Canadian company Skyline Investments Inc., that specializes in hospitality real estate investments has announced the financial and operational results for the second quarter and six months ended June 30, 2020.
World economy faced unprecedented challenges during the first half of 2020 and the situation was not changed for Skyline’s properties as well. However, Skyline managed to increase its cash reserves during the novel pandemic.
Skyline improved its operational and financial results majorly by achieving a strong performance from its Courtyard portfolio, better results at its ski resorts, and because of the sale of a substantial development project.
In second quarter of 2020 the company saw a material downturn in occupancy like the entire hospitality industry like hotels and resorts, including the temporary closure of Bear Valley, Deerhurst, and Horseshoe.
However, in first half of June the Skyline’s Horseshoe and Deerhurst reopened while that was a time for Deerhurst’s summer high season. Since reopening Horseshoe and Deerhurst saw rising activities and achieved 52% average combined occupancy during July this year compared to 74% in same period of 2019. The company cut significant cost reductions and took steps to strengthen its liquidity to cope with the crisis arose by COVID-19 pandemic.
The company’s strong balance sheet along with Government relief programs has helped Skyline to lessen the negative impact of COVID-19 while it has managed to make all essential interest and principal payments.
Coming to the company’s financial results, Skyline reported a huge decline in total revenue to $7.3 million for second quarter of 2020 as compared to $73.7 million posted in second quarter of 2019. Its revenue from hotels and resorts declined 85% to $45.8 million due to the impact of COVID-19. While Skyline reduced the operating expenses related to hotels and resorts by 68% after the pandemic crisis.