Vice President of Operations at CHIP Hospitality. “His success and experience, along with his knowledge of the Victoria market will bring tremendous value to the Harbour Towers team.”

Previously, Mr. Rooper has served as General Manager for several CHIP properties, such as the Red Deer Lodge and the Best Western Charlottetown. He has also held positions in Food & Beverage and Rooms Division throughout several hotels within BC. He also has actively participated in Travel and Tourism groups, including TourismVancouver Island.

Mr. Rooper returns to his roots by assuming his new position as he was born and raised in Victoria and started his career at the Harbour Towers Hotel.

The Harbour Towers Hotel & Suites is located just a few minutes from Victoria’s Inner Harbour and the downtown core. Standard rooms, Bachelor, One and Two Bedroom suites, and Penthouse suites are available, each featuring work desks, voicemail and complimentary high speed Internet access. The hotel offers full amenities including a restaurant, lounge, pool, athletic club and day spa. The Harbour Towers Hotel & Suites also provides full catering, banquet, and meeting services for up to 400 people.

CHIP Hospitality is one of Canada’s leading hotel management companies and currently manages more than 30 hotels and resorts in Canada with more than 7,700 rooms. The company manages independent hotels and hotels operating under major franchise brands including some Delta Hotels, Crowne Plaza, Radisson, Residence Inn by Marriott, Holiday Inn, Hilton, Quality, Gouverneur, Best Western, Ramada and Coast properties. A subsidiary of CHIP REIT, CHIP Hospitality uses management strategies, upgrades, repositioning and franchising to improve the operating performance of the properties in its portfolio to create value for its investors and owners. CHIP REIT units trade on the TSX under the symbol HOT.un, HOT.db and Hot.db.a.

NOTE TO EDITORS: Photo available upon request.

Media Contacts:

Holly Peterson, CHIP Hospitality
Tel: 604.646.8787 or 604.512.9198
hpeterson@chiphospitality.com

Caroline Thompson, Regional Director of Sales & Marketing
Northwest Region, CHIP Hospitality
Tel: 780.930.4038
cthompson@chiphospitality.com