Agreements Add 292 Units to LuxUrban’s Property Portfolio
LuxUrban Hotels Inc. (Nasdaq: LUXH) (or “the Company”), 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 that it has signed separate agreements to enter into 35-year Master Lease Agreements (MLAs), each inclusive of two five-year options, to operate two new properties in New York City’s Times Square: The Hotel at Times Square and Hotel 46 Times Square. Each of these properties will operate under the Company’s LuxUrban brand.
The Hotel 46 Times Square, consisting of 79 rooms, and The Hotel at Times Square, consisting of 213 rooms, allows guests to experience New York City from the “Crossroads of the World.” Each of these properties provides easy access to Broadway, Central Park, Radio City Music Hall, Rockefeller Center, and Madison Square Garden, along with iconic restaurants, Fifth Avenue shopping, and Manhattan nightlife. The Hotel 46 Times Square is expected to begin welcoming guests during the third quarter of 2023 and the Hotel at Times Square is expected to begin welcoming guests during the fourth quarter of 2023.
“With the addition of these two new properties, the number of units in our asset light portfolio of hotel rooms approximates 2,100 and properties under MLA has increased to 22,” said Brian Ferdinand, Chairman and CEO of LuxUrban Hotels. “Times Square represents the vibrancy and energy that defines New York City, drawing an estimated 50 million visitors annually. We are excited to add further density in our primary market of New York City to accommodate anticipated rising levels of business and leisure travel.”
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 March 31, 2023, the company has 1,034 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 forward-looking statements, including with respect to the anticipated success of the transactions contemplated by this press release, ability to commence operations on the terms and timing that the Company expects, expectations regarding New York City visitor growth, expectations regarding future leasing activity, expected units operational, and the Company’s ability to commercialize efficiently and profitably the properties it leases and will lease in the future. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, 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. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, leasing terms, high-level occupancy rates, and sales and growth plans. The financial projections provided herein are based on certain assumptions and existing and anticipated market, travel and public health conditions, all of which may change. 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.