LuxUrban Hotels Inc. (Nasdaq: LUXH) announced yesterday that it has signed a 25-year Master Lease Agreement (MLA), inclusive of two five-year options, to operate the Condor Hotel in Williamsburg, Brooklyn. The Company also signed a 15-year MLA, inclusive of one five-year option, to operate the Trinity Hotel in Los Angeles, California.
The Company expects to commence operations at the Condor Hotel and Trinity on or about July 1, 2023. In total, these new properties will add 214 units to the Company’s portfolio of short-stay hotel rooms.
The Company also announced that effective May 1, 2023 it commenced operations at 101 Bogart Street, a 65-unit, mix-used, seven-story property in East Williamsburg-Bushwick, Brooklyn. 101 Bogart is in a growing, industrial / art-infused community of startups, entrepreneurs, and freelancers that includes a 170,000-square-foot state-of-the-art Netflix production facility.
“New York City is expected to welcome more than 60 million visitors in 2023 and approach pre-pandemic levels of tourism. With the opening of 101 Bogart we are currently operating six hotels in New York City and the expected addition of the Condor will add greater density and diversity to our largest market at an exciting time of growth and recovery,” said Brian Ferdinand, Chairman and CEO of LuxUrban Hotels. “Downtown Los Angeles offers a wide array of cultural, entertainment, and business activities and the region’s improving hospitality market reflects the abundance of opportunities that this bustling commercial and residential hub provides.”
The Condor Hotel, LuxUrban’s second property in Brooklyn, provides an inviting oasis for leisure and business travelers alike. There’s always something to do in Brooklyn – from museums, to parks, to restaurants and bars. The Condor offers guests upscale accommodations, thoughtful amenities, and modern décor at an affordable price.
The Trinity Hotel, which will operate under the “LuxUrban Ultra” brand, is a 179-room property opened in 1914 and was where the Los Angeles Philharmonic orchestra held its first concert in 1919. The property has undergone a complete renovation and is ready to open. Nearby attractions include the Grammy Museum, Museum of Contemporary Art, and Walt Disney Concert Hall.
Mr. Ferdinand continued, “We are in various stages of negotiation with the owners / operators of several select, high-quality properties in new and existing markets, and expect to announce additional closings imminently. Our previously announced debt extension and conversion agreements along with an improving cash flow outlook have positioned us to begin accelerating the pace at which we close these MLAs and commence operations at the associated properties.
“We are also beginning to realize the benefits of a maturing and increasingly efficient operating structure, an elevated industry profile, strong union relationships, and a reputation for quickly executing transactions of size, when necessary. Based on our current forecast, we expect to have approximately 2,000 short-term rental hotel rooms operational at the start of the third quarter of 2023, up from the 1,034 at March 31, 2023, and a significant increase from the 844 units operational at December 31, 2022.”