LuxUrban Hotels Inc.

Greetings and welcome to Lux Urban Hotels Incorporated third quarter 2022 financial results conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Devin Sullivan, Senior Vice President of the Equity Group. Thank you. You may begin.

Thank you, Rob. Good morning, everyone, and thanks for joining us for Lux Urban Hotels' 2022 Third Quarter Financial Results Conference Call. Our speakers for today will be Brian Ferdinand, Chairman and Chief Executive Officer, and Shanubh Katari, the Company's Chief Financial Officer. Before we begin, I'd like to remind everyone that during this call, we will be discussing forward-looking statements, including with respect to the expected closing of noted lease transactions and the continued closing on additional leases for properties in the company's pipeline, as well as the company's anticipated ability to commercialize efficiently and profitably the properties it leases and will lease in the future. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those set forth under the caption risk factors in the prospectus forming part of the company's effective registration statement on Form S-1, file number 333-262-114. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as plans, expects, or does not expect, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, or does not anticipate, or believes, or variations of such words and phrases, or may contain statements that certain actions, events, or results may, could, would, might, or will be taken, will continue, will occur, or will be achieved. Forward-looking information may relate to anticipated events or results including, but not limited to, business strategy, leasing terms, high-level occupancy rate, and sales and growth plans. The financial projections provided herein are based on certain assumptions and existing and anticipated market, travel, and public health conditions, all of which may change. The forward-looking information and forward-looking statements contained in this press release and made during this presentation are made as of the date of the press release, and the company does not undertake to update any forward-looking information and or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. Management will also be discussing non-GAAP financial metrics. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures can be found in the company's press release. With that said, I'd now like to turn the call over to Brian Ferdinand, Chairman and Chief Executive Officer. Brian, please go ahead.

Thank you, Devin, and thank you everyone for joining us this morning. In the third quarter, we continue to deliver on our commitment to creating a growing, sustainable, and profitable company. We delivered record net revenue of $11.6 million and $14.4 million of gross revenue with significant increases in gross profit, rev far, and occupancy rates. As our IPO occurred in this quarter, we had several non-cash warrant and stock expenses we had not seen before as a private company, mostly non-cash in one time. On a cash basis, the business has been net income positive for the last four quarters and the last five quarters EBITDA positive. Excluding these charges, we reported adjusted net income of $600,000 in the third quarter and adjusted EBITDA of $2.4 million. At quarter end, we operated 10 hotels under long-term lease in five cities, Denver, New York, Miami, Los Angeles, and Washington DC. During November, we added over 300 new units and established the presence in New Orleans, Louisiana. This past Friday, we secured the rights to the former Ritz Carlton and Battery Park City in New York, a 298 key five-star hotel. as well are consummating several other high-profile transactions this quarter. We plan to open the former W downtown in New York City on schedule located at 123 Washington Street in New York City this week. We are focused on a capital plan that brings the business to scale while providing shareholders significant value. To that end, we are currently restructuring our pre-IPO private equity investors and debt holders to align their interests directly with their shareholders and create significant long-term shareholder value while providing substantial additional runway into the business over the next year. As we are seeing in real time, our asset light acquisition model is producing a ratio of approximately one to one of every dollar invested into unit growth, which equates to approximately $1 in incremental EBITDA. We now operate approximately 1,200 short-term rental hotel units, all which have been fully funded. As we look to the future, we expect to operate a total of approximately 1,500 short-term rental hotel units by or around December 31st, 2022. The approximately 300 new units we expect to have online by 2023 will be funded by a combination of anticipated operating cash flows and our existing non-dilutive debt facility, 2.5 million of which is currently available. I also want to point out that the net revenue and EBITDA guidance we have provided for 2022 and 2023 assumes no additional unit growth beyond the 1,500 units we expect to have in operation by year end. During the quarter, we hosted approximately 20,000 guests across our portfolio of 10 hotel properties. Based on recently announced acquisitions and our expected timeframes for getting these new properties operational, we continue to believe that we are on pace to exceed 50,000 guests per month across 20 hotel properties to begin 2023. We remain focused on securing the benefits of scale to expand margins, generate positive cash flows, and drive profitability. From a property perspective, we will leverage unit density in cities like New York and Miami It also includes our agreement with Rebel Hotel Company, a premier hospitality management firm. We expect that our partnership with Rebel will deliver margin enhancements that we would not have been able to realize until at least 2024, as well overall direct cost savings into our operations. Finally, I am very excited about the rollout of our corporate rebranding initiative to Lux Urban Hotels. Our name change reflects the culmination of a long planned exit from our legacy apartment rental business, which started in the fourth quarter of 2021. Lux Urban Hotels more accurately reflects who we are today as a provider of short-term rental hotel properties in destination cities for business and leisure travelers. With that, I'll turn it over to Chanute Kothari, our CFO, for financial update.