Lakeview Hotel Investment Corp Reports Second Quarter 2021 Results

WINNIPEG, MB, November 26, 2021 / CNW / – Lakeview Hotel Investment Corp (“LHIC”) is pleased to report quarterly financial results June 30th, 2021. The following comments on financial results should be read in conjunction with the June 30, 2021 the financial statements and the MD&A which are available on the SEDAR website www.sedar.com.

The Covid-19 pandemic continues to negatively impact the Company’s operating activities due to a decline in leisure and business travel and economic activity. Second quarter hotel revenues and operating results improved compared to the same period in 2020. However, we expect the below normal results to continue for several more quarters until the population is vaccinated. and that leisure and business travel become more normalized.

As reported in a previous press release, Lakeview Hotel Investment Corp. [“LHIC”] entered into an arrangement agreement dated November 9, 2021 whereby a purchaser has agreed to acquire all of the outstanding common shares of Lakeview, has agreed to acquire all of the outstanding Series C debentures and all of the Series D debentures of Lakeview with all accrued and unpaid interest due to holders debentures surrendered, settled and extinguished without consideration; and agreed to pay to LHIC or to LHIC’s benefit approximately $ 15,000,000 for LHIC to pay and satisfy all amounts owed by LHIC to its loan syndicate led by ATB Financial, and to pay certain costs associated with the transaction.

Completion of the transaction is dependent on shareholder and bondholder approval and court approval.

The following is a comparison of operating results for the three and six months ended. June 30, 2021 compared to operating results for comparable periods in 2020:

Three months ended

June 30th

Six months ended

June 30th

2021

2020

2021

2020

Home recipes

Room

1,338,131

1,072,350

2,670,628

2 947 608

food and drinks

150 110

103,519

392,841

541,411

Other

335,942

465,674

713,514

591,072

Total income

1,824,183

1 641 543

3,776,983

4,080,091

Expenses

(3,783,628)

(3,265,942)

(7,436,077)

(8,268,087)

Net income (Loss)

(1 959 445)

(1,624,399)

(3,659,094)

(4 187 996)

Basic and diluted earnings (loss) before tax per share

(0.100)

(0.083)

(0.187)

(0.214)

Reconciliation of funds from operations

Add (deduct)

Depreciation of income-producing properties

72,074

83,409

143,243

170 913

Amortization of franchise rights

4,116

8 233

Revenue from Lakeview Flag Licensing General Partnership

(18,680)

(18,226)

(33,442)

(85,357)

Loss (income) of Lakeview Flag Management General

7

(26 911)

Partnership

Provision for depreciation of income-producing properties

328,513

Operating funds

(1 906 051)

(1,555,093)

(3,549,293)

(3,792,605)

Basic and diluted funds from operations per share

(0.097)

(0.080)

(0.181)

(0.194)

Contribution to the reserve account

(34 956)

(29,963)

(65,417)

(69,535)

Adjusted operating funds

(1,941,007)

(1,585,056)

(3,614,710)

(3,862,140)

Basic and diluted adjusted funds from operations per share

(0.099)

(0.081)

(0.185)

(0.197)

Lakeview Hotel Investment Corp is listed on the TSX Venture Exchange under the symbol “LHR”. Lakeview Hotel Investment Corp has received revenue from the ownership, management and licensing of hotel properties.

Neither the TSX Venture Exchange nor its Regulation Services 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

Cision

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