LGY Acquisition LP acquires 94.5% of Legacy Hotels REIT

LGY Acquisition LP (the "Offeror") and Legacy Hotels Real Estate Investment Trust ("Legacy REIT") (TSX: LGY.UN) announced today that approximately 118.1 million trust units of Legacy REIT have been validly deposited to the Offeror's previously announced offer to acquire all Legacy REIT trust units not already owned by the Offeror for $12.60 cash per trust unit (the "Offer"). At the expiry time of the Offer, all conditions of the Offer had been satisfied or waived by the Offeror. The Offeror has agreed to take up and accept for payment all trust units deposited, which represent approximately 94.5% of the issued and outstanding trust units, before markets open on September 17, 2007 and expects to pay for all such units on September 18, 2007. The Offer expired at 8:00 p.m. (Toronto time) on September 13, 2007. The take-up of the trust units by the Offeror on September 17, 2007 will allow all depositing unitholders to receive the benefit of the pro rata distribution of $0.06882 per trust unit declared by Legacy REIT to holders of record as of September 14, 2007. As announced by Legacy REIT on September 5, 2007, that pro rata distribution will be paid on or about September 18, 2007.

Once the Offeror acquires the deposited units on September 18, 2007, it will own sufficient trust units to effect an amendment to the Declaration of Trust of Legacy REIT, as described in the Offer, which would permit it to cause Legacy REIT to redeem the trust units held by nontendering Unitholders of Legacy REIT immediately on giving the appropriate redemption notice to such non-tendering Unitholders. The Offeror intends to effect such amendments, cause Legacy REIT to deliver the appropriate redemption notice and pay for such trust units on September 18, 2007.

Legal Notice

This announcement is for informational purposes only and does not constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security. The Offer (as the same may be varied or extended in accordance with applicable law) was made exclusively by means of, and subject to the terms and conditions set out in the offer and offering circular dated August 3, 2007, each delivered to Legacy REIT and filed with Canadian provincial securities regulators and mailed to Legacy REIT unitholders.

The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.