LuxUrban Hotels Signs Master Lease Agreement to Operate Luxury Hotel in New York City Adding 204 Units to Property Portfolio
MIAMI, May 15, 2023--(BUSINESS WIRE)--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 a 25-year Master Lease Agreement (MLA), inclusive of two five-year options, to operate Hotel 57 in midtown Manhattan ("Hotel 57"). The Company expects to commence operations at Hotel 57 during the current second quarter of 2023.
Hotel 57, which will operate under the "LuxUrban Ultra" brand, is a four-star, 204-unit property housed in an historic building on 57th Street in midtown Manhattan. Hotel 57 offers quiet accommodations and upscale amenities in one of the most desirable locations in New York City, providing easy access to the world-famous shops of 5th Avenue, Central Park, St. Patrick’s Cathedral, and Rockefeller Center.
"This latest property will be among the finest in our portfolio," said Brian Ferdinand, Chairman and CEO of LuxUrban Hotels. "Hotel 57 will join our previously announced planned opening of the Condor Hotel in Brooklyn on or about July 1 and result in LuxUrban operating eight hotels in New York City. This growth is coming at an opportune time, as business and leisure travel in New York City is on the rise and approaching pre-pandemic levels of tourism."
Updated Property Summary
As of March 31, 2023, we leased 12 properties with 1,034 units available for rent. As of May 15, 2023, we leased 20 properties with 1,807 units and our portfolio is as follows:
Property | # of | Property | Lease | Lease | Extension | Annual | Date | ||||||||||||||
1200 O: 1200 Ocean Dr Miami Beach, FL 33139 | 24 | Entire building, licensed for hotel like Rentals | 10-year | 3.8 | None | 3 | % | 12/31/2016 | |||||||||||||
Blakely: 136 W 55th St, New York, NY 10105(1) | 117 | Licensed hotel | 15-year | 13.6 | 10-year | 3 | % | 11/1/2021 | |||||||||||||
Herald: 71 W 35th St, New York, NY 10001 | 168 | Licensed hotel | 15-year | 14.2 | None | 3 | % | 6/2/2022 | |||||||||||||
Variety: 1700 Alton Rd Miami Beach, FL 33139 | 68 | Licensed hotel | 5.5-year | 3.5 | None | 3 | % | 3/26/2021 | |||||||||||||
Impala / Flora: 1228 Collins Ave, Miami Beach, FL 33139 | 48 | Licensed hotel | 5-year | 3.5 | 10-year | 3 | % | 10/1/2021 | |||||||||||||
Astor: 956 Washington Ave, Miami Beach, FL 33139 | 42 | Licensed hotel | 5-year | 4.0 | 5-year | 4 | % | 4/15//2022 | |||||||||||||
Georgetown: 1000 29th St NW, Washington, DC 20007 | 79 | Licensed hotel | 10-year | 9.3 | 10-year | 3 | % | 8/1/2022 | |||||||||||||
Lafayette: 600 St Charles Ave, New Orleans, LA 70130 | 60 | Licensed hotel | 19.4-year | 19.0 | None | 2 | % | 11/1/2022 | |||||||||||||
Woodley: 2869 28th Street Northwest, Washington, DC 20008 | 16 | Licensed hotel | 10-year | 9.5 | 10-year | 2.5 | % | 9/1/2022 | |||||||||||||
Washington: 8 Albany Street, New York, NY 10006 | 217 | Licensed hotel | 15.2-year | 14.9 | None | 2 | % | 9/20/2022 | |||||||||||||
Townhouse: 150 20th St, Miami Beach, FL 33139 | 70 | Licensed hotel | 11.2-year | 11.1 | 10-year | 3 | % | 3/1/2023 | |||||||||||||
Tuscany: 120 E 39th Street, New York, NY 10016 | 125 | Licensed hotel | 15.0-year | 14.8 | 10-year | 2 | % | 1/1/2023 | |||||||||||||
Weighted | Weighted | Weighted | (1) | Weighted | |||||||||||||||||
Subtotal Operating Units as of 3/31/2023(2) | 1,034 | 13.0 | 12.1 | 16.7 | 2.6 | % | |||||||||||||||
O Hotel: 819 South Flower Street, Los Angeles, CA 90017 | 68 | Licensed hotel | |||||||||||||||||||
Bogart: 101 Bogart Street, Brooklyn, NY 11206 | 65 | Licensed hotel | |||||||||||||||||||
Be Home: 741 8th Avenue, New York, NY 10036 | 44 | Licensed hotel | |||||||||||||||||||
Trinity: 741 8th 851 South Grand Avenue, Los Angeles, CA 90017 | 179 | Licensed hotel | |||||||||||||||||||
Condor: 56 Franklin Ave, Brooklyn, NY 11205 | 35 | Licensed hotel | |||||||||||||||||||
Hotel 57: 130 East 57th Street, New York, NY 10022 | 204 | Licensed hotel | |||||||||||||||||||
Hanbee Hotel: 231 Grand St, New York, NY 10013 | 101 | Licensed hotel | |||||||||||||||||||
MB Hotel: 63 Chrystie St, New York, NY 10002 | 77 | Licensed hotel | |||||||||||||||||||
Under lease | 1,807 |
(1) | Averages are weighted by unit count. |
(2) | The average remaining term on our properties, as of March 31, 2023, was 12.1 years, and inclusive of extension options was 16.7 years. |
Our units by location as of May 15, 2023 are as follows:
Location | Miami Beach | New York | NOLA | DC | LA | Total | ||||||||||||||||
Units | 252 | 627 | 60 | 95 | - | 1,034 | ||||||||||||||||
Properties at March 31, 2023 | 5 | 4 | 1 | 2 | - | 12 | ||||||||||||||||
Properties added after March 31, 2023 | ||||||||||||||||||||||
Units | - | 526 | - | - | 247 | 773 | ||||||||||||||||
Properties | - | 6 | - | - | 2 | 8 | ||||||||||||||||
Total | ||||||||||||||||||||||
Units | 252 | 1,153 | 60 | 95 | 247 | 1,807 | ||||||||||||||||
Properties | 5 | 10 | 1 | 2 | 2 | 20 | ||||||||||||||||
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.
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Contacts
LuxUrban Hotels Inc.
Shanoop Kothari
President & Chief Financial Officer
shanoop@luxurbanhotels.com
The Equity Group Inc.
Devin Sullivan, Managing Director
dsullivan@equityny.com
