LHR.UN Lakeview Hotel Invest Corp

/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTIBUTION TO U.S. NEWS WIRE SERVICES/ WINNIPEG, April 30, 2012 /CNW/ - Lakeview Hotel Real Estate Investment Trust ("Lakeview REIT") is pleased to report its financial results for the year ended December 31, 2011.  The following comments in regard to the financial results should be read in conjunction with the December 31, 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. The uptrend in operating results that began in 2010 continued throughout 2011.  Lakeview REIT experienced a 14.7% increase in room revenues at its hotels in 2011.  Rebranding of Lakeview REIT's restaurant facilities to Roustabouts Restaurants and Bars, with accompanying renovations, led to a 21.1% increase in food and beverage revenues. Operating efficiencies that have been put in place at Lakeview REIT properties allowed the revenue increases to translate into significant improvements in Distributable Income, Funds from Operations, and Adjusted Funds from Operations. The improvements in operating results that the REIT enjoyed in 2011 are expected to continue.  Economic activity in Alberta and Northern British Columbia continues to be very robust.  This activity has translated into increased occupancy levels in many of the markets that Lakeview REIT operates its hotels.  In some cases the improvement has been dramatic.  While natural gas prices are down, crude oil prices and prices for liquid rich gases are very strong and drilling for these commodities has been increasing in many markets where Lakeview REIT has its hotels.   Performance varies widely from market to market as demand in any given market may move up or down based on levels of drilling activity, pipeline construction and other drivers for hotel room demand.  However, the overall trend has been and continues to be very positive. Lakeview REIT is now clearly cash flow positive.  It is anticipated that surplus cash flow will be used to reduce liabilities of the REIT and for capital improvements to its properties. Following is a comparison of the operating results for the three months and year ended December 31, 2011 and the comparable periods in 2010: Three monthsended Year ended December31 December 31 2011 2010 2011 2010 $ $ $ $ Hospitality Revenue Room 9,065,600 7,706,385 35,392,992 30,863,747 Food & Beverage 1,066,840 852,082 3,551,892 2,932,247 Other 444,913 446,304 2,242,262 1,881,557 Total Revenue 10,577,353 9,004,771 41,187,146 35,677,551 Expenses 11,401,670 10,785,915 43,924,831 43,581,853 Net Income (Loss) (824,317) (1,781,144) (2,737,685) (7,904,302) Basic and diluted income (0.042) (0.091) (0.140) (0.404) (loss) before income tax per unit Reconciliation to funds from Operations Add (deduct) Amortization of income 1,281,333 1,569,584 5,498,366 6,354,176 properties Amortization of 5,077 8,214 25,361 34,416 franchise fees and licenses Provision for impairment - - - 1,396,062 of note receivable Compensation Costs of - - - 124,000 Unit Options Distributions from 384,650 122,500 791,105 534,100 Lakeview Flag Licensing General Partnership Distributions from 107,500 105,000 370,750 235,000 Lakeview Flag Management General Partnership Income from Lakeview (110,757) (134,437) (576,876) (532,124) Flag Licensing General Partnership Income from Lakeview (123,702) (104,548) (475,800) (415,479) Flag Management General Partnership Recovery of impaired - - (283,795) - amounts previously written off Funds from Operations 719,784 (214,831) 2,611,426 (174,151) Basic and diluted funds 0.037 (0.011) 0.134 (0.009) from Operations per unit Contributions to reserve (291,637) (199,177) (1,048,345) (770,056) account Adjusted funds from 428,147 (414,008) 1,563,081 (944,207) Operations Basic and diluted 0.022 (0.021) 0.080 (0.048) adjusted funds from Operations per unit Reconciliation to distributable income Accretion on debt 342,417 302,182 1,324,396 1,170,714 component of convertible debentures Accretion of debentures 175,922 53,098 343,876 204,248 Accretion of mortgages 71,561 64,550 249,973 254,688 payable Gain on disposal of 4,390 - (2,593) - income properties Distributable income 1,022,437 5,822 3,478,733 685,443 Basic and diluted 0.052 0.000 0.178 0.035 distributable income per unit Distributions 0 0 0 0 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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