Company Expects to Add More than 1,600 Rooms to its Growing Portfolio by December 31, 2023
LuxUrban Hotels Inc. (“LuxUrban” or the “Company”) (Nasdaq: LUXH), which utilizes an asset-light business model to lease entire hotels on a long-term basis and rent out hotel rooms in these properties in key major metropolitan cities, announced today the openings of three previously announced hotels in New York City acquired under long-term Master Lease Agreements (MLA). Two of the hotels are in Times Square and the third is located in the Flatiron District. These hotels, comprised of an aggregate 368 rooms, will join the Wyndham Hotels & Resorts (“Wyndham”) brand family as “by LuxUrban, Trademark Collection® by Wyndham” and be onboarded to the Wyndham operating platform. They will also contribute to LuxUrban’s fourth quarter 2023 operating results.
With these openings, the Company currently has 1886 rooms welcoming guests.
The Company also announced that it expects to add under long-term MLA seven additional properties comprised of 1,604 rooms during the fourth quarter of 2023. These properties, summarized below, will join the Wyndham brand family, and be onboarded to the Wyndham operating platform.
New York City
- 4-star, 725-room hotel in Midtown (east side)
- 4-star, 168-room hotel in Bryant Park
- 4-star, 200-room hotel in Times Square
- 3.5 star, 145-room hotel on the Upper West Side of Manhattan
- 3-star, 86-room hotel in Midtown (west side)
- 3-star, 84-room hotel on Collins Avenue
- 4-star, 196-room hotel in the French Quarter
“These seven properties, once acquired under long-term MLA, will add density to our existing markets and deliver a substantial contribution to our results in 2024 and beyond,” said Brian Ferdinand, Chairman and CEO of LuxUrban Hotels. “Because of Wyndham’s support, we are now able to target and acquire larger properties, as evidenced by the 4-star, 725-room hotel located on Manhattan’s east side that we expect to acquire during the current fourth quarter. This would be our largest property acquisition to date; however, we believe that it reflects the opportunity to acquire properties of similar size as we continue to grow and evolve as a company.”
The Company continues to expect to have 2,146 hotel units across 21 properties operational by the end of October 2023. This estimate excludes the seven hotels it expects to acquire under MLA throughout the 2023 fourth quarter.
LuxUrban’s collaboration with Wyndham provides numerous competitive and operating advantages, including industry best-in-class services and business support, an elevated profile through its affiliation with the world’s largest hotel franchising company, and access to the more than 100 million members of the Wyndham Rewards® hotel rewards program. LuxUrban has also received capital from Wyndham via key money for each of these properties that the Company will deploy to help elevate the customer experience, enhance the asset value, and drive RevPAR as well growth and working capital back into the business.
LuxUrban Hotels Inc.
LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases to business and vacation travelers through the company’s online portal and third-party sales and distribution channels. The company currently manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans and Los Angeles. As of the date of this release, the company has approximately 1,625 hotel rooms available for rent, and seeks to rapidly build its portfolio on favorable economics through the acquisition of additional accommodations that were dislocated or are underutilized as a result of the pandemic and current economic conditions. In late 2021, the company commenced the process of winding down its legacy business of leasing and re-leasing multifamily residential units, as it pivoted toward its new strategy of leasing hotels. This transition has been substantially completed.
Forward Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). The statements contained in this release that are not purely historical are forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Generally, the words “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this release may include, for example, statements with respect to financial and operational guidance, the success of the Company’s collaboration with Wyndham Hotels & Resorts, scheduled property openings, expected closing of noted lease transactions, the Company’s ability to continue closing on additional leases for properties in the Company’s pipeline, as well the Company’s anticipated ability to commercialize efficiently and profitably the properties it leases and will lease in the future. The forward-looking statements contained in this release are based on current expectations and belief concerning future developments and their potential effect on the Company. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements are subject to a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results of performance to be materially different from those expressed or implied by these forward-looking statements, including those set forth under the caption “Risk Factors” in our public filings with the SEC, including in Item 1A of our 10-K for the year ended December 31, 2022 and in Item 1A of our Form 10-Q for the three months ended June 30, 2023. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this 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.