LuxUrban Hotels Inc., 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 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.