LuxUrban Hotels has recorded a net income of $4.93m in the third quarter (Q3) of 2023, as against a net loss of $3.21m in the same quarter a year ago.
The company’s net rental revenue for the latest quarter ending 30 September 2023 was $31.20m, up by roughly 170% from $11.57m in the corresponding period of 2022.
This rise was due to the increase in the average units available to rent from 571 to 1,423, as well as the enhanced revenue per available room during the latest reported period.
Total operating expenses stood at $2.72m in Q3 2023, while it was $5.31m in Q3 2022.
The earnings per common share in Q3 2023, both basic and diluted, was $0.11 as against a loss per common share of $0.13 in the comparable year-ago period.
The earnings before interest, taxes, depreciation and amortisation (EBITDA) was $8.41m, compared with $2.36m in the same period a year earlier.
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LuxUrban Hotels co-CEO and chairman Brian Ferdinand said: “We delivered a very strong Q3, highlighted by significant increases in net rental revenue and EBITDA, our first-ever quarter of GAAP net income and an expanded hotel property portfolio.
“Our collaboration with Wyndham Hotels & Resorts has placed us on an accelerated glide path for growth by allowing us to target and acquire the operating rights to a wider variety of hotels, including larger properties and generating efficiencies that enhance profitability.”
For the year ending 31 December 2023, the company expects its net rental revenue to be in the range of $120m to $125m and its EBITDA to be between $27m and $32m.
Additionally, the total hotel rooms under long-term master lease agreements (MLA) are expected to be in the range of 2,500 to 3,000 units.
Ferdinand further added: “We have successfully onboarded the 17 initial properties under the Wyndham agreement and are in the process of integrating additional hotels to the Wyndham brand family and operating platform. We ended the quarter with 1,466 units available for rent.”