Skyline Provides Operational Update
TORONTO, June 18, 2020 (GLOBE NEWSWIRE) — Skyline Investments Inc. (the “Company” or “Skyline”) (TASE: SKLN) provided an update regarding the effect of COVID-19 on the operations of the Company.
Canadian OperationsDeerhurst Resort and Horseshoe Valley Resort have both reopened as of June 12, 2020. Summer reservations are building once again at both of the resorts, however, the Province of Ontario still has significant restrictions in place. Indoor restaurants are not allowed to be open, and gatherings are limited to 10 people. The Greater Toronto Area remains under significant restrictions and therefore only essential services are permitted to be open. These restrictions are expected to be removed gradually as COVID-19 cases reduce. Each of the resorts’ food and beverage operations are restricted to outside patio service, whose areas have been significantly expanded to accommodate more guests. Both of the resorts have several outdoor activities available for their guests. Previously announced government funding to cover certain wages of the Company’s Canadian staff continues, with the program extended to August 31, 2020.U.S. OperationsIn the US, the Company’s hotels, which have never closed, are seeing rising occupancies week over week. Most occupancy increases are being experienced on the weekend, with slower growth coming on weekdays. In the case of the Company’s select service hotels, for the 13 Courtyard by Marriott (“Courtyard”) hotels, the average occupancy during the first two weeks of June 2020 was 23%, with some hotels achieving between 40%-70% occupancy on certain nights. This compares to average occupancy for April and May 2020 of 12% and 16%, respectively. The Courtyard “Bistro” food and beverage operations will remain closed until occupancy levels recover further.
Full Service HotelsThe Hyatt Arcade and the Renaissance hotels, both located in Cleveland, Ohio, were impacted in early June 2020 by the recent protests, which resulted in the downtown core being blocked off. While the company’s assets did not suffer any material physical effects, the blocked access to the downtown core prevented occupancies from rising, which stand at approximately 6% for the first two weeks of June, despite state-wide government COVID-19 restrictions easing at the time. These demonstrations have moved out of the city core and/or are peaceful and organized, and the Company expects occupancies to rise. Food and beverage operations at these hotels are preparing to re-open. Bear Valley Ski Resort will remain closed for the summer and until next ski season, however it completed its annual 2020/21 season ticket sales over the previous two months with sales only slightly below 2019/20 levels, but well above historical average ticket sale levels.All of the Company’s properties are operating with enhanced cleaning protocols, social distancing initiatives in place, and staff are encouraged to wear masks and other personal protective gear provided for their added protection. LiquidityThe Company’s consolidated cash resources remain strong with over $43 million of unrestricted cash as of May 31, 2020, as well as over $14 million in restricted cash.About Skyline
Skyline is a Canadian company that specializes in hospitality real estate investments in the United States and Canada. The Company currently owns 18 income-producing assets with 3,301 hotel rooms and 89,869 square feet of commercial space, and development lands with rights for approximately 2,315 residential units located in three main areas north of Toronto, Canada.The Company is traded on the Tel Aviv Stock Exchange (ticker: SKLN) and is a reporting issuer in Canada.For more information:Rob Waxman, CPA CA, CFA
Chief Financial Officer
robw@skylineinvestments.com
1 (647) 207-5312Ben Novo-Shalem
VP, Asset Management & Investor Relations
benn@skylineinvestments.com
1 (416) 368-2565 ext 2222Forward-Looking StatementsThis report contains forward-looking statements (within the meaning of applicable securities laws) relating to the Company’s business. In some cases, forward-looking statements can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. The Company’s assessments over the possible consequences of COVID-19 spreading or restraint, and government restrictions that may continue or be lifted in respect thereof constitute forward-looking statements. Forward-looking statements involve a number of known and unknown risks and uncertainties, many of which are outside of our control that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks detailed in our public filings. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this report and, except as expressly required by applicable law, we undertake no obligation to update any forward-looking or other statements herein whether as a result of new information, future events or otherwise.
Canadian OperationsDeerhurst Resort and Horseshoe Valley Resort have both reopened as of June 12, 2020. Summer reservations are building once again at both of the resorts, however, the Province of Ontario still has significant restrictions in place. Indoor restaurants are not allowed to be open, and gatherings are limited to 10 people. The Greater Toronto Area remains under significant restrictions and therefore only essential services are permitted to be open. These restrictions are expected to be removed gradually as COVID-19 cases reduce. Each of the resorts’ food and beverage operations are restricted to outside patio service, whose areas have been significantly expanded to accommodate more guests. Both of the resorts have several outdoor activities available for their guests. Previously announced government funding to cover certain wages of the Company’s Canadian staff continues, with the program extended to August 31, 2020.U.S. OperationsIn the US, the Company’s hotels, which have never closed, are seeing rising occupancies week over week. Most occupancy increases are being experienced on the weekend, with slower growth coming on weekdays. In the case of the Company’s select service hotels, for the 13 Courtyard by Marriott (“Courtyard”) hotels, the average occupancy during the first two weeks of June 2020 was 23%, with some hotels achieving between 40%-70% occupancy on certain nights. This compares to average occupancy for April and May 2020 of 12% and 16%, respectively. The Courtyard “Bistro” food and beverage operations will remain closed until occupancy levels recover further.
Full Service HotelsThe Hyatt Arcade and the Renaissance hotels, both located in Cleveland, Ohio, were impacted in early June 2020 by the recent protests, which resulted in the downtown core being blocked off. While the company’s assets did not suffer any material physical effects, the blocked access to the downtown core prevented occupancies from rising, which stand at approximately 6% for the first two weeks of June, despite state-wide government COVID-19 restrictions easing at the time. These demonstrations have moved out of the city core and/or are peaceful and organized, and the Company expects occupancies to rise. Food and beverage operations at these hotels are preparing to re-open. Bear Valley Ski Resort will remain closed for the summer and until next ski season, however it completed its annual 2020/21 season ticket sales over the previous two months with sales only slightly below 2019/20 levels, but well above historical average ticket sale levels.All of the Company’s properties are operating with enhanced cleaning protocols, social distancing initiatives in place, and staff are encouraged to wear masks and other personal protective gear provided for their added protection. LiquidityThe Company’s consolidated cash resources remain strong with over $43 million of unrestricted cash as of May 31, 2020, as well as over $14 million in restricted cash.About Skyline
Skyline is a Canadian company that specializes in hospitality real estate investments in the United States and Canada. The Company currently owns 18 income-producing assets with 3,301 hotel rooms and 89,869 square feet of commercial space, and development lands with rights for approximately 2,315 residential units located in three main areas north of Toronto, Canada.The Company is traded on the Tel Aviv Stock Exchange (ticker: SKLN) and is a reporting issuer in Canada.For more information:Rob Waxman, CPA CA, CFA
Chief Financial Officer
robw@skylineinvestments.com
1 (647) 207-5312Ben Novo-Shalem
VP, Asset Management & Investor Relations
benn@skylineinvestments.com
1 (416) 368-2565 ext 2222Forward-Looking StatementsThis report contains forward-looking statements (within the meaning of applicable securities laws) relating to the Company’s business. In some cases, forward-looking statements can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. The Company’s assessments over the possible consequences of COVID-19 spreading or restraint, and government restrictions that may continue or be lifted in respect thereof constitute forward-looking statements. Forward-looking statements involve a number of known and unknown risks and uncertainties, many of which are outside of our control that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks detailed in our public filings. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this report and, except as expressly required by applicable law, we undertake no obligation to update any forward-looking or other statements herein whether as a result of new information, future events or otherwise.
