|Delayed - 07/27 09:30:00 am|
Lakeview Hotel Investment : Provides Business Update; Addresses Impact of Coronavirus (COVID-19) on its Operations
|04/02/2020 | 04:01pm|
All 6 hotels owned and operated by Lakeview are currently open for business. Hotel management has modified operations at each property to ensure the health and safety of hotel employees and guests as well as to adhere to regional and national health mandates. These modifications include closing food and beverage offerings at each hotel.
Guestroom bookings and occupancy rates have deteriorated rapidly as a result of COVID-19 and its impact on the Canadian economy as a whole. In particular, occupancy rates in
Cost Saving Strategies
In anticipation of further volume declines within the industry over the coming months, Lakeview, in conjunction with its hotel manager, has implemented cost savings measures, including significantly reducing staffing levels and eliminating food and beverage operations. The Corporation is considering temporarily shutting down operations all together at some of its hotels in an effort to preserve cash and strengthen its financial position.
Ability to meet Financial Obligations
It is expected that occupancy rates will continue to decline in the near future as the COVID-19 outbreak continues to impact the Canadian economy, the hotel industry, the willingness of the general public to travel and the oil and natural resources industries needing hotel space for its employees and contractors. The negative impacts from COVID-19 are expected to materially adversely affect the Corporation's: (i) results of operations and financial condition; (ii) ability to obtain additional equity or debt financing, re-finance existing debt, and/or make interest and principal payments to its lenders and to holders of Lakeview's debentures; and (iii) ability to otherwise satisfy its financial obligations, resulting in non-compliance with the financial covenants under its existing credit facilities and cause a default thereunder.
Certain statements in this news release may constitute "forward-looking information" within the meaning of applicable securities laws (also known as forward-looking statements). Forward looking information involves known and unknown risks, uncertainties and other factors, and it may cause actual results, performance or achievements or industry results, to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information. Forward-looking information generally can be identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "feel", "intend", "may", "plan", "predict", "project", "subject to", "will", "would", and similar terms and phrases, including references to assumptions. Some of the specific forward-looking statements in this news release include, but are not limited to, statements with respect to: anticipated further volume declines within the industry over the coming months; Lakeview's expectation that recent deteriorating demand across the hotel sector will continue to negatively impact future guest bookings and occupancy levels at its properties; Lakeview's ability to obtain additional equity or debt financing, re-finance existing debt, and/or make interest and principal payments to its lender and to holders of Lakeview's debentures; and Lakeview's ability to otherwise satisfy its financial obligations.
Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results as actual results may differ materially from those expressed or implied in such forward-looking statements.
The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Forward-looking information reflects management's current beliefs and is based on information currently available to Lakeview. The forward-looking information is made as of the date of this news release and Lakeview assumes no obligation to update or revise such information to reflect new events or circumstances, except as may be required by applicable law.
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