LuxUrban Hotels Inc. (NASDAQ:LUXH) Q4 2023 Earnings Call Transcript

Shanoop Kothari : Yes. So we presold a lot of that inventory earlier part of the year, sort of nature of cash flow management for the business, which we’ve talked about. Also just coming out of a few years at COVID, we take the opportunity when we can. And as we’ve discussed on the Analyst Day, part of our strategy is cancellation revenue. When you’re in a period where the delta between the nightly stay versus the forward numbers are — so why you have very few cancellations, people tend to show up, right? If they feel like they’ve got a great deal on a property, right? So those items are coupled together. As we look to 2024 strategy, we’re resetting that. Look, the benefit of our approach to things is we try not to leave things money on the table.

But if all of a sudden, there’s a huge run on particular locations, especially in New York, we saw in the fourth quarter, we were not able to capitalize on that. It’s a risk-reward standpoint, right? We sold that months before collected that revenue in many cases beforehand as well as deferred revenue versus waiting to the night and hoping that it’s going to be robust. What we’ve seen is New York has continued to be resilient. So we’re changing our approach to things as we look at 2024.

Nehal Chokshi : And then my final question is that looking ahead, I believe you track percent of rooms are being booked on, say, a one, two and three month forward basis. How is that trending relative to year ago levels?

Shanoop Kothari: To a year ago, I think we are booking a little bit more than we were a year ago. I think we’re kind of in the 80s out next month in core properties, which we probably were in the 70s a year ago.

Nehal Chokshi : And what about the ADRs on those?

Shanoop Kothari: ADRs have improved. Obviously, now we’re hitting the spring break season. There’s more — much more demand. We’re seeing an uptick in ADRs. We’re now probably in the mid-200s on average. Now some of that’s benefit of reducing lower performing assets but also some of that is just the snapback that we typically see Q1 to Q2, right? And that tends to continue through the end of the year.

Operator: That concludes our Q&A session. I will now turn the conference back over to Shanoop Kothari for closing remarks.

Shanoop Kothari: Thank you again for your participation. We remain optimistic about the business model opportunities and our prospects. Thank you so much for your interest in the company and joining the call today. Have a great rest of the day. Thank you.

Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.