LuxUrban Hotels (US:LUXH) GlobeNewswire News Room·2024-09-25 20:45Core Insights - LuxUrban Hotels Inc. reported a significant decline in net rental revenue for Q2 2024, totaling $18.2 million, down from $31.9 million in Q2 2023 [2] - The company experienced a gross loss of $22.2 million in Q2 2024, compared to a profit of $10.2 million in the same quarter of the previous year, primarily due to increased rent expenses and operational costs [2] - The net loss remained consistent at $(26.8) million for both Q2 2024 and Q2 2023, indicating ongoing financial challenges [2] Financial Overview - Net Rental Revenue: $18.2 million in Q2 2024 vs. $31.9 million in Q2 2023 [2] - Gross (Loss) Profit: $(22.2) million in Q2 2024 vs. $10.2 million profit in Q2 2023 [2] - Total Operating Expenses: $4.2 million in Q2 2024 vs. $5.4 million in Q2 2023 [2] - Net Loss: $(26.8) million in Q2 2024 vs. $(26.8) million in Q2 2023 [2] Operational Highlights - The company has streamlined its hotel portfolio, now managing 9 hotels with a total of 1,056 rooms [2][5] - Key initiatives include revenue optimization, expense reduction, re-branding, and a focus on long-term Master Lease Agreements [4] Strategic Initiatives - LuxUrban 2.0 initiative launched to enhance management and operations, focusing on eliminating non-performing properties and reducing overhead costs [3] - The company has strengthened its management team by recruiting experienced professionals from the hospitality and financial sectors [7] Cost Management - Actions taken in Q2 2024 to reduce operational expenses included renegotiating lease agreements and surrendering non-core properties, leading to non-cash charges [6] Future Outlook - The company aims to optimize revenue management, improve cash flow, and enhance its balance sheet in the second half of 2024, anticipating growth as it enters peak travel seasons [8]