LuxUrban Hotels Signs Master Lease Agreement to Operate Luxury Hotel in New York City Adding 204 Units to Property Portfolio
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.
“This latest property will be among the finest in our portfolio”Tweet this
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
Units
Property
Type
Lease
Term
Lease
Remaining
at 3/31/23
(years)
Extension
Option (remaining
at
3/31/23)
Annual
Escalation
Date
Commenced
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
Avg.
Weighted
Avg.
Weighted
Avg.
(1)
Weighted
Avg.
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.
