Lakeview Hotel REIT is an unincorporated closed-end mutual fund trust which began trading on the TSX Venture Exchange in April, 2004 under the symbol LHR.UN. Although the REIT is a relatively new company, the history of its parent company, Lakeview Management Inc., is rich and deep and the wealth of skill and experience that Lakeview Management Inc. brings to the REIT is extensive.
Lakeview Management Inc. is a fully diversified organization experienced in all major sectors of real estate development activity. Since its inception in 1964, Lakeview and its affiliated companies have developed or acquired projects throughout North America with an estimated value of approximately two billion dollars in today’s dollar equivalent.
Now in its fifth decade, Lakeview has been involved in development and acquisition activities throughout much of Canada and in many areas in the United States. The company’s capabilities extend over all phases of real estate development, property acquisition, financing, design and construction, and ongoing property management. Lakeview has made a substantial contribution to changing the shape of the Winnipeg skyline and was the first developer to envision the transformation of Winnipeg’s downtown area by a systematic network of enclosed, climate-controlled pedestrian skywalks.
Many of Lakeview’s developments and acquired properties were made available for public investment through the formation of limited partnership syndications. These offerings encompassed a broad selection of prime residential, commercial, retail, hotel and other properties.
In recent years, Lakeview’s efforts focused squarely on hotel development and management. Lakeview has developed 21 full and limited service hotels and resorts. Lakeview or its principals currently own nine hotels including the Lakeview Resort & Conference Centres in Gimli, Manitoba, and Summerside, PEI, six Lakeview Inn & Suites properties and the Four Points By Sheraton hotel connected by a climate-controlled skywalk to the Winnipeg International Airport Terminal Building. Lakeview also manages eight hotels for third parties, seven of which are for the Royal Host Real Estate Investment Trust (TSX: RYL.UN).
Lakeview Management Inc. is currently focused on expanding the chain of Lakeview Inns & Suites and Lakeview Resort hotels to make Lakeview hotels a significant force in the Canadian hospitality industry. To this end, Lakeview embarked on its first venture into the public domain with the creation of the Lakeview Hotel Real Estate Investment Trust. Through the Lakeview Hotel REIT, Lakeview has a vehicle to raise the capital necessary for the rapid expansion of the Lakeview brands and to allow investor participation in Lakeview’s growth and success.
Lakeview Hotel REIT has been structured to ensure the interests of Lakeview Management Inc. are aligned with the interests of the investment public. To accomplish this, Lakeview Hotel REIT was structured to jointly own with Lakeview a new management company allowing Lakeview Hotel REIT and Lakeview Management Inc. to share in the income from managing the hotel properties of Lakeview Hotel REIT. Lakeview Hotel REIT also acquired a 49% interest in the Lakeview flag, allowing the REIT to share in the licensing income of Lakeview flagged hotels.
Structuring the REIT to have its interests aligned with Lakeview Management Inc. has had an added benefit. Lakeview Hotel REIT enjoys having a diversified stream of incomes from hotel ownership, hotel management and from the licensing of hotel properties. Having a diversity of income streams reduces the overall investment risk of Lakeview Hotel REIT. Since its inception in April, 2004, Lakeview Hotel REIT has been able to grow its portfolio from a single property in Fredericton, New Brunswick, to eigthteen hotels located in British Columbia, Alberta, Ontario and New Brunswick.
