Fri, Aug 23, 5:13 PM (144 days ago)
For the quarter ending June 30, 2023, Lodging Fund REIT III, Inc. reported significant improvements in its financial performance compared to the same period in 2022. Total revenue rose to $20.8 million, driven by a 65% increase in room revenue, reflecting a recovery in demand post-COVID-19, with occupancy rates reaching 73.15%. However, the company incurred a net loss of $276,427, a reduction from a loss of $3.1 million in the previous year, indicating improving operational efficiency. Expenses also increased, primarily due to property operations and management costs associated with recent acquisitions, totaling $18.6 million. Interest expenses surged to $3.9 million, influenced by higher borrowing costs amid rising interest rates. The company maintained a cash balance of $5.7 million and restricted cash of $11.5 million, supporting liquidity. Looking ahead, the REIT faces uncertainties related to economic conditions and rising operational costs. The company is actively pursuing an exit strategy, aiming for a potential sale or merger by 2025, while continuing to manage its debt levels and operational expenses effectively.