Lakeview Hotel Investment Corp Announces Third Quarter 2020 Results

WINNIPEG, MB, Dec. 16, 2020 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended September 30, 2020.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2020 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The impact of COVID continues to have an adverse effect on hotel occupancies continuing into the third quarter of the year.  The effect on the hotels revenue have not been as great in the third quarter as we saw in the second quarter.  Even though there is hope on the horizon with the start of the distribution of the COVID vaccine it is difficult to predict when business will return to normal.

At the start of COVID in March, LHIC took immediate action to safeguard employees and customer safety, ensure financial liquidity and reduce and defer expenses.  These actions will continue into 2021.

The following is a comparison of the operating results for the three and nine months ended September 30, 2020 compared to the results of operations for the comparable period in 2019:

	Three months ended September 30		Nine months ended September 30
	2020	2019	2020	2019
Hospitality Revenue
Room	2,236,052	3,192,186	5,183,660	8,893,813
Food & Beverage	457,331	578,349	998,742	1,672,624
Other	404,922	206,634	995,994	609,220
Total Revenue	3,098,305	3,977,169	7,178,396	11,175,657
Expenses	(4,046,891)	14,193,946	(12,314,978)	1,821,836
(Loss) Gain on sale of income properties	-	3,419	-	1,370,156
Net income (loss)	(948,586)	18,174,534	(5,136,582)	14,367,649
Basic and diluted income (loss) before income tax per share	(0.049)	0.929	(0.263)	0.735
Reconciliation to funds from operations
Add (deduct)
Gain on derecognition of financial liabilities	-	(19,896,176)	-	(19,896,176)
Amortization of income properties	70,297	214,187	241,210	951,124
Amortization of franchise fees	4,117	375	12,350	1,123
Loss (Gain) on sale of income properties	-	(3,419)	-	(1,370,156)
Provision for impairment of income properties	-	2,623	328,513	1,162,871
Amortization of right of use assets	-	-	-	7,149
Income from Lakeview Flag Licensing General Partnership	(37,920)	(103,303)	(123,277)	(286,257)
Loss (income) from Lakeview Flag Management General    Partnership	13	(44,124)	(26,898)	(125,553)
Unrealized loss (gain) on change in fair value of interest rate swap	-	(13,844)	-	43,648
Funds from operations	(912,079)	(1,669,147)	(4,704,684)	(5,144,578)
Basic and diluted funds from operations per share	(0.047)	(0.085)	(0.241)	(0.263)
Contributions to reserve account	(61,505)	(69,944)	(131,040)	(180,900)
Adjusted funds from operations	(973,584)	(1,739,091)	(4,835,724)	(5,325,478)
Basic and diluted adjusted funds from operations per share	(0.05)	(0.089)	(0.247)	(0.272)

Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol "LHR".  Lakeview Hotel Investment Corp received income from ownership, management and licensing of hotel properties.

The TSX Venture Exchange nor its Regulation Service Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Lakeview Hotel Investment Corp

Rudy Beyer, Chief Financial Officer, Tel: [phone], Fax: [phone], Email: [email protected]

Related Links

http://www.lakeviewhotels.com