Fri, Aug 23, 5:19 PM (144 days ago)
Lodging Fund REIT III, Inc. reported a net loss of $1.7 million for Q3 2023, a decrease from $6.8 million in Q3 2022, driven by increased room revenue of $19.8 million compared to $15.2 million. The nine-month net loss was $5.9 million, improving from $13.4 million year-over-year. Revenue per available room (RevPAR) rose to $95.23, reflecting a recovery in lodging demand post-COVID-19. Operating expenses increased due to property acquisitions and inflationary pressures, leading to total property operations expenses of $9.2 million in Q3 2023. Cash provided by operating activities was $6.0 million, contrasting with cash used in 2022. The company has consolidated 19 hotel properties, with a total debt of $192.8 million as of September 30, 2023. The weighted average interest rate on loans is 6.18%. Future operations may be affected by rising interest rates and potential economic downturns. The board has authorized management to pursue an exit strategy for a potential sale or merger by 2025, contingent on favorable market conditions. Concerns about compliance with SEC reporting obligations persist, as does the need for ongoing capital to support operations and acquisitions.