Tue, May 14, 2:03 PM (310 days ago)
Procaccianti Hotel REIT, Inc. reported its financial results for the quarter ended March 31, 2024. The company, which operates as a REIT, owns five select-service hotel properties. Total revenue for the quarter was $5.36 million, a slight increase from $5.26 million in the previous year, primarily driven by a rise in room revenues from increased occupancy and average daily rates. Rooms revenue rose to $4.84 million from $4.75 million year-over-year. The company saw a net loss of $830,685, slightly higher than the $805,433 loss reported in the same period last year. This was attributed to increased operational expenses, including rooms and property management fees, despite a reduction in corporate general and administrative expenses. Interest expenses also rose to $780,671 due to higher debt service requirements. Cash flow from operations was stable at approximately $825,000, and cash used in investing activities was $361,827, mainly for capital improvements. Financing activities used $1.2 million in cash, primarily for debt repayments and distributions to shareholders. The company's total debt stood at $64.08 million by the end of the quarter. Procaccianti Hotel REIT continues to manage a significant amount of acquisition-related and operational expenses, impacting its profitability. The management is focused on strategic asset management and operational efficiency to navigate the ongoing economic challenges affecting the hospitality sector. Future performance will depend on market recovery, particularly in business travel, and effective cost management.