Lakeview Hotel Real Estate Investment Trust - Announces Agreement to Purchase 16th Property

    WINNIPEG, Nov. 8 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") is pleased to announce that it will be completing the
acquisition of its 16th hotel, the Best Western Inn & Suites Hotel in Slave
Lake, Alberta. Slave Lake is located 436 kilometers South West of Fort
McMurray. The Slave Lake market is stable with a strong economic base driven
by natural resources such as oil and gas, forestry, fishing and tourism. The
industrial and tourism base of Slave Lake generate year round traffic to the
    The 68 room Best Western Inn & Suites Hotel opened in January, 2006, and
is considered the finest hotel in Slave Lake. The property is being acquired
for $10,300,000 or $151,470 per door. Based on trailing 12 month results
through September 30, 2007, the property is being acquired at an 11.2%
capitalization rate and will be immediately accretive to the cash flow of
Lakeview REIT. The price per door paid for the Best Western Inn & Suites Hotel
compares favourably to the price paid for the Super 8 Hotel in Slave Lake
which was recently purchased by an unrelated party for $198,276 per door. The
purchase of the Best Western Inn & Suites Hotel is scheduled to be completed
on November 15th, 2007. Upon completion of the purchase there will be fourteen
Lakeview REIT hotels in the Alberta / British Columbia region.
    The purchase price for the property will be satisfied by way of existing
sources of equity available to the REIT. The REIT remains in a strong position
to seek out accretive acquisitions while maintaining its monthly distributions
of $0.0367 per Unit. The Trustees have declared a distribution of $0.0367 per
Unit payable on November 30th, 2007, to the Unitholders of record on
October 31, 2007. This will be Lakeview REIT's 32nd consecutive distribution.
There are currently 19,269,423 Class A Units and Exchangeable Units issued and

    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 an investment in an expanding portfolio of hotel properties across
Canada. For further information on Lakeview REIT please visit our new website

    The TSX Venture Exchange has not reviewed or approved the contents of
    this press release and does not accept responsibility for the adequacy or
    accuracy of its contents.
    %SEDAR: 00020441E

For further information:

For further information: Keith Levit, President, or Avrum Senensky,
Investor Relations, Tel: (204) 947-1161, Fax: (204) 957-1697, Email

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Lakeview Hotel Real Estate Investment Trust

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