Mr. Avrum Senensky reports

LAKEVIEW HOTEL INVESTMENT CORP ANNOUNCES YEAR END RESULTS

Lakeview Hotel Investment Corp. has released its financial results for the year ended Dec. 31, 2015. The following comments in regard to the financial results should be read in conjunction with the Dec. 31, 2015, financial statements and management's discussion and analysis, which are available on the SEDAR website.

The sharp decline in oil prices that occurred late in 2014 had an adverse impact on operating results throughout 2015. The important metrics of funds from operations, adjusted funds from operations and distributable income all turned negative in 2015. The duration of the downturn is still not clearly known. Although improvements may occur earlier, management of Lakeview Hotel Investment is assuming that operating results will not show meaningful improvement until at least 2017 and is taking the measures it deems necessary to function through this downturn, without sacrificing the standard of operations at its hotels and restaurants.

Prior to the slowdown, Lakeview Hotel Investment had been focused on reducing its overall leverage to improve balance sheet ratios and to position the corporation for future growth. These efforts will continue. Total liabilities have been reduced by $32-million since the end of 2012, largely through the sale of assets and the refinancing of debt. The corporation has also been focused on cost-saving measures to improve bottom-line performance. The corporation benefits greatly from the support of related parties that own over 59 per cent of the outstanding shares of Lakeview Hotel Investment and from the agreement of related parties to defer fees. This has allowed the corporation to remain current on all payments to all unrelated parties. The corporation is current on all debt service payments to mortgage holders, other long-term debtholders, on all payments to debentureholders, and on all property tax and tax payments to all government agencies. The related parties remain committed to the welfare of the corporation and will continue to provide the support necessary to benefit the corporation and its shareholders.

Following is a comparison of the operating results for the three months and year ended Dec. 31, 2015, with the comparable period in 2014.

                                        OPERATING RESULTS
                                                            Three months ended Dec. 31,           Year ended Dec. 31,
                                                                   2015           2014           2015           2014
Hospitality revenue
Room                                                         $5,069,763     $8,317,561    $25,005,838    $32,915,994
Food and beverage                                               934,265      1,216,923      3,745,560      4,695,419
Other                                                           329,783        476,346      1,544,966      1,933,032
                                                             ----------     ----------     ----------     ----------
Total revenue                                                 6,333,811     10,010,830     30,296,364     39,544,445
Expenses                                                     (8,535,197)    (9,682,067)   (35,276,757)   (38,359,661)
Gain on sale of income properties                                     -              -              -      1,007,514
Net income (loss)                                            (2,201,386)       328,763     (4,980,393)     2,192,298
Basic and diluted income (loss) per share                       (0.1126)         0.017         (0.255)         0.112
                                                             ----------     ----------     ----------     ----------
Reconciliation to funds from operations
Add (deduct)
Provision for impairment of income property                     400,000                       400,000
Amortization of income properties                               765,462        768,235      3,050,018      3,056,260
Amortization of franchise fees                                    1,192          1,192          4,768          4,768
Impairment of income property                                         -              -              -              -
Unrealized loss (gain) on change in fair
value of interest rate swap                                    (121,667)       410,933        895,849        660,478
Compensation costs of stock options                              28,525              -         28,525              -
Distributions from Lakeview Flag Licensing General
Partnership                                                      53,900        164,150        234,710        759,010
Distributions from Lakeview Flag Management General
Partnership                                                       8,750        120,000        163,500        605,250
Income from Lakeview Flag Licensing General Partnership        (115,398)      (168,735)      (557,403)      (706,763)
Income from Lakeview Flag Management General
Partnership                                                     (72,053)      (109,165)      (345,463)      (445,130)
Gain on sale of income properties                                     -              -              -     (1,007,514)
Amortization of discount on bankers  acceptance                       -              -        198,712              -
                                                             ----------     ----------     ----------     ----------
Funds from operations                                        (1,252,675)     1,515,373       (907,177)     5,118,657
Basic and diluted funds from operations per share                (0.064)         0.077         (0.046)         0.262
Loss on derecognition of financial liability                          -              -              -        580,732
Contributions to reserve account                               (138,754)      (224,864)      (776,896)      (760,767)
                                                             ----------     ----------     ----------     ----------
Adjusted funds from operations                               (1,391,429)     1,290,509     (1,684,073)     4,938,622
Basic and diluted adjusted funds from
operations per share                                             (0.071)         0.066         (0.086)         0.253
Reconciliation to distributable income
Accretion of other long-term debt                                39,635         40,662        178,857         53,397
Accretion of debentures                                          40,586         37,032        159,785        146,213
Accretion of mortgages payable                                   24,264         23,427         94,723        111,398
Loss on derecognition of income properties                       44,144         14,244        151,627         25,834
Distributable income                                         (1,242,800)     1,405,874     (1,099,081)     5,275,464
                                                             ----------     ----------     ----------     ----------
Basic and diluted distributable income per share                 (0.064)         0.072         (0.056)         0.270
Dividends                                                             0              0              0              0
                                                             ----------     ----------     ----------     ----------