LuxUrban Hotels Inc. reports significant decrease in net rental revenue for Q3 2024

From GlobeNewswire: 2024-11-20 07:00:00

LuxUrban Hotels Inc. reported a net rental revenue of $13.1 million for Q3 2024, down from $31.2 million in Q3 2023. The company’s total operating expenses were $12.1 million, with a net loss of $30.7 million, compared to a net income of $4.9 million in Q3 2023.

LuxUrban CEO, Rob Arigo, announced the LuxUrban 2.0 initiative to enhance operational efficiency and financial stability. The company signed a non-binding letter of intent for a joint venture, aiming to inject $7 million in capital and improve guest experiences with advanced technology.

LuxUrban has made key operational changes to increase efficiency, address legacy room rates, and optimize revenue. The company is focusing on long-term master lease agreements, refined its hotel portfolio to New York City, and announced new entertainment offerings at Hotel 57 and Tuscany Hotel to enhance guest experiences. LuxUrban Hotels Inc. closes out 2024 with a strong management team and clear vision for 2025. The company secures long-term operating rights for entire hotels through Master Lease Agreements (MLA), strategically building a portfolio of hotel properties in destination cities. LuxUrban aims to capitalize on the dislocation in commercial real estate markets. LuxUrban’s MLA allows owners to retain equity value while LuxUrban operates and owns cash flows. The company’s forward-looking statements include expectations to successfully launch a joint venture and enhance its balance sheet. LuxUrban cautions that actual results may differ due to risks and uncertainties. Contact Investor Relations for more information.



Read more at GlobeNewswire:: LuxUrban Hotels Inc. Reports Third Quarter 2024 Financial