Announces agreement to purchase Residence Inn - Calgary
WINNIPEG, June 4 /CNW/ - Lakeview Hotel Real Estate Investment Trust
("Lakeview REIT") is pleased to report the financial results for the three
months ended March 31, 2007. The following comments in regard to the financial
results should be read in conjunction with the complete year end financial
statements and Management Discussion and Analysis which are available on the
SEDAR website www.sedar.com and on the Lakeview REIT website
Highlights for Lakeview REIT for the three months ended March 31, 2007 as
compared to the same period in the previous year include:
- Total number of properties owned by the REIT increased from 6 to 12.
Total number of rooms owned increased from 463 to 862;
- Average room rate increased from $100.86 to $111.77;
- RevPar increased from $71.14 to $74.63;
- Total revenues increased by 136% to $7,021,463;
- Net income increased by 426% $1,168,877;
- Net income per unit increased by 56% from $0.041 to $0.064; and
- Distributions per unit were increased by 22% from $0.09 to $0.11.
Lakeview REIT is also very pleased to announce that it will be completing
the acquisition of its 15th hotel, the 120 room Residence Inn By Marriott in
Calgary, Alberta. The Residence Inn is one of the premier hotels in the
Calgary airport market and has enjoyed consistent and growing cash flow since
opening. It is a four-storey extended stay; all suite facility featuring
over-sized rooms, full kitchens, full bathrooms, complimentary hot breakfasts,
an indoor pool and spa, a tennis court, and many other outstanding amenities.
The purchase is scheduled to close on June 22nd. Upon acquisition, the hotel
will be converted to the Lakeview brand as a Lakeview Signature Suites hotel.
The conversion will immediately add to the accretiveness of the acquisition
through a reduction in the franchise fees paid by the REIT. The high profile
nature of this acquisition will enhance the profile of all Lakeview hotels
operating hotels in Alberta. Upon completion of the purchase there will be
twelve Lakeview REIT hotels in the Alberta/British Columbia region operating
as Lakeview Inns & Suites and Lakeview Signature Suites.
The purchase price for the property of $26,500,000 will be satisfied by
way of first mortgage financing with GE Capital, by existing sources of equity
available to the REIT, and by way of an offering of convertible redeemable
subordinated debentures led by Wellington West Capital Inc. as announced last
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. Lakeview REIT's
objective is to provide Unitholders with stable and growing cash distributions
through an investment in an expanding portfolio of hotel properties across
Canada. For further information on Lakeview REIT please visit our new website
The TSX Venture Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy or
accuracy of its contents.
For further information:
For further information: Keith Levit, President, or Avrum Senensky,
Investor Relations, Tel: (204) 947-1161, Fax: (204) 957-1697, Email