LuxUrban Hotels Inc. Provides Net Revenue and EBITDA Guidance for 2022 and 2023
LuxUrban Hotels Inc. (NASDAQ: LUXH) announced its net revenue guidance for 2022 and 2023, projecting
- Projected 2023 net revenue of $100 - $110 million, significantly increasing from 2022 guidance.
- Engagement of new credit card processor expected to reduce processing fees by approximately 400 basis points.
- Release of approximately $5.5 million in retained funds due to the new credit processing agreement.
- None.
Expects 2022 Net Revenue of
Expects 2023 Net Revenue of
Enters New Credit Card Processing Relationship
“We are very excited at the pace of our ongoing shift to acquiring, via long-term Master Lease Agreements, short-term rental hotel units in destination cities,” said
Guidance: 2022-2023 Net Revenue and EBITDA
For the years ending
-
Full Year 2022 (based on its current operating portfolio of approximately 1,200 short-term rental hotel units): Net revenue of
-$42 , and EBITDA of$46 million -$7 .$9 million -
Full Year 2023: Net revenue of
-$100 , and EBITDA of$110 million -$16 , based on its expectation that it will operate approximately 1,500 short-term rental hotel units by or around$20 million December 31, 2022 .
In addition to the existing and anticipated additional units discussed above, this guidance is based on, among other factors, the Company’s current business, economic, and public health conditions; the status of its acquisition pipeline and its ability to close on these potential acquisitions; and its current view of forward-looking unit operating metrics.
“The approximately 1,200 units that are currently in operation have been fully funded,”
The Company’s guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under “Forward-Looking Statements.”
Engages New Credit Card Processor
The Company has engaged a new credit card processing company, which it expects to be fully operational across its portfolio by or around
Forward Looking Statements
This press release contains forward-looking statements, including with respect to the expected closing of noted lease transactions and continued closing on additional leases for properties in the Company’s pipeline, as well the Company’s anticipated ability to commercialize efficiently and profitably the properties it leases and will lease in the future. These forward-looking statements and the guidance provided herein are subject to a number of risks, uncertainties and assumptions, including those set forth under the caption “Risk Factors” in the prospectus forming part of the Company’s effective Registration Statement on Form S-1 (File No. 333-262114). Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, leasing terms, high-level occupancy rates, and sales and growth plans. The financial projection provided herein are based on certain assumptions and existing and anticipated market, travel and public health conditions, all of which may change. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
The Company seeks to achieve profitable, long-term growth by monitoring and analyzing key operating metrics, including EBITDA. The Company defines EBITDA as net income before interest, taxes, and depreciation. The Company’s management uses this non-GAAP financial metric and related computations to evaluate and manage the business and to plan and make near and long-term operating and strategic decisions. The management team believes this non-GAAP financial metric is useful to investors to provide supplemental information in addition to the GAAP financial results. Management reviews the use of its primary key operating metrics from time-to-time. EBITDA is not intended to be a substitute for any GAAP financial measure and as calculated, may not be comparable to similarly titled measures of performance of other companies in other industries or within the same industry. The Company’s management team believes it is useful to provide investors with the same financial information that it uses internally to make comparisons of historical operating results, identify trends in underlying operating results, and evaluate its business.
The Company has historically calculated, and plans in the future to calculate, EBITDA as follows: net income or loss, adjusted for the provision for taxes, interest and financing costs, further adjusted for depreciation and amortization (including the amortization of debt discounts and stock compensation expense). For purposes of the guidance provided herein, however, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation could not be accomplished without unreasonable effort. Non-GAAP measures for future periods which cannot be reconciled to the most comparable GAAP financial measures are calculated in a manner which is consistent with the accounting policies applied in the Company’s consolidated financial statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221107006154/en/
Chief Financial Officer
(212) 836-9608
dsullivan@equityny.com
(212) 836-9628
dshayne@equityny.com
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FAQ
What are LuxUrban Hotels' revenue projections for 2023?
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What savings does LuxUrban expect from its new credit card processor?
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