Q1 2024 LuxUrban Hotels Inc Earnings Call Transcript
Key Points
- Net rental revenue increased by 27.6% to $29.1 million, driven by an increase in average units available.
- LuxUrban Hotels Inc is transitioning back to operating as an independent entity, moving away from its franchise agreement with Wyndham, which is expected to better serve the company operationally and financially in the long term.
- The company is focused on enhancing guest experience and revenue management to improve RevPAR and overall profitability.
- LuxUrban Hotels Inc has a strong occupancy rate of 77% in Q1, with expectations of continued strong performance in urban markets like New York.
- The company is exploring new ancillary income opportunities such as valets, in-room dining concepts, and grab-and-go marketplaces to enhance profitability.
- Total RevPAR declined to 208 from 257 due to the surrender of properties and greater impact of seasonality on the portfolio.
- Reported a gross profit loss of $4.6 million as compared to a gross profit of $5.4 million in the previous year.
- Total operating expenses, including non-cash items, rose significantly to $26.2 million from $18.5 million in the previous year's first quarter.
- Net loss widened to $16.8 million from a net loss of $2.7 million in the previous year, influenced by various non-recurring costs and operational changes.
- Accounts payable and accrued expenses increased significantly, indicating potential liquidity challenges and financial strain.
Ladies and gentlemen, thank you for standing by, and welcome everyone to the LuxUrban Hotels Inc. first-quarter 2024 financial results conference call. (Operator Instructions)
I would now like to hand the call over to Devin Sullivan, Managing Director of The Equity Group. You may begin your conference.
Thank you, Vivesh. Good morning, everyone, and thank you for joining us today for LuxUrban Hotels' 2024 first-quarter financial results conference call. Our speakers for today will be Shanoop Kothari, the company's Chief Executive Officer; and Robert Arigo, Chief Operating Officer.
Before we begin, I'd like to remind everyone that this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 set forth in Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Statements that are not purely historical are forward-looking statements. Forward-looking statements include
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