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New
York, NY – October 2023 / NewsmakerAlert: 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, announces 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)
Miami Beach
-
3-star,
84-room hotel on Collins Avenue
New Orleans
-
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. Visit www.LuxUrbanHotels.com
for more information.
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.
Contacts:
LuxUrban
Hotels Inc.
Shanoop
Kothari
President
& CFO
LinkedIn
The
Equity Group Inc.
Devin
Sullivan
Managing
Director
212-836-9608
LinkedIn |
