LuxUrban Hotels Inc · OTC:LUXPQ
LuxUrban Hotels — Q3 2023 Earnings Presentation
19 slides from LuxUrban Hotels's earnings presentation, Nov 9, 2023
Slide 1: LuxUrban
i LUXURBAN Nasdaq: LUXH, LUXHP
Slide 2: Disclaimer: Forward Looking Statements
2 DISCLAIMER Forward Looking Statements This presentation contains certain “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act
Slide 3: Who We Are
3 Capitalizing on historic opportunity to lease dislocated and underutilized hotels in destination cities at favorable economics Rent out rooms in leased properties to vacation and business travelers Asset light business model: 25+ year operating leases / minimal capital requirements / outsized ROE
Slide 4: At a Glance
4 AT A GLANCE SERVICE Net Rental Revenue $85.9 $120 - $125 $265 - $270 9 Mo. 9/30/23 2023 (E) 2024 (E) $43.8 2022 $20.6 $27 - $32 $60 - $70 9 Mo. 9/30/23 2023 (E) 2024 (E) $8.3 2022 EBITDA $15.1 9 Mo. 9/30/23 $(0.4) 2022 Cash Net Income Net Rental Revenue CAGR 2022 - 2024 (E)* EBITDA CAGR 2022 - 202
Slide 5: Asset Light Growth Strategy
5 ASSET LIGHT GROWTH STRATEGY SERVICE Streamline operations Lease hotel using refundable security deposit or L etter of Credit Maximize occupancy rates and increase cash flow Identify low - cost, long - term (target 25 - 35 years) Triple Net Lease lease opportunities at dislocated hotel properties A
Slide 6: Property Overview
6 PROPERTY OVERVIEW SERVICE 680 1,446 June 30, 2024 (E) Q4 2022 9 Mo. 2023 2023 (E) 2024 (E) New Orleans Washington, DC Los Angeles Miami Beach New York 1 1 1 5 8 September 30, 2023 16 properties operational 1,446 units available for rent November 2023 21 properties under lease** 2 ,032 units* New O
Slide 7: Unit Economics
7 UNIT ECONOMICS RevPAR defined as: revenue per available unit (net revenue / avg. units available during the period) 2019 2020 2021 2022 9 Mo. 2023 (E) 2023 2019 2020 2021 2022 9 Mo. 2023 RevPAR ($) Occupancy (%) 84% 61% 72% 77% 81% $103 $157 $122 $247 $250 - $280 $150 - $160/night RevPAR property
Slide 8: Wyndham Collaboration Overview
8 WYNDHAM COLLABORATION OVERVIEW 95+ Countries ~9,100 Hotels 24 Global Brands 852,000 Rooms Initial 17 LuxUrban Hotels onboarded to Wyndham platform Opportunity to introduce additi o nal properties into the brand throughout course of relationship Term of 15 - 20 years, with LuxUrban maintaining oper
Slide 9: Wyndham Collaboration Benefits
9 WYNDHAM COLLABORATION BENEFITS Margin Capitalize on Wyndham’s world class operating infrastructure to realize significant primary and secondary costs savings RevPAR Wyndham brand power, sales / distribution platform, and customer reach expected to drive revenue at each acquired property Financing
Slide 10: Wyndham Collaboration Overview: Individuality, backed by the world's largest hotel company
10 WYNDHAM COLLABORATION OVERVIEW Individuality , backed by the world’s largest hotel company 1 102% RevPAR index outperforms its upper midscale competition 2 62% total U.S. central reservations contribution with 35% of total stays contributed by WR members 96% of hotels with 3.5+ on TripAdvisor giv
Slide 11: Potential Valuation
11 POTENTIAL VALUATION LUXH equity upside is significant based on current market 2024E EBITDA multiples Significant potential equity appreciation opportunity over the coming months
Slide 12: Property Acquisition Math
12 Avg. acquisition cost / unit $13,465 2023 YTD RevPar $274 YTD EBITDA Margin 24% Payback period* 6 months PROPERTY ACQUISITION MATH Six - month payback period on acquisition capital deployed. * Payback period: $13,465 avg. acquisition cost / [($274 RevPar * 365 days * 24% EBITDA margin) / 12 month
Slide 13: Wyndham "Key Money" Math
13 WYNDHAM “KEY MONEY” MATH ($ in thousands) Capital Invested 7,500$ 10,000$ 12,500$ 3,750$ 5,000$ 6,250$ 1,875$ 2,500$ 3,125$ 938$ 1,250$ 1,563$ 469$ 625$ 781$ 234$ 313$ 391$ 117$ 156$ 195$ 59$ 78$ 98$ 29$ 39$ 49$ 15$ 20$ 24$ 7$ 10$ 12$ Total 14,993$ 19,990$ 24,988$ Illustrative Wyndham Math The O
Slide 14: Appendix
14 APPENDIX The Bogart Hotel Brooklyn, NY
Slide 15: The Addressable Market
15 THE ADDRESSABLE MARKET Historic Timing Opportunity and Growing Pipeline Volume of Maturing Commercial Property Loans by Lender Type Front - loaded maturity wall Source: https://nypost.com/2023/04/10/default - risk - grows - on - 1 - 5 - trillion - in - commercial - real - estate - debt - analysts
Slide 16: Q3 2023 Financial Overview
16 Q3 2023 FINANCIAL OVERVIEW ($ in Ms ) SERVICE Record net rental revenue and EBITDA First ever quarterly GAAP net income 1,446 units available for rent Net Rental Revenue Cash and equivalents T otal Debt Shareholders’ Equity Net Income EBITDA $31.2 $11.6 $4.9 $ (3.2) $8.4 $2.4 Q3 2023 v. Q3 2022 S
Slide 17: Financial Results Overview
17 FINANCIAL RESULTS OVERVIEW ($ in 000s; unaudited) 9 Mo. 2022 9 Mo. 2023 Q3 2022 Q3 2023 Condensed Consolidated Statements of Operations $ 30,876 $ 85,884 $ 11,575 $ 31,208 Net Rental Revenue $ 10,259 $ 23,353 $ 4,889 $ 7,812 Gross Profit $ 6,818 $ 9,297 $ 4,953 $ 1,982 General and Administrative
Slide 18: Reconciliation Tables: Net Loss to EBITDA and Cash Net Income
18 RECONCILIATION TABLES Net Loss to EBITDA and Cash Net Income
Slide 19: Reconciliation Tables: Net Loss to EBITDA and Cash Net Income
19 RECONCILIATION TABLES Net Loss to EBITDA and Cash Net Income