LHR.UN Lakeview Hotel Invest Corp

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S. NEWS WIRE SERVICES/ WINNIPEG, Nov. 29, 2011 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") is pleased to report its financial results for the quarter ended September 30, 2011.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2011 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com and the Lakeview REIT website www.lakeviewreit.com. During the third quarter of 2011 Lakeview REIT enjoyed exceptional year-over-year revenue growth.  Hotel occupancies increased from 61.36% in the third quarter of 2010 to 72.39% in the third quarter of 2011.  Year-over-year the RevPar increased by 12.8%.  Overall revenues increased by 16% or $1.6 million.  RevPar for the quarter was the highest quarterly RevPar achieved by the REIT in five years.  Positive net income was generated for the first time since the third quarter of 2008. There has been an almost complete reversal of the conditions that led to the earlier decline in revenues for Lakeview REIT.  Regulatory changes and royalty changes in Western Canada combined with technological improvements which have made previously abandoned or never drilled fields financially viable have set off a new boom in drilling activity.  Lakeview REIT has been a major benefactor of that activity with hotels in many resource driven Western Canadian markets. Markets experiencing exceptional improvements in operating results in the third quarter of 2011 included Drayton Valley, Slave Lake and Edson, Alberta and Fort Saint John, British Columbia.  In recent months there has been a near complete reversal of fortunes in these markets. Business in the fourth quarter has continued to be robust, significantly greater than the levels achieved in the fourth quarter of 2011.  The forecast for drilling activity remains very strong going into 2012, boding very well for the prospects for Lakeview REIT. Following is a comparison of the operating results for the three and nine months ended September 30, 2011 and the three and nine months ended September 30, 2010: Three months ended Nine months ended September 30 September 30 2011 2010 2011 2010 Hospitality Revenue Room 10,026,865 8,814,503 26,327,392 23,157,362 Food & Beverage 906,085 667,594 2,485,052 2,080,165 Other 628,385 478,895 1,797,349 1,435,253 Total Revenue 11,561,335 9,960,992 30,609,793 26,672,780 Expenses 11,248,158 12,238,721 32,523,161 32,795,938 Net Income (Loss) 313,177 (2,277,729) (1,913,368) (6,123,158) Basic and diluted income 0.016 (0.116) (0.098) (0.313) (loss) before income tax per unit Reconciliation to funds - - from Operations Add (deduct) Amortization of income 1,359,795 1,566,450 4,217,033 4,784,592 properties Amortization of 5,076 8,734 20,284 26,202 franchise fees and licenses Provision for impairment - 1,396,062 - 1,396,062 of note receivable Compensation Costs of - 124,000 - 124,000 Unit Options Distributions from 110,250 362,600 406,455 411,600 Lakeview Flag Licensing General Partnership Distributions from 160,000 130,000 263,250 130,000 Lakeview Flag Management General Partnership Income from Lakeview (181,830) (154,583) (466,119) (397,687) Flag Licensing General Partnership Income from Lakeview (133,076) (116,327) (352,098) (310,931) Flag Management General Partnership Recovery of impaired (106,069) - (283,795) - amounts previously written off Funds from Operations 1,527,323 1,039,207 1,891,642 40,680 Basic and diluted funds 0.078 0.053 0.097 0.002 from Operations per unit Contributions to reserve (538,331) (232,505) (906,590) (570,879) account Adjusted funds from 988,992 806,702 985,052 (530,199) Operations Basic and diluted 0.051 0.041 0.050 (0.027) adjusted funds from Operations per unit Reconciliation to distributable income Accretion on debt 340,467 300,465 981,979 868,532 component of convertible debentures Accretion of debentures 57,466 51,717 167,954 151,150 Accretion of mortgages 63,142 63,143 178,412 190,138 payable Gain on disposal of (24,276) - (6,983) - income properties Distributable income 1,425,791 1,222,027 2,306,414 679,621 Basic and diluted 0.073 0.062 0.118 0.035 distributable income per unit Distributions - - - - Lakeview REIT is a real estate investment trust, which is listed on the TSX Venture Exchange under the symbol "LHR.UN".  Lakeview REIT receives income from ownership, management and licensing of hotel properties.  For further information on Lakeview REIT please visit our website www.lakeviewreit.com. 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.    Lakeview Hotel Real Estate Investment Trust CONTACT: Keith Levit, President, or Avrum Senensky, Executive VicePresidentTel: (204) 947-1161, Fax: (204) 957-1697,Email asenensky@lakeviewhotels.com

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