On November 9, 2023, LuxUrban Hotels Inc. (LUXH, Financial) announced its financial results for the third quarter of 2023, showcasing a record performance with substantial increases in key financial metrics. The company's net rental revenue soared to $31.2 million, up from $11.6 million in the third quarter of 2022. This remarkable growth was accompanied by a significant improvement in net income, which reached a quarterly record of $4.9 million, or $0.11 per share, compared to a net loss of $(3.2) million, or $(0.13) per share, in the same quarter of the previous year.
Operational and Financial Highlights
LuxUrban Hotels Inc. (LUXH, Financial) attributes its strong third-quarter performance to its asset-light business model and strategic collaboration with Wyndham Hotels & Resorts, which has accelerated growth and enhanced profitability. The company successfully integrated 17 properties under the Wyndham agreement and expanded its hotel property portfolio, ending the quarter with 1,466 units available for rent. As of November 8, 2023, LuxUrban Hotels Inc. (LUXH) had 1,599 units available for rent and 2,032 units under long-term Master Lease Agreements.
Chairman and Co-Chief Executive Officer Brian Ferdinand expressed optimism about the company's growth trajectory, citing the onboarding of new properties and the expectation of welcoming guests to most of the new rooms by early 2024. The company's balance sheet reflects the strategic steps taken to optimize the business, reduce debt, and build cash reserves. Co-Chief Executive Officer and Chief Financial Officer Shanoop Kothari highlighted the non-dilutive offering of Series A Preferred Stock as evidence of the company's strong financial position and promising outlook.
Guidance for 2023 and 2024
LuxUrban Hotels Inc. (LUXH, Financial) has increased its guidance for net rental revenue and EBITDA for the years ending December 31, 2023, and December 31, 2024. This guidance is based on the company's current business expectations, economic and public health conditions, acquisition pipeline, and forward-looking unit operating metrics.
Leadership Update
On November 8, 2023, Shanoop Kothari was appointed as Co-Chief Executive Officer, sharing responsibilities with Brian Ferdinand. This strategic move is aimed at supporting the company's growth initiatives and delivering long-term shareholder value.
Financial Tables Summary
The financial tables provided in the earnings release offer a detailed view of LuxUrban Hotels Inc. (LUXH, Financial)'s performance. The condensed consolidated statements of operations reveal that the net rental revenue for the three months ended September 30, 2023, was $31,208,248, with a gross profit of $7,812,285. The balance sheets show a healthy liquidity position with cash and cash equivalents of $4,798,580 as of September 30, 2023.
The non-GAAP financial measures, including EBITDA and cash net income, are reconciled with the GAAP net income (loss), providing investors with additional insights into the company's operational efficiency and profitability.
LuxUrban Hotels Inc. (LUXH, Financial) has demonstrated a strong financial performance in Q3 2023, with significant improvements across key metrics. The company's strategic initiatives and partnerships have positioned it for continued growth and profitability, making it an attractive prospect for value investors seeking sustainable investment opportunities.
Explore the complete 8-K earnings release (here) from LuxUrban Hotels Inc for further details.
