WINNIPEG, MB, July 28, 2020 /CNW/ - Lakeview Hotel Investment
Corp ("LHIC") is pleased to report its financial results for the
Quarter ended March 31, 2020. The
following comments in regard to the financial results should be
read in conjunction with the March 31,
2020 financial statements and Management Discussion and
Analysis which are available on the SEDAR website
www.sedar.com.
The outlook for Lakeview Hotel Investment Corp (LHIC) is
directly tied to the outlook for the energy sector in Alberta and northern British Columbia and the COVID-19
pandemic.
The spread of COVID-19 during the first quarter, hotel guests
and travellers perception of the danger of COVID-19 and government
responses to this pandemic have had a significant effect on the
operating results of LHIC. It is expected that occupancy results
will continue to decline in the near future as the COVID-19
outbreak continues to impact the Canadian economy.
At some point the effects of COVID-19 on the economy and
consumer confidence will diminish and business will improve again.
However, at this stage of the pandemic crisis there is no clear
visibility as to when this will occur.
Following is a comparison of the operating results for the three
months ended March 31, 2020 and the
comparable period in 2019:
|
Three months
ended
March
31
|
|
2020
|
2019
|
|
$
|
$
|
|
Hospitality
Revenue
|
|
|
|
Room
|
1,875,258
|
2,543,471
|
|
Food &
Beverage
|
437,892
|
516,802
|
|
Other
|
125,398
|
185,682
|
|
Total
Revenue
|
2,438,548
|
3,245,955
|
|
Expenses
|
(5,002,145)
|
(5,366,049)
|
|
Gain (loss) on sale
of income properties
|
-
|
1,366,737
|
|
Net Loss
|
(2,563,597)
|
(753,357)
|
|
Basic and diluted net
loss per share
|
(0.131)
|
(0.039)
|
|
Reconciliation to
funds from operations
|
|
|
|
Add
(deduct)
|
|
|
|
Amortization of
income properties
|
87,504
|
380,973
|
|
Amortization of
franchise fees
|
4,117
|
374
|
|
Provision for
impairment of income properties
|
328,513
|
-
|
|
Income from Lakeview
Flag Licensing General Partnership
|
(67,131)
|
(90,938)
|
|
Income from Lakeview
Flag Management General Partnership
|
(26,918)
|
(36,678)
|
|
Unrealized loss on
change in fair value of interest rate swap
|
-
|
59,588
|
|
Gain on sale of
income properties
|
-
|
(1,366,737)
|
|
Funds from
operations
|
(2,237,512)
|
(1,806,775)
|
|
Basic and diluted
funds from operations per share
|
(0.114)
|
(0.092)
|
|
Contributions to
reserve account
|
(39,572)
|
(44,854)
|
|
Adjusted funds from
operations
|
(2,277,084)
|
(1,851,629)
|
|
Basic and diluted
adjusted funds from operations per share
|
(0.116)
|
(0.095)
|
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