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LuxUrban Hotels Inc. Signs Master Lease Agreements for the O Hotel in Los Angeles and 101 Bogart Street in Brooklyn, New York
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Rhea-AI Summary
LuxUrban Hotels Inc. (Nasdaq: LUXH) has expanded its portfolio to 17 hotels by signing multi-year Master Lease Agreements for The O Hotel in Los Angeles and 101 Bogart Street in Brooklyn. The O Hotel, a 68-room property, will open in Q1 2023, and 101 Bogart, with 65 units, will open in Q2 2023. These locations target business and vacation travelers and enhance LuxUrban's presence in major cities. The Company's asset-light model allows efficient property management and aims for favorable operating margins while capitalizing on opportunities from hotels affected by COVID-19.
Positive
Expansion to 17 hotels with new leases in key markets.
Long-term agreements enhance stability in operations.
Asset-light model enables efficient management and cost savings.
Strategic locations in Los Angeles and Brooklyn offer growth potential.
Negative
None.
LuxUrban’s National Property Portfolio Expands to 17 Hotels
MIAMI--(BUSINESS WIRE)--
LuxUrban Hotels Inc. (Nasdaq: LUXH) (or “the Company”), which utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities, announced today that it has signed separate, multi-year Master Lease Agreements (MLAs) to operate two short-term stay hotels: The O Hotel in downtown Los Angeles, CA via a 20-year MLA, inclusive of options; and 101 Bogart Street in Brooklyn, NY via a 10-year MLA.
The O Hotel establishes LuxUrban's presence in Los Angeles and 101 Bogart Street increases the Company’s property density in New York City. These short-term stay hotels will be marketed to business and vacation travelers via the Company’s consumer facing LuxUrbanTM brand. Inclusive of these new properties, LuxUrban has 17 short-term stay hotels under lease in Los Angeles, Miami, New Orleans, New York City, and Washington, DC.
“We are thrilled to establish our presence in downtown Los Angeles, which is a market that we expect to further cultivate, while adding a sixth hotel in our largest market, New York City,” said Brian Ferdinand, Chairman and CEO.
The O Hotel, which is expected to commence operations in the first quarter of 2023, is a 68-room boutique property in the heart of LA’s Financial District featuring modern rooms in a unique, historic setting. Built in 1925, the O is within walking distance to most of Downtown LA’s major attractions, including the Microsoft Theater, L.A. Live, the Convention Center, Pershing Square, Disney Concert Hall, and the Music Center. Nearby public transportation provides quick and easy access to Universal Studios, Venice Beach, and Malibu.
101 Bogart Street, which is expected to commence operations in the second quarter of 2023, is a mix-used, seven-story property offering 65 units in East Williamsburg-Bushwick, Brooklyn. The hotel is located in a growing, industrial / art-infused community of startups, entrepreneurs, and freelancers. The area is also home to a burgeoning television and film production industry, as evidenced by the 2022 opening of a 170,000-square-foot state-of-the-art Netflix production facility across the street from 101 Bogart.
“Downtown Los Angeles and Brooklyn offer access to a wide array of cultural, entertainment, and commercial activities, reflective of each region’s improving business and hospitality market,” Mr. Ferdinand continued. “We remain focused on providing our guests with a variety of options, amenities, styles, and locations that suit their needs.”
LuxUrban Hotels Inc.
LuxUrban Hotels Inc. utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities. The Company’s future growth focuses primarily on seeking to create “win-win” opportunities for owners of dislocated hotels, including those impacted by COVID-19 travel restrictions, while providing LuxUrban Hotels favorable operating margins. LuxUrban Hotels operates these properties in a cost-effective manner by leveraging technology to identify, acquire, manage, and market them globally to business and vacation travelers through dozens of third-party sales and distribution channels, and the Company’s own online portal. Guests at the LuxUrban Hotels properties are provided high quality service under the Company’s consumer brand, LuxUrbanTM.
Forward Looking Statements
This press release contains forward-looking statements, including with respect to scheduled property openings, expected closing of noted lease transactions and continued 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. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those set forth under the caption “Risk Factors” in the prospectus forming part of the Company’s effective Registration Statement on Form S-1 (File No. 333-267821). 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.
