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Jun 30, 2023
Luxurban Q2 2023 Earnings Report
Reported record second quarter financial results with net rental revenue increase and improved EBITDA and cash net income.
Key Takeaways
LuxUrban Hotels Inc. reported a net rental revenue increase to $31.9 million, EBITDA improved to $8.4 million, and cash net income rose to $7.2 million for Q2 2023. The company's net loss of $(26.8) million included $28.5 million of one-time, non-cash financing costs. The company significantly reduced its debt profile and expects a strong second half of the year.
Net rental revenue rose to $31.9 million from $10.2 million.
EBITDA improved to $8.4 million.
Cash net income rose to $7.2 million.
Shareholders’ equity of $13.5 million represented a $16.7 million improvement from December 31, 2022.
Luxurban
Luxurban
Forward Guidance
The Company is reiterating its guidance of net rental revenue of $115 to $120 million and EBIDTA of $25 to $30 million for the year ending December 31, 2023, and for the year ending December 31, 2024 the Company is reiterating net rental revenue and EBITDA guidance of $220 to $240 Million and $48 to $60 million, respectively. The Company also continues to expect that 2,500-3,000 total short-term stay hotel units will be operational by December 31, 2023.
Positive Outlook
- Net rental revenue guidance of $115 to $120 million for 2023.
- EBITDA guidance of $25 to $30 million for 2023.
- Net rental revenue guidance of $220 to $240 million for 2024.
- EBITDA guidance of $48 to $60 million for 2024.
- Expects 2,500-3,000 total short-term stay hotel units will be operational by December 31, 2023.
Challenges Ahead
- 2023 and 2024 guidance does not reflect any expected material positive contribution on net rental revenue and EBITDA generated by the commencement of operations at scheduled new properties.
- 2023 and 2024 guidance does not reflect any expected material positive contribution on net rental revenue and EBITDA generated by the collaboration with Wyndham Hotels & Resorts.
- Financial and operations guidance is based on beliefs and expectations regarding current business, economic, and public health conditions.
- Guidance is based on the status of the Company’s acquisition pipeline and its ability to enter into these potential leases.
- Guidance is based on the current view of forward-looking unit operating metrics.