LuxUrban Hotels Inc. Signs Master Lease Agreements for the O Hotel in Los Angeles and 101 Bogart Street in Brooklyn, New York
LuxUrban’s National Property Portfolio Expands to 17 Hotels
MIAMI - LuxUrban Hotels Inc. (Nasdaq: LUXH) (or “the Company”), which utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities, announced today that it has signed separate, multi-year Master Lease Agreements (MLAs) to operate two short-term stay hotels: The O Hotel in downtown Los Angeles, CA via a 20-year MLA, inclusive of options; and 101 Bogart Street in Brooklyn, NY via a 10-year MLA.
The O Hotel establishes LuxUrban's presence in Los Angeles and 101 Bogart Street increases the Company’s property density in New York City. These short-term stay hotels will be marketed to business and vacation travelers via the Company’s consumer facing LuxUrbanTM brand. Inclusive of these new properties, LuxUrban has 17 short-term stay hotels under lease in Los Angeles, Miami, New Orleans, New York City, and Washington, DC.
We are thrilled to establish our presence in downtown Los Angeles, which is a market that we expect to further cultivate, while adding a sixth hotel in our largest market, New York City. Brian Ferdinand, Chairman and CEO
The O Hotel, which is expected to commence operations in the first quarter of 2023, is a 68-room boutique property in the heart of LA’s Financial District featuring modern rooms in a unique, historic setting. Built in 1925, the O is within walking distance to most of Downtown LA’s major attractions, including the Microsoft Theater, L.A. Live, the Convention Center, Pershing Square, Disney Concert Hall, and the Music Center. Nearby public transportation provides quick and easy access to Universal Studios, Venice Beach, and Malibu.
101 Bogart Street, which is expected to commence operations in the second quarter of 2023, is a mix-used, seven-story property offering 65 units in East Williamsburg-Bushwick, Brooklyn. The hotel is located in a growing, industrial / art-infused community of startups, entrepreneurs, and freelancers. The area is also home to a burgeoning television and film production industry, as evidenced by the 2022 opening of a 170,000-square-foot state-of-the-art Netflix production facility across the street from 101 Bogart.
Downtown Los Angeles and Brooklyn offer access to a wide array of cultural, entertainment, and commercial activities, reflective of each region’s improving business and hospitality market,
Mr. Ferdinand continued. We remain focused on providing our guests with a variety of options, amenities, styles, and locations that suit their needs.
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.
