• Streamlined Operations and NYC Focus Set the Stage for 2025 Growth
• RevPAR Gains and Optimized Portfolio Highlight Operational Momentum
MIAMI, Jan. 15, 2025 (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 provided a comprehensive corporate update, highlighting recent business achievements and sharing its 2025 revenue guidance and strategic milestones. It has been a transformative year for LuxUrban Hotels, Inc., marked by substantial progress in improving the business, streamlining operations, and building a strong foundation for 2025 growth and profitability.
2024 Business Highlights and Achievements
Over the past year, LuxUrban has taken deliberate steps to improve operational efficiency and financial stability:
- Shedding Unprofitable Leases: Exiting non-performing properties has allowed a stronger focus on high-performing assets.
- Streamlined Operations: Improved operational workflows and implemented cost-saving measures.
- Enhanced Revenue Management: Leveraged data-driven strategies to optimize performance across the hotel portfolio.
- Industry Expertise: Added key personnel with deep experience in hotel operations and revenue management.
- Q4 RevPAR Performance: Same-store RevPAR expected to finish at $242.65 (+7.3%), supported by a strong ADR of $272.81 (+10.3%).
- December 2024 Revenue Growth: Expected to finish +$1.86 million over December 2023, driven by an ADR of $307.60 (+24.1%).
- Market Context: The Upper Midscale NYC market trailing 12 months (November STR) performed at a RevPAR of $200.62, representing growth of 9.6%.
Current Portfolio and 2025 Expectations:
LuxUrban currently operates 9 hotels totaling 1,064 keys, with 855 keys across 8 properties expected to remain in its long-term portfolio:
- Blakely Hotel - 117 rooms
- Tuscany Hotel - 124 rooms
- Washington Hotel - 217 rooms
- The Herald - 166 rooms
- Hotel 27 - 74 rooms
- BeHome - 43 rooms
- The Condor - 35 rooms
- Hotel 46 - 79 rooms
- Hotel 57 - 209 rooms
With robust sales and distribution strategies now in place, combined with fully operational OTA partnerships (Agoda, Booking.com, Google and Expedia) and direct booking capabilities, LuxUrban is positioned to realize RevPAR performance at record levels.
Revenue Outlook for 2025:
- Revenue is projected to range between $62-$67 million, based on 8 properties totaling 855 units.
- RevPAR Growth: 2024 RevPAR performance is expected to finish at $180.60, with 2025 RevPAR projected to reach $216.58, driven by enhanced sales and distribution channels.
Current Initiatives:
- Rebranding and ancillary revenue opportunities.
- Consistent tracking and modeling of RevPAR improvements to enhance performance and shareholder value.
Strategic Focus on NYC
LuxUrban will focus exclusively on New York City, where significant growth opportunities exist:
- NYC remains one of the highest RevPAR performers in the United States.
- Anticipated turnover of migrant hotel contracts, returning 14,000 rooms to the market.
- Continued financing pressures on hotel assets, creating acquisition opportunities in a supply-constrained market.
- Increased tourism activity driving demand for accommodations.
Looking Ahead to 2025
With a sharpened focus on profitable growth, strengthened partnerships, and a robust sales and distribution strategy, LuxUrban Hotels is well-positioned to capitalize on opportunities and deliver record performance in 2025
We thank you for your continued trust and support as we work to create long-term value for all stakeholders.
About LuxUrban Hotels, Inc.:
LuxUrban Hotels, Inc. is transitioning its strategic focus from securing long-term operating rights through Master Lease Agreements (MLAs) to acquiring and managing hotel properties outright. By purchasing hotel assets, LuxUrban seeks to enhance its control over operations and capitalize on ownership-driven value creation. The Company aims to build a robust portfolio of properties in destination cities by leveraging opportunities created by dislocations in commercial real estate markets and the significant volume of debt maturities coming due, often with limited refinancing options for owners.
This strategic pivot allows LuxUrban to move beyond operating rights and focus on full property ownership, providing enhanced long-term stability and the ability to fully capture the financial upside of the real estate assets it owns.
Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). The statements contained in this release that are not purely historical are forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Generally, the words "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "might," "plans," "possible," "potential," "predicts," "projects," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this release may include, for example, statements its ability to improve its working capital and cash flow profiles, enhance its balance sheet and deliver organic revenue growth, scheduled property openings, expected closing of noted lease transactions, the Company's ability to continue 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. The forward-looking statements contained in this release are based on current expectations and belief concerning future developments and their potential effect on the Company. These forward-looking statements are subject to a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results of performance to be materially different from those expressed or implied by these forward-looking statements, including those set forth under the caption "Risk Factors" in our public filings with the SEC, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 15, 2024, and any updates to those factors as set forth in subsequent Quarterly Reports on Form 10-Q or other public filings with the SEC, the base prospectus comprising part of the Registration Statement and when filed, the prospectus supplement filed with respect thereto. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. 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.
For more information, contact:
Investor Relations:
Jeff Ramson, PCG Advisory
Email: Jramson@pcgadvisory.com
Corporate:
Brandon Elster, President
Email: brandon@luxurbanhotels.com
