Lakeview Hotel Investment Corp Announces First Quarter Results

WINNIPEG, May 31, 2018 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended March 31, 2018.  The following comments in regard to the financial results should be read in conjunction with the March 31, 2018 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The first quarter of 2018 was challenging for Lakeview Hotel Investment Corp.  Room revenues for the 11 hotels owned at March 31, 2018 were down by $1.05 million from the same period in the previous year.  Increased oil prices had not translated into increased activity in the resource driven markets where many of the Lakeview hotels are located.  Over half of the loss of revenues in the quarter came from the Lakeview Signature Suites hotel in Calgary.  A very slow and competitive airport hotel market in Calgary combined with the loss of a major corporate client resulted in a $542,000 decrease in room revenues at that property alone.

Focused sales efforts that began in the second quarter of 2018 are expected to see room revenues at the Calgary property exceed room revenues achieved in the second quarter of 2017.  Overall room revenues for Lakeview Hotel Investment Corp are expected to be at or above second quarter of 2017 levels.

Higher oil prices did not translate to increased activity in oil markets as refining and transportation constraints limited the ability to move Alberta oil to market.  Those constraints are expected to ease in the second half of 2018 and business at Lakeview hotels is expected to be much more robust in the second half of the year.

Following is a comparison of the operating results for the three months ended March 31, 2018 and the comparable period in 2017:

		Three months ended March 31
		2018	2017
		$	$
Hospitality Revenue
	Room	3,223,888	4,529,007
	Food & Beverage	550,901	626,858
	Other	221,116	269,902
Total Revenue		3,995,905	5,425,767
Expenses		(5,862,318)	(6,497,037)
Net Loss		(1,866,413)	(1,071,270)
Basic and diluted net loss per share		(0.095)	(0.055)
Reconciliation to funds from operations
Add (deduct)
Amortization of income properties		471,366	522,226
Amortization of franchise fees		374	374
Distributions from Lakeview Flag Management General Partnership		-	18,000
Income from Lakeview Flag Licensing General Partnership		(93,882)	(127,219)
Income from Lakeview Flag Management General Partnership		(45,784)	(61,771)
Unrealized loss (gain) on change in fair value of interest rate swap		(43,529)	(118,088)
Funds from operations		(1,577,868)	(837,748)
Basic and diluted funds from operations per share		(0.081)	(0.043)
Contributions to reserve account		(68,442)	(105,680)
Adjusted funds from operations		(1,646,310)	(943,428)
Basic and diluted adjusted funds from operations per share		(0.084)	(0.048)
Reconciliation to distributable income
Accretion of other long-term debt		97,622	82,120
Accretion of debentures		140,791	42,241
Accretion of mortgages payable		1,109	1,211
Loss on derecognition of income properties		-	12,713
Distributable income		(1,406,788)	(805,143)
Basic and diluted distributable income per share		(0.072)	(0.041)
Distributions		0	0

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]

Related Links

http://www.lakeviewhotels.com