LuxUrban Hotels to Operate Two New Four-Star Boutique Hotels in New York City

Rhea-AI Summary

LuxUrban Hotels Inc. (Nasdaq: LUXH) has signed 25-year Master Lease Agreements to operate two new boutique hotels in New York City: The Royalton Hotel and the Truss Hotel. The Royalton by LuxUrban is a 168-room boutique property near Times Square, and the Truss Hotel by LuxUrban offers 86 sleek and upscale rooms near Times Square. The company also has a robust pipeline of hotel properties and seeks to have approximately 6,000 hotel rooms under Master Lease Agreements by June 30, 2024.

Positive

• Signed 25-year Master Lease Agreements for two boutique hotels in New York City
• Robust pipeline of hotel properties expected to close by December 2023 through early 2024
• Seeking to have approximately 6,000 hotel rooms under Master Lease Agreements by June 30, 2024

Negative

• None.

The Royalton Hotel and the Truss Hotel Times Square to Begin Welcoming Guests in December

MIAMI--(BUSINESS WIRE)-- 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, today announced that it has signed separate 25-year Master Lease Agreements (MLA), inclusive of two five-year options, to operate two new boutique hotels in New York City: The Royalton Hotel and the Truss Hotel. These properties will be re-branded as “The Royalton by LuxUrban” and “The Truss Hotel by LuxUrban” and are expected to begin welcoming guests early next month. LuxUrban expects both of these properties to be rebranded under the Trademark Collection® by Wyndham name over the next few months.

Royalton Hotel

Recently named one of “Best Hotels Near Times Square” by TimeOut New York, The Royalton by LuxUrban is a 168-room boutique property “Where Good Taste Never Gets Old.” The lobby’s mahogany walls and cognac leather couches evoke a sense of timelessness and historical glamour, while spacious rooms, luxurious suites and penthouse accommodations are comfortably sleek and elegantly outfitted. The Royalton by LuxUrban provides easy access to New York’s Theater District, Grand Central Station, Rockefeller Center, and the shops of Fifth Avenue.

Location: 44 West 44^th Street, New York City.

Truss Hotel

With a modern, sleek, and upscale feel, the 86-room Truss Hotel by LuxUrban offers a prime location just a short walk from Times Square, two blocks from the Jacob K. Javits Convention Center, and within walking distance of Fifth Avenue, Broadway, and Madison Square Garden. The hotel features a Rooftop Garden Terrace with panoramic, spectacular views of Hudson Yards, with guest rooms and spacious suites that offer the ultimate blend of style, comfort, and luxury.

Location: 515 9^th Avenue, New York City.

“These newest hotels add density to our primary market of New York City and increase our portfolio of properties that will be integrated into the LuxUrban operating platform,” said Brian Ferdinand, Chairman and Co-Chief Executive Officer of LuxUrban Hotels. “We are continuing to manage a robust opportunity pipeline and expect to consummate several additional MLAs in the near term.”

Robust Pipeline Opportunity

In addition to these two new properties, the Company has executed Letters of Intent (LOI) and is in the final stages of negotiation to sign MLAs for hotels comprising more than 1,500 rooms. The Company expects that the majority of these property transactions will close in December 2023 through early 2024, with the associated hotels expected to begin welcoming guests in that same time frame.

The Company continues to expect to have approximately 6,000 hotel rooms under MLA by June 30, 2024 that are currently secured under LOI and are expected to convert to MLAs beyond those referenced above.

Property Summary

As of September 30, 2023, the Company leased 16 properties with 1,446 units available for rent.

As of November 30, 2023, the Company leased 20 properties with 1,853 units available for rent and, including properties under lease but not yet available for rent, leased 21 properties with 2,032 units.

The Company’s portfolio of properties effective with the opening of the Royalton Hotel and the Truss Hotel on or around December 1, 2023, is as follows:

Property

# of Units

Property Type

Lease Term

Extension Option

Annual Escalation

Weighted Avg(1)

Weighted Avg(1)

Weighted Avg(1)

As of September 30, 2023

Subtotal Operating Units

1,446

12.6

17.8

3.0%

Properties operating subsequent to 9/30/2023

Hotel 46: 129 West 46th Street, New York, NY 11206

79

Licensed hotel

25.0-year

None

4.2%

Hotel 27: 62 Madison Ave, New York, NY 10016

74

Licensed hotel

15.0-year

10-year

3.0%

Royalton: 44 West 44th Street, New York, NY 10036

168

Licensed hotel

15.0-year

10-year

3.0%

Truss: 515 9th Avenue New York NY 10018

86

Licensed hotel

15.0-year

10-year

3.0%

As of November 30, 2023, pro forma for the opening of Royalton Hotel and Truss Hotel

Subtotal Operating Units

1,853

Properties under lease, not operating

Trinity: 741 8th 851 South Grand Avenue, Los Angeles, CA 90017

179

Under lease

2,032

(1) Averages are weighted by unit count

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 November 30, 2023 the Company had 2,032 hotel rooms under lease, including properties not yet 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 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 Annual Report on Form 10-K for the year ended December 31, 2022, and any updates to those factors as set forth in subsequent Quarterly Reports on Form 10-Q or other public filings with the SEC. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231130130160/en/

Shanoop Kothari

Co-Chief Executive Officer & Chief Financial Officer

LuxUrban Hotels Inc.

shanoop@luxurbanhotels.com



Devin Sullivan

Managing Director

The Equity Group Inc.

dsullivan@equityny.com



Conor Rodriguez, Analyst

crodriguez@equityny.com

Source: LuxUrban Hotels Inc.

FAQ

What is the ticker symbol for LuxUrban Hotels Inc.?

The ticker symbol for LuxUrban Hotels Inc. is LUXH.

How many rooms does The Royalton by LuxUrban have?

The Royalton by LuxUrban is a 168-room boutique property near Times Square.

Where is the location of the Truss Hotel by LuxUrban?

The Truss Hotel by LuxUrban is located at 515 9th Avenue, New York City.

What is the company's strategy for leasing hotels?

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.

How many hotel rooms does the company seek to have under Master Lease Agreements by June 30, 2024?

The company seeks to have approximately 6,000 hotel rooms under Master Lease Agreements by June 30, 2024.