Lakeview Hotel Investment Corp Announces Third Quarter Results

WINNIPEG, Nov. 29, 2018 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended September 30, 2018.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2018 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The 3rd quarter of 2018 was a challenging one for Lakeview Hotel Investment Corp as Alberta struggled with a precipitous decline in oil prices.  The spread between West Texas Intermediate (WTI) and Western Canada Select (WCS) oil prices reached the largest levels in history, largely due to transportation constraints in getting Alberta oil to market. While WTI traded at well north of $60 per barrel, the price that oil producers in Alberta were selling oil for dropped under $20 per barrel.  There does not appear to be a near term solution to this problem.  The Alberta Government would like to see a sharp increase in rail capacity to provide some near term relief.  The Federal Government does not support this approach and would rather see a long term solution to the problem through an increase in pipeline capacity.  In the meantime oil prices languish in Alberta.   As a result of the extremely low price of WCS activity in the oil patch was unusually slow during what is typically a very robust period.  This directly impacted occupancy levels at many of the hotels in the Lakeview portfolio.

Major projects that have been announced unrelated to the delivery of oil should in the future significantly benefit many of Lakeview's hotels.  These projects include a $40 billion LNG Canada project in Kitimat, the $10.7 billion site C dam in Fort Saint John and the $3.5 billion Heartland Petrochemical Complex in Strathcona.   All are expected to contribute to improved operating results going forward.  The most immediate results are expected from the Heartland project which should be moving forward at full speed in 2019.  This should have a very positive impact on the property in Fort Saskatchewan.

Focused sales efforts that began at the Calgary property and have been extended to other hotels in the Lakeview Hotel Investment Corp portfolio are anticipated to positively impact results going forward.

Following is a comparison of the operating results for the three and nine months ended September 30, 2018 and the comparable period in 2017:

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