Lakeview Hotel REIT
TSX VENTURE : LHR.UN

Lakeview Hotel REIT

October 30, 2006 08:50 ET

Lakeview Announces $32 Million Private Placement

WINNIPEG, MANITOBA--(CCNMatthews - Oct. 30, 2006) -

This News release is not for dissemination in the United States or to any United States News Services

Lakeview Hotel REIT ("Lakeview" or the "REIT") (TSX VENTURE:LHR.UN) is pleased to announce that it has finalized the terms of the previously announced private placement of units. The Real Estate Investment Trust will issue 8,000,000 units at a price of $4.00 per unit, for gross proceeds of $32.0 million. Closing of the private placement is anticipated to occur on or about November 8th, 2006.

The Offering is being undertaken by a syndicate of agents co-led by Wellington West Capital Inc. and Desjardins Securities Inc. and including Westwind Partners Inc.

Lakeview intends to use the proceeds from the private placement to fund its active and on-going acquisition pipeline, including the three previously announced British Columbia hotel properties under contract, with an aggregate purchase price of approximately $26.5 million. The REIT has finalized the terms of the acquisitions of these properties and upon closing of the three acquisitions, the REIT will own 862 rooms in 12 hotels and will receive licensing income from an additional 356 rooms. Lakeview continues to benefit from a robust acquisition pipeline in its target markets and anticipates making further announcements in this regard in the near future.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities issued pursuant to this private placement by Lakeview have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

Lakeview REIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol "LHR.UN". Lakeview REIT receives income from ownership, management and licensing of hotel properties. Lakeview REIT's objective is to provide Unitholders with stable and growing cash distributions through investment in an expanding portfolio of hotel properties across Canada.

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