Matt Skoan's questions to LUXURBAN HOTELS (LUXH) leadership • Q3 2023
Question
Asked for clarification on the Wyndham funding arrangement, how Wyndham is compensated, the nature of the OTA receivables balance, and the company's confidence in its ambitious future unit growth targets.
Answer
The Wyndham funding is a note that amortizes over the 20-year agreement and is not repaid if LuxUrban performs. Wyndham is paid through various fees, but the relationship is still expected to be accretive to margins by 3-4%. The increase in receivables was a one-time event; going forward it should be 10-15% of quarterly revenue. Confidence in growth targets is high due to a deep pipeline of deals that are far along in the negotiation process.