EX-99.1 2 luxurbanhotels_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

LuxUrban Hotels Signs Master Lease Agreement to Operate

Luxury Hotel in New York City Adding 204 Units to Property Portfolio

 

MIAMI, FL – May 15, 2023 - 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 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                     

 

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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    98 
                               
Total                              
Units   252    1,153    60    95    247    1,807 
Properties   5    10    1    2    2    20 

 

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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.

 

CONTACT

LuxUrban Hotels Inc.  The Equity Group Inc.
Shanoop Kothari  Devin Sullivan, Managing Director
President & Chief Financial Officer  dsullivan@equityny.com
shanoop@luxurbanhotels.com   

 

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