WINNIPEG, April 2, 2020 /CNW/ - Lakeview Hotel Investment
Corp. (TSXV: LHIC) (the "Corporation" or "Lakeview")
is providing an update on its hotel operations including the
impacts of coronavirus ("COVID-19") and related
government initiated measures.
Updated on Hotel Operations
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 Alberta and British
Columbia are being negatively impacted by the significant
drop in the price of oil throughout the month of March.
Between a significant reduction in people travelling and a
significant reduction in spending in the oil and natural resources
industries, Lakeview has seen its occupancy drop to all time
lows.
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.
Forward-Looking Information
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.
About the Corporation
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