This agreement launches CHIP Hospitality�s new initiative to pursue third party management contracts. �In 1999 and 2000, our mandate was to ensure CHIP REIT owned hotels were well managed and performing. This year, we have the confidence and ability to take our expertise to third party hotel and resort owners�, said Minaz Abji, Executive Vice President and Chief Operating Officer. �CHIP Hospitality is in the top five hotel management companies in Canada and we have the proven resources, processes and programs to effectively maximize the performance of our hotels and resorts, both managed and owned.�

The Residence Inn by Marriott Canmore is a strategically important management contract, as it demonstrates CHIP Hospitality�s ability to manage both a CHIP REIT owned and non-parent owned hotel in the same destination: CHIP REIT currently owns the Radisson Hotel & Conference Center, Canmore, which is predominately a full-service mid-market group and convention hotel, while the Residence Inn by Marriott is an upscale all-suite hotel designed for longer stay and independent travellers. The addition of the Residence Inn by Marriott Canmore provides CHIP Hospitality with a complementary product to meet the needs of the higher-end market.

The owner of the two developments awarded the management contract to CHIP Hospitality because �CHIP Hospitality offered a lot of synergy and demonstrated their understanding of the �business of hotels�, namely, employee satisfaction, guest satisfaction and owner/investor satisfaction. They focused on a very �tailor made� approach to doing business with us by customizing their agreement and services to meet our needs�, said Charles Noh, President of Dong Ah Development Corporation and Grand Canadian Resorts Incorporated.

Located 20 minutes from Banff, The Residence Inn by Marriott Canmore is an all-suite hotel offering 119 deluxe suites for discerning travellers looking for the less commercial experience and the greater value that Canmore offers over Banff. Under terms of the agreement, CHIP Hospitality will also oversee the management of The Grand Canadian Resorts timeshare project, an additional 32 two-bedroom suites.  CHIP Hospitality will oversee the property management, but will not be responsible for selling actual timeshare vacation memberships, which will remain the responsibility of The Grand Canadian Resorts.
 
CHIP Hospitality�s �tailor made� management services include, but are not limited to, performance driven fee structures; unbiased management regardless of brand or non-brand affiliation; superior franchise relations managing 11 brands; independent hotel experts; strong national sales and marketing programs: QUEST�, an inter-hotel lead referral program; Traveller�s Rewards�, a frequent guest program for non-branded hotels; Guest Logic® a CRM (Customer Relationship Management) tool allowing properties to identify and target their best customers; and a strong regional network supported by Regional Vice Presidents, Directors of Sales and Marketing and Sales Managers to ensure success with national and regional accounts and programs. Operationally, CHIP Hospitality offers quality service and performance measurements including CHIP Hotel Departmental Service Standards, a Guest Satisfaction Index program, an Associate Satisfaction Index program, national cost and revenue performance benchmarking, and national purchasing agreements.

Canadian Hotel Income Properties (CHIP), operating as CHIP REIT and CHIP Hospitality, is an integrated hotel real estate investment trust and hotel management company focused on mid-market and upscale full-service and extended stay hotels. Through management strategies, upgrades, repositioning and franchising, CHIP Hospitality improves the operating performance of the properties within the portfolio to create value for investors. CHIP REIT/CHIP Hospitality is one of Canada�s top five hotel management companies, in terms of rooms owned and managed, now with over 8,000 rooms across 37 hotels. The company has over 5,000 employees and had almost $260 million in annual revenues in 2000. CHIP REIT units trade on The Toronto Stock Exchange under the symbol HOT.un.