MIAMI, March 26, 2024 (Reuters) – LuxUrban Hotels Inc. (Nasdaq: LUXH, LUXHP), a leading hospitality company specializing in leasing entire existing hotels on a long-term basis and renting rooms to business and vacation travelers, today announced its preliminary unaudited financial results for the fourth quarter (“Q4 2023”) and full year ended December 31, 2023. The Company reported significant growth in key financial metrics, including cash net income, adjusted cash net income, EBITDA, and adjusted EBITDA, which are non-GAAP measures. The Company also provided an update on its strategic initiatives and enhanced audit procedures.
“We have made significant strides in growing the business and believe that the willingness of a highly rated surety bond provider to back LuxUrban is an indication of its support of the Company and a validation of our business model,” said Brian Ferdinand, Chairman of the Board.
Key Financial Highlights for Full Year 2023:
- Net rental revenue rose 160% to approximately $114.0 million from $43.8 million.
- Adjusted EBITDA increased to approximately $30.6 million from $14.3 million.
- Total debt declined to approximately $4.3 million from total debt of $14.0 million.
- Cash Net Income adjusted for non-cash items was $1.6 million compared to $5.6 million in 2022. Adjusted for certain impacts, Cash Net Income was $15.3 million.
Key Financial Highlights for Q4 2023:
- Net rental revenue rose 117% to approximately $28.2 million from $12.9 million.
- Adjusted EBITDA increased to approximately $6.2 million from $5.9 million.
2024 Priorities:
- Increase portfolio of hotels under long-term Master Lease Agreement with a focus on higher-quality 3.5 star to 4.5-star properties.
- Generate increased TRevPAR compared to 2023, driven by portfolio expansion and ancillary revenues.
- Generate increased EBITDA compared to 2023.
- Improve working capital profile, receivables, and cash flow profile.
Enhanced Audit Procedures and Filing Timeline: On the recommendation of the Audit Committee, the Company has expanded its annual audit procedures to adopt a more robust best practices risk and audit procedures protocol. The Company plans to file its Form 10-K within the 15-day grace period.
Conclusion: LuxUrban Hotels Inc. is poised for continued growth and success in 2024, building on its strong performance in 2023. With a focus on strategic growth initiatives and operational efficiencies, the Company is well-positioned to deliver long-term value to its shareholders.
About LuxUrban Hotels Inc.: LuxUrban Hotels Inc. is a hospitality company that leases entire existing hotels on a long-term basis and rents rooms to business and vacation travelers. The Company is committed to delivering exceptional service and value to its guests while maximizing returns for its shareholders. LuxUrban Hotels Inc. is listed on the Nasdaq under the ticker symbols LUXH and LUXHP.
