Lakeview Hotel Investment Corp Announces 3rd Quarter Results

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WINNIPEG, Nov. 28, 2014 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended September 30, 2014.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2014 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

Lakeview Hotel Investment Corp. experienced strong operating results from its 15 hotels in the third quarter of 2014. Comparing the operating results for these 15 hotels with the results achieved in the third quarter of 2013, total revenues increased by 6.86% from $10,094,983 to $10,787,017. Hotel occupancy for the 15 hotels was at 77.14% compared to 71.35% for the same hotels in the third quarter of 2013. Revenue per available room increased from $85.84 to $91.83.

Strong operating results are continuing into the fourth quarter of the year. The previous expectation that revenues would be flat to better during the second half of 2014 when compared to 2013 is now clearly that second half revenues for the 15 hotels in 2014 will exceed the revenues achieved in the second half of 2013.

While the performance of the portfolio was strong, Lakeview Hotel Investment Corp experienced decreases in the important metrics of Funds from Operations, Adjusted Funds from Operations, and Distributable Income during the third quarter. The reductions were a result of one-time costs and charges associated with the refinancing of 13 first mortgage loans during the quarter. With virtually all charges now accounted for, with financing in place for the 13 hotels until 2019, and with no further financing maturities until the fourth quarter of 2016, the improving trend in operating results that Lakeview Hotel Investment Corp has experienced since the second quarter of 2013 is expected to resume.

Following is a comparison of the operating results for the three and nine months ended September 30, 2014 and the comparable period in 2013:

		Three months ended		Nine months ended
		September 30		September 30
		2014	2013	2014	2013
Hospitality Revenue
	Room	9,072,496	9,424,621	24,598,433	26,211,025
	Food & Beverage	1,194,637	1,152,520	3,478,496	3,389,968
	Other	519,884	464,749	1,456,686	1,332,948
Total Revenue		10,787,017	11,041,890	29,533,615	30,933,941
Expenses		10,673,932	9,735,629	28,677,594	30,320,768
Gain on sale of income properties		-	(87,882)	1,007,514	6,070,238
Net income (loss)		113,085	1,218,379	1,863,535	6,683,411
Basic and diluted income (loss) before income tax per share/unit		0.006	0.062	0.095	0.342
Reconciliation to funds from Operations
Add (deduct)
Amortization of income properties		767,919	633,779	2,288,025	2,638,810
Amortization of franchise fees		1,192	1,192	3,576	3,576
Gain on sale of income properties		-	87,882	(1,007,514)	(6,070,238)
Distributions from Lakeview Flag Licensing General Partnership		193,060	198,450	594,860	417,480
Distributions from Lakeview Flag Management General Partnership		146,500	146,250	485,250	342,500
Income from Lakeview Flag Licensing General Partnership		(209,542)	(151,977)	(538,028)	(440,388)
Income from Lakeview Flag Management General Partnership		(123,363)	(127,319)	(335,965)	(356,403)
Unrealized loss on change in fair value of interest rate swap		249,545	-	249,545	-
Compensation costs of stock/unit options		-	22,080	-	22,080
Funds from Operations		1,138,396	2,028,716	3,603,284	3,240,828
Basic and diluted funds from Operations per share/unit		0.058	0.104	0.184	0.166
Loss on derecognition of financial liability		580,732	-	580,732	-
Contributions to reserve account		(184,326)	(223,112)	(535,903)	(593,229)
Adjusted funds from Operations		1,534,802	1,805,604	3,648,113	2,647,599
Basic and diluted adjusted funds from Operations per share/unit		0.078	0.092	0.187	0.135
Reconciliation to distributable income
Loss on derecognition of income properties		9,703	2,473	11,590	28,253
Accretion of debentures		36,622	77,564	109,181	229,126
Accretion of mortgages payable		42,142	21,178	87,971	65,354
Accretion of other long-term debt		12,735	-	12,735	-
Distributable income		1,636,004	1,906,819	3,869,590	2,970,332
Basic and diluted distributable income per share/unit		0.084	0.097	0.198	0.152
Distributions		-	-	-	-

Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol "LHR".  Lakeview Hotel Investment Corp receives 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

Avrum Senensky, Executive Vice President, Tel: [phone], Fax: [phone], Email [email protected]