CHIP REIT announces pro rata distribution



    HOT.un
    HOT.db.a

    VANCOUVER, Sept. 7 /CNW/ - Canadian Hotel Income Properties Real Estate
Investment Trust ("CHIP REIT" or the "Trust") today announced a pro rata
distribution of $0.05387 per unit to unitholders of record immediately prior
to 5:00 p.m. (Toronto time) on September 20, 2007. Payment will be made on
September 25, 2007.
    The pro rata distribution is in accordance with the offer by BFO
Acquisition Limited Partnership (the "Offeror") to purchase the units and 6.0%
convertible debentures of the Trust for $19.10 in cash per unit and $1,625.53
in cash per $1,000 principal amount of 6.0% convertible debentures plus
accrued and unpaid interest (the "Offer"). The Offer is scheduled to expire at
5:00 p.m. (Toronto time) on September 20, 2007, unless the Offer is extended
or withdrawn. The completion of the Offer is subject to the Minimum Tender
Condition and other closing conditions described in the take-over circular
relating to the Offer. The Offeror is not entitled to take-up any units
deposited under the Offer until after 5:00 p.m. (Toronto time) (which is the
distribution record date) on September 20, 2007.
    As previously announced, CHIP REIT's Board of Trustees has unanimously
determined that the Offer is in the best interests of CHIP REIT and its
unitholders and 6.0% convertible debentureholders and has unanimously
recommended that the Trust's unitholders and 6.0% convertible debentureholders
accept the Offer and deposit their units and 6.0% convertible debentures to
the Offer.

    CHIP REIT is an integrated hotel real estate investment trust focused on
mid-market and upscale full-service hotels. Through its large, diversified
portfolio, CHIP REIT provides investors with stable income and growth
potential through acquisitions, repositioning and franchising under banners
that include Delta, Radisson, Marriott and Hilton. CHIP REIT currently owns
and manages 32 hotels with approximately 7,700 guestrooms. In 2006, CHIP REIT
was named "Hotel Company of the Year" by Hotelier Magazine, becoming the first
REIT to win a Pinnacle Award in the hospitality industry's national
recognition program. CHIP REIT units and convertible debentures trade on the
Toronto Stock Exchange under the symbols HOT.un and HOT.db.a.

    %SEDAR: 00005031E




For further information:

For further information: Kevin Grayston, Executive Vice President &
Chief Financial Officer, Phone (604) 646-2447, Fax (604) 646-2404,
www.chipreit.com

Organization Profile

Canadian Hotel Income Properties Real Estate Investment Trust

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