LuxUrban Hotels Announces that The Royalton by LuxUrban, Trademark Collection® by Wyndham Will Begin Welcoming Guests in January
January 12 2024 - 8:00AM
Business Wire
Company Completes 2024 Capital Plan
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, today announced
that The Royalton by LuxUrban, Trademark Collection® by Wyndham is
expected to begin welcoming guests on or before January 30,
2024.
The Company also announced that it has completed its 2024
Capital Plan. In combination with recent warrant proceeds of
approximately $4 million, gross proceeds of approximately $7
million raised via the previously announced underwritten public
offering of the Company’s 13.00% Series A Cumulative Redeemable
Preferred Stock, and an enhanced Key Money financing program with
Wyndham Hotels & Resorts, the Company intends to accelerate
growth by means of these initiatives. Although the Company will
continue to evaluate market conditions and opportunities, it has no
current plans for any additional equity or debt financings not
previously disclosed.
The Company is pursuing a robust opportunity pipeline and
expects to imminently announce additional large-scale Master Lease
Agreements (MLA) for hotel properties that are scheduled to open
during the first quarter of 2024. The Company expects to have
approximately 3,500-4,000 hotel rooms available for rent under
long-term MLA by the end of the first quarter of 2024 and
approximately 6,000 hotel rooms available for rent under MLA by
June 30, 2024.
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 November 30, 2023 the Company had 2,032
hotel rooms under lease, including properties not yet 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 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 Annual Report on Form 10-K for the year
ended December 31, 2022, and any updates to those factors as set
forth in subsequent Quarterly Reports on Form 10-Q or other public
filings with the SEC. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240111036155/en/
Shanoop Kothari Co-Chief Executive Officer & Chief Financial
Officer LuxUrban Hotels Inc. shanoop@luxurbanhotels.com Devin
Sullivan Managing Director The Equity Group Inc.
dsullivan@equityny.com Conor Rodriguez, Analyst
crodriguez@equityny.com
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