LuxUrban Hotels Inc · OTC:LUXPQ
LuxUrban Hotels — IPO Roadshow (October 2023)
16 slides from LuxUrban Hotels's IPO roadshow presentation, Oct 16, 2023
Slide 1: Issuer Free Writing Prospectus
1 Nasdaq: LUXH Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Number: 333 - 274308 October 2023
Slide 2: Free writing prospectus legal notice
2 LuxUrban Hotels, Inc. (the “Company”) has filed a shelf registration statement on Form S - 3 (Registration No.: 333 - 274308) (the “Registra tion Statement”) with the Securities and Exchange Commission (the “SEC”) that was declared effective on September 13, 2023. The offering to which this presen
Slide 3: Transaction Summary
3 LuxUrban Hotels Inc . Issuer Nasdaq Capital Market Proposed Exchange LUXHP Proposed Ticker Public Offering Offering Type Series A Cumulative Redeemable Perpetual Preferred Stock Security 400 , 000 – 600 , 000 Expected Shares Offered Range $ 25 . 00 /share Liquidation Preference Fixed . Upon a Deli
Slide 4: Who We Are
4 Capitalizing on a 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
Slide 5: Financial Overview
5 FINANCIAL OVERVIEW ($ in MMs) SERVICE Net Rental Revenue Q3 2022 Q4 2022 Q1 2023 Q2 2023 $31.9 $22.8 $12.9 $11.6 Second Quarter Ended June 30, 2023 December 31, 2022 June 30, 2023 Balance Sheet Summary $ 1.1 $ 3.8 Cash & Cash Equivalents $ 11.5 $ 18.5 Current Assets $ 108.0 $ 217.6 Total Assets $
Slide 6: Asset Light Growth Strategy
6 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 opportunities at dislocated hotel properties Adhere
Slide 7: Property Overview
7 PROPERTY OVERVIEW SERVICE New Orleans Washington, DC Los Angeles Miami Beach New York 1 1 1 5 4 June 30, 2023 1 2 properties operational 1,086 units available for rent August 2023 17 properties under lease* 1,625 units* New Orleans Washington, DC Los Angeles Miami Beach New York 1 1 2 5 8 627 Unit
Slide 8: Unit Economics
8 UNIT ECONOMICS RevPAR defined as: revenue per available unit (net revenue / avg. units available during the period) 2018 2019 2020 2021 2022 6/30 2023 2018 2019 2020 2021 2022 1H 2023 RevPAR ($) Occupancy (%) 86% 84% 61% 72% 77% 80% $160 $103 $157 $122 $247 $291 $150 - $160/night RevPAR property l
Slide 9: Wyndham Collaboration Overview
9 95+ Countries ~9,100 Hotels 24 Global Brands 852,000 Rooms 17 LuxUrban Hotels to join Trademark Collection by Wyndham by Q4 2023, 60% of whi ch should be onboarded by the end of Q3 2023 Opportunity to introduce additi o nal properties into the brand throughout the course of the relationship Term o
Slide 10: Wyndham Collaboration Benefits
10 WYNDHAM COLLABORATION BENEFITS Margin Capitalize on Wyndham’s world - class operating infrastructure to realize significant primary and secondary cost savings RevPAR Wyndham brand power, sales/distribution platform, and customer reach are expected to drive revenue at each acquired property Financ
Slide 11: Wyndham Collaboration Overview
11 Individuality , backed by the world’s largest hotel company 1 102% RevPAR index outperforms its upper - midscale competition 2 62% of total U.S. central reservations contribution with 35% of total stays contributed by WR members 96% of hotels with 3.5+ on TripAdvisor gives guests confidence to bo
Slide 12: Property Acquisition by the Numbers
12 Avg. acquisition cost / unit $13,554 2023 YTD RevPar $291 YTD EBITDA Margin 25% Payback period* 6 months Six - month payback period on acquisition capital deployed. * Payback period: $13,554 avg. acquisition cost / ($291 RevPar * 365 days * 25% EBITDA margin) / 12 months PROPERTY ACQUISITION BY T
Slide 13: Wyndham Key Money Math
13 ($ 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 Hotel Los Angeles, CA Thi
Slide 14: Key Investment Considerations
14 KEY INVESTMENT CONSIDERATIONS The Bogart Hotel Brooklyn, NY Successful l y capitalizing on a “once - in - a - generation” acquisition of distressed hotel properties in destination markets Asset light approach + disciplined acquisition criteria + focus on turnkey properties driving significant gro
Slide 15: Management Bios
15 MANAGEMENT BIOS The Washington Hotel New York, NY BRIAN FERDINAND CO - FOUNDER, CHIEF EXECUTIVE OFFICER, AND CHAIRMAN OF THE BOARD OF DIRECTORS • Founded the company in 2017 , served as Chairman and Chief Executive since that time • More than 2 2 years of business and industry experience, includi
Slide 16: Thank You
16 THANK YOU Alexander Capital, L.P. Christopher Carlin Head of Capital Markets ccarlin@alexandercapitallp.com (646) 787 - 8890