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

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