Hotel 57, Condor, and Lafayette Join Wyndham Brand Family
Announces Expected Opening of New Boutique Hotel in New York City in October 2023
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, announced today that the Hotel 57 in New York City, the Condor Hotel in Brooklyn, and the Lafayette Hotel in New Orleans have been re-branded as “The Hotel 57, Trademark Collection® by Wyndham,” “The Condor Hotel, Trademark Collection® by Wyndham,” and “The Lafayette Hotel, Trademark Collection® by Wyndham,” respectively.
Inclusive of these three properties, the Company has onboarded six LuxUrban hotel properties onto the Wyndham brand and operating platform. LuxUrban continues to expect that at least 60% of its hotels will join the Wyndham platform by the end of 2023 third quarter, with the remainder of the portfolio to be added by the end of this year.
Newest Trademark Collection® by Wyndham Properties
Hotel 57 is housed in an historic building in midtown Manhattan, an easy walk to the shops of 5th Avenue, Central Park, Times Square and Rockefeller Center. This 216-room boutique hotel offers quiet accommodations, tasteful décor, and room selection to fit any need.
Just across the bridge is the Condor Hotel in Williamsburg, Brooklyn, a 35-room boutique property that is an upscale oasis for business and vacation travelers looking to explore all that Brooklyn has to offer, including museums, parks, restaurants, and bars.
The Lafayette is an historic 60-unit boutique hotel located on the fashionable St. Charles Avenue Streetcar Line in New Orleans, a short stroll from some of the city’s most popular attractions, including the French Quarter, Bourbon Street, and the Superdome. Located next to the only greenspace in downtown New Orleans, the Lafayette is the perfect blend of urban convenience and natural beauty.
Expected New Property Opening
LuxUrban also expects to open a new property in midtown Manhattan’s Flatiron District by October 15, 2023 via a 25-year Master Lease Agreement inclusive of two five-year extension options. This boutique, 76-room hotel, which is currently closed, is expected to join the Wyndham platform in connection with its planned reopening. This hotel will feature a newly renovated lobby and guest rooms, and offer business and vacation travelers their personal Manhattan pied d’ terre just steps away from iconic local neighborhoods, including Chelsea, Madison Square, Gramercy and Union Square.
This collaboration with Wyndham provides LuxUrban with 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.
“We are very excited to be adding these new properties to the Wyndham brand and operating platform,” said Brian Ferdinand, Chairman, and CEO of LuxUrban Hotels. “We are also happy to be adding density to our primary market of New York City with the planned October opening of our newest hotel, and integrating it under the Wyndham banner.”
The Company expects to have 2,146 hotel units across 21 properties operational by the end of October 2023.
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 the date of this release, the company has approximately 1,625 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 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 financial and operational guidance, 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 10-K for the year ended December 31, 2022 and in Item 1A of our Form 10-Q for the three months ended June 30, 2023. 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.
President & Chief Financial Officer
LuxUrban Hotels Inc.
The Equity Group Inc.