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Luxurban Hotels Inc. (LUXH)
:LUXH
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LuxUrban Hotels
(OTC:LUXH)
29Underperform
LuxUrban Hotels (LUXH) vs. S&P 500 (SPY)
Market Cap
$1.05M
Dividend YieldN/A
Average Volume (3M)80.78K
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth-26.35%
EPS Growth-169.63%
CountryUS
Employees357
SectorConsumer Cyclical
Sector Strength58
IndustryTravel Lodging
Share Statistics
EPS (TTM)-201.72
Shares Outstanding12,737,493
10 Day Avg. Volume53,375
30 Day Avg. Volume80,779
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
LuxUrban Hotels Business Overview & Revenue Model
Company DescriptionLuxUrban Hotels (LUXH) is a hospitality company that specializes in providing premium accommodation experiences. The company operates in the travel and tourism sector, focusing on offering upscale hotel services to both business and leisure travelers. LuxUrban Hotels distinguishes itself through a commitment to luxury, comfort, and personalized service, catering to a diverse clientele with its high-end properties located in key urban destinations.
How the Company Makes MoneyLuxUrban Hotels primarily generates revenue through customer bookings for its hotel rooms and suites. This includes both direct bookings via the company's website and mobile app, as well as through third-party travel agencies and online booking platforms. Additional income streams include food and beverage services, event hosting, and premium service offerings such as spa treatments and concierge services. The company may also engage in partnerships with travel agencies and corporate clients, providing discounted rates or exclusive packages that contribute to occupancy rates and overall revenue. LuxUrban Hotels' earnings are influenced by factors such as seasonal travel trends, brand reputation, and the ability to maintain high standards of service and hospitality.
LuxUrban Hotels Financial Statement Overview
Summary
Overall, LuxUrban Hotels is facing substantial financial difficulties, characterized by declining revenues, negative profitability, and high leverage. The company struggles with cash flow generation, raising concerns about its ability to sustain operations without external financing. Strategic changes are needed to improve financial health and stability.Income Statement
LuxUrban Hotels has faced significant challenges in profitability, with negative gross profit and net income in recent periods. The revenue has been decreasing year over year, with the TTM showing a negative revenue growth rate. Margins such as EBIT and EBITDA remain negative, indicating operational inefficiencies and financial distress.20
Very Negative
Balance Sheet
The company has a high debt-to-equity ratio due to negative equity, indicating financial instability and high leverage. The equity ratio is negative, highlighting reliance on debt financing and vulnerability to financial stress. The negative return on equity further indicates a lack of profitability for shareholders.15
Very Negative
Cash Flow
LuxUrban Hotels is experiencing negative operating and free cash flows, which raises concerns about liquidity and operational efficiency. The ratio of operating cash flow to net income shows a poor cash conversion cycle, suggesting difficulties in generating cash from core operations.25
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 87.93M | 113.40M | 43.83M | 21.38M | 8.27M | 5.43M | Gross Profit |
| -58.07M | 8.93M | 12.38M | 2.11M | -2.96M | 722.59K | EBIT |
| -94.20M | -30.54M | -3.46M | -733.88K | -4.07M | -104.20K | EBITDA |
| -132.24M | -29.22M | -1.86M | -606.82K | -4.04M | -103.57K | Net Income Common Stockholders |
| -128.00M | -78.52M | -1.52M | -3.86M | -5.19M | -851.63K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 994.90K | 752.85K | 3.74M | 7.00K | 512.00 | 15.04K | Total Assets |
| 276.69M | 283.29M | 107.96M | 3.77M | 493.01K | 346.68K | Total Debt |
| 240.61M | 253.24M | 100.43M | 8.42M | 3.45M | 1.15M | Net Debt |
| 239.61M | 252.48M | 99.36M | 8.41M | 3.45M | 1.14M | Total Liabilities |
| 289.20M | 286.79M | 111.26M | 14.98M | 8.29M | 2.45M | Stockholders Equity |
| -12.50M | -3.50M | -3.29M | -11.21M | -7.80M | -2.11M |
| Cash Flow | Free Cash Flow | ||||
| -47.88M | -19.12M | -18.48M | -2.68M | -1.24M | 362.83K | Operating Cash Flow |
| -47.95M | -18.28M | -18.29M | -2.67M | -1.24M | 362.83K | Investing Cash Flow |
| -1.87M | -94.54K | -2.85M | -11.50K | 0.00 | 0.00 | Financing Cash Flow |
| 44.12M | 16.95M | 22.21M | 3.79M | 1.22M | -347.79K |
LuxUrban Hotels Technical Analysis
Positive
0.08
Price Trends
0.07
Positive
0.39
Negative
3.36
Negative
Market Momentum
>-0.01
Negative
54.30
Neutral
38.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUXH, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.07, and below the 200-day MA of 3.36, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.30 is Neutral, neither overbought nor oversold. The STOCH value of 38.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUXH.
LuxUrban Hotels Risk Analysis
LuxUrban Hotels disclosed 91 risk factors in its most recent earnings report. LuxUrban Hotels reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LuxUrban Hotels Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.84B | 13.39 | 6.50% | 8.08% | 6.52% | 14.45% | |
75 Outperform | $9.47B | 13.80 | 10.53% | 5.86% | 7.02% | -4.78% | |
68 Neutral | $1.98B | 9.74 | 5.68% | 10.17% | -3.67% | 122.68% | |
63 Neutral | $1.06B | 25.43 | 2.94% | 7.90% | 3.31% | -15.16% | |
60 Neutral | $1.00B | 64.24 | 1.24% | 5.05% | 1.33% | -10.65% | |
60 Neutral | $6.54B | 11.34 | 3.27% | 4.27% | 2.37% | -20.86% | |
29 Underperform | $1.05M | ― | 168.59% | ― | -26.35% | -169.63% |
* Consumer Cyclical Sector Average
Performance Comparison
LUXH
LuxUrban Hotels
0.08
-65.18
-99.88%
HST
Host Hotels & Resorts
13.66
-4.35
-24.15%
RLJ
RLJ Lodging
6.96
-3.66
-34.46%
XHR
Xenia Hotels & Resorts
9.90
-3.78
-27.63%
APLE
Apple Hospitality REIT
11.88
-2.52
-17.50%
PK
Park Hotels & Resorts
9.83
-4.93
-33.40%
LuxUrban Hotels Earnings Call Summary
Earnings Call Date: Apr 1, 2025 | % Change Since: 100.00% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Negative
The earnings call highlighted the launch of the Lux 2.0 initiative and projected future revenue growth, but also revealed significant financial challenges including a steep decline in revenue, increased costs, and a growing working capital deficit.Highlights
Lux 2.0 Initiative Launch
The company launched Lux 2.0, an initiative aimed at enhancing management and operations, recruiting experienced professionals, and strategically eliminating nonperforming hotel properties to generate sustainable positive cash flow.
Strategic Property Management
LuxUrban Hotels currently manages a portfolio of 7 hotels in Manhattan, 1 in Brooklyn, and 1 in New Orleans with 1,056 rooms available for rent, focusing on properties with potential for positive cash flow.
Future Revenue Growth Projections
Projected average room rates for 2025 are expected to rise to $252.11, a $31 increase from the current quarter, following the expiration of presold advanced sales.
Reduction in Operating Expenses
Significant reductions in overhead and labor costs have been made, with a few million dollars saved by cutting back on labor and other expenses.
Lowlights
Revenue Decline
Net rental revenue for the second quarter decreased by 43% from $31.9 million in Q2 2023 to $18.2 million in Q2 2024 due to a decrease in average units available and presold room bookings at lower rates.
Increased Cost of Revenue
Cost of revenue increased by 86%, from $21.7 million in Q2 2023 to $40.4 million in Q2 2024, primarily due to expensing unamortized lease acquisition costs, security deposits surrendered, and higher utility and labor costs.
Gross Profit Decrease
Gross profit decreased by 318%, from $10.2 million in Q2 2023 to a loss of $22.2 million in Q2 2024, impacted by the expensing of unauthorized lease acquisition costs and security deposits surrendered.
Working Capital Deficit
The working capital deficit increased to $62.6 million at June 30, 2024, from $13.4 million at December 31, 2023.
Company Guidance
During the LuxUrban Hotels Q2 2024 earnings call, extensive guidance was provided, highlighting several key metrics and strategic initiatives. The company reported a net rental revenue of $18.2 million, a significant decrease from $31.9 million the previous year, attributed to a reduction in available units and lower booking rates. The average room rate during Q2 was $220.96, with plans to increase this to $252.11 by the end of 2024. The T RevPAR dropped from $257 to $188 year-over-year due to preselling of rooms at lower rates, which is expected to improve once these agreements expire. LuxUrban's cost of revenue soared by 86% due to lease acquisition costs and other operational expenses, while gross profit dropped significantly. The company currently manages nine properties, with 1,056 rooms under long-term leases, and is optimistic about achieving sustainable positive cash flow through its Lux 2.0 initiative, which includes strategic cost-cutting, management restructuring, and focusing on high-growth potential markets like New York. The discussion also touched on plans for a reverse stock split to address NASDAQ compliance issues.LuxUrban Hotels Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
LuxUrban Hotels Reshuffles Leadership and Shifts Strategy
Neutral
Dec 20, 2024
LuxUrban Hotels Inc. has announced significant changes in its board of directors, with the appointment of Brian Ferdinand as the interim Chief Executive Officer and the addition of four new directors: Brandon Elster, Alex Moinian, Daniel Shapiro, and Bradley Theodore. These appointments come after the resignations of several directors and are aimed at reinforcing the company’s leadership and governance. The new directors bring diverse expertise from fields such as real estate development and digital media marketing, which may enhance LuxUrban’s strategic positioning in the hospitality industry. Furthermore, the company has decided not to proceed with a potential joint venture with Lockwood Development Partners LLC, indicating a shift in its strategic priorities.
Delistings and Listing ChangesStock Split
LuxUrban Hotels Announces Reverse Stock Split and Flexibility
Neutral
Nov 15, 2024
LuxUrban Hotels Inc. has announced a one-for-seventy reverse stock split, aiming to enhance its position within Nasdaq Capital Markets and improve trading prospects. This move, approved by stockholders, reduces outstanding shares from approximately 151.85 million to 2.17 million, while also allowing flexibility in issuing additional shares by waiving the 19.99% share limit under Nasdaq rules. The reverse split will take effect on November 20, 2024, maintaining the trading symbol ‘LUXH.’
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.