WINNIPEG, Nov. 27, 2015 /CNW/ - Lakeview Hotel Investment Corp ("LHIC") is pleased to report its financial results for the Quarter ended September 30, 2015.  The following comments in regard to the financial results should be read in conjunction with the September 30, 2015 financial statements and Management Discussion and Analysis which are available on the SEDAR website www.sedar.com.

The outlook for Lakeview Hotel Investment Corp. is closely linked to oil and gas drilling activity in Western Canada and thus is linked closely to the underlying commodity prices.  The decline in oil prices has resulted in significant capex cuts from oil producers which in turn have had a material impact on demand for hotel rooms and the operating results of Lakeview.  While average room rate held firm, third quarter occupancy declined from 77.14% in 2014 to 56.76% in the third quarter of 2015.

Most investment banks are expecting a slow recovery in the price of oil in 2016 with an expectation that by year end Nymex crude oil will be trading at between $50 and $70 per barrel.  The recovery will ultimately lead to increased capex expenditures and demand for hotel rooms, but as much of the capex plans for 2016 are already being put in place, the expectation is that a resumption in more normal levels of activity may not take place until later in 2016 and into 2017.

It is important to note that not all of Lakeview's hotels are dependent on drilling activity and thus tied to the price of oil.  However, the impact on certain markets, such as Drayton Valley, is substantial, where occupancy through the third quarter is at 33.0% vs 73.3% for the same period in 2014.   Lakeview is continuing to look at opportunities to reduce leverage and restructure debt to be well positioned for growth and to generate shareholder value when market conditions improve.

Following is a comparison of the operating results for the three and nine months ended September 30, 2015 and the comparable periods in 2014:

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