MIAMI, Sept. 25, 2024 (GLOBE NEWSWIRE) -- LuxUrban Hotels Inc. (NASDAQ:LUXH), a hospitality company that leases entire hotels on a long-term basis, manages these hotels, and rents out rooms to guests in the properties it leases, today announced its financial results for the second quarter ended June 30, 2024 ("Q2 2024"). The Company has also submitted its quarterly report on Form 10-Q to the U.S. Securities and Exchange Commission.
Q2 2024 Financial Overview:
Net Rental Revenue: $18.2 million, compared to $31.9 million in Q2 2023.
Gross (Loss) Profit: $(22.2) million, compared to a profit of $10.2 million in Q2 2023, impacted by increased rent expenses, surrender of deposits from exiting properties, and other increased operational costs. We have streamlined our hotel portfolio to exclude underperforming properties and now manage 9 hotels with a total of 1,056 rooms.
Total Operating Expenses: $4.2 million, compared to $5.4 million in Q2 2023, reflecting efforts to realign cost structures.
Net Loss: $(26.8) million, compared to a net loss of $(26.8) million in Q2 2023.
Rob Arigo, Lux Urban Hotels CEO, commented: "In 2024, we launched a comprehensive initiative to enhance our company's management and operations, which we refer to as LuxUrban 2.0. Our strategy was focused on the strategic elimination of non-performing hotel properties, and targeted efforts to reduce operating overhead. As part of our recent Lux 2.0 transition, we strengthened our management and operations teams through recruiting talented directors and officers with significant experience in the hospitality and financial sectors. While significant work remains as we navigate the end of 2023, and legacy operations will continue to present exposure and challenges, we are implementing transformative changes within LuxUrban that will enhance our financial stability and provide a solid foundation for future growth."
Operational Highlights:
Key initiatives include revenue optimization, expense reduction, re-branding, and a focus on long-term Master Lease Agreements, eliminating traditional fees.
Refinement of Hotel Portfolio:
LuxUrban Hotels has refined its portfolio and focused its geographic operations around New York City. The company is now operating 9 properties with a total of 1,025 units available.
Cost Management Initiatives:
In Q2 ...
