Legacy Hotels Real Estate Investment Trust Announces Acquisition of the Fee Interest in Its Moncton Hotel

Market Wire, February, 2007

Legacy Hotels Real Estate Investment Trust ("Legacy")(TSX: LGY.UN) today announced that it has reached an agreement to acquire the fee interest in the 310-room Delta Beausejour in Moncton for approximately $21.2 million plus closing costs. Legacy currently owns the leasehold interest in the property, which expires in 2015. Legacy expects to invest approximately $6.0 million in the property to renovate and reposition the hotel.

Delta Beausejour is located in Moncton's downtown core, the geographic centre of the Maritimes. Amenities include 15 meeting rooms with a total of 24,000 square feet of meeting space, an indoor pool, fitness centre and two full-service restaurants including the award-winning Windjammer Dining Room.

The acquisition is expected to be financed by a $25.0 million mortgage on the property. Incremental mortgage proceeds will be used to partially fund the capital investment program at the hotel. Closing is anticipated in March 2007. Legacy anticipates that this transaction will be immediately accretive to its earnings. Net annual lease payments on the fee interest being acquired approximated $1.7 million in 2006.

"We're pleased to have acquired this long-term position in the Delta Beausejour. Value enhancement efforts, including addressing some of our leasehold interests, has been a strategic priority for Legacy over the past year," commented Neil J. Labatte, Legacy's President and Chief Executive Officer. "Moncton represents an important and growing market in eastern Canada. Our commitment to investing capital in the asset should provide further opportunities for improved performance at the hotel."

About Legacy Hotels Real Estate Investment Trust

Legacy is the largest Canadian lodging real estate investment trust, focused on the ownership of luxury and first-class hotels. With a presence across Canada and in two top U.S. markets, Legacy's portfolio of 25 hotels provides geographical diversification across major urban centres. The portfolio includes landmark properties such as Fairmont Le Chateau Frontenac, The Fairmont Royal York, The Fairmont Empress and The Fairmont Olympic Hotel, Seattle. Legacy units and convertible debentures trade on the Toronto Stock Exchange under the symbols LGY.UN and LGY.DB, respectively.

Contacts: Legacy Hotels Real Estate Investment Trust Chantal Nappert Executive Director, Investor Relations (416) 860-6140 Email: investor@legacyhotels.ca Website: www.legacyhotels.ca