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 Blakely Hotel in New York City has been re-branded as “The Blakely by LuxUrban, Trademark Collection® by Wyndham.” The Blakely is the first LuxUrban property to integrate under the Wyndham Hotels & Resorts (“Wyndham”) brand family and join the world’s largest hotel franchisor.
As previously announced, LuxUrban entered into an agreement with Wyndham under which 16 of its hotels will be added to the Trademark Collection® by Wyndham brand. LuxUrban expects to open at least 60% of its current hotels under the Trademark Collection banner during the third quarter of 2023, with the balance of its properties scheduled to be integrated by the end of the 2023 fourth quarter.
The Blakely by LuxUrban, Trademark Collection® by Wyndham is a 117-room, English-style boutique hotel located just north of Times Square providing easy access to popular New York City attractions such as Central Park, Carnegie Hall, Radio City Music Hall, and the Museum of Modern Art.
“We are thrilled to announce the addition of the Blakely under the Wyndham brand family,” said Brian Ferdinand, Chairman and CEO of LuxUrban Hotels. “This property is now operating on the Wyndham platform that provides best-in-class services and support across marketing, distribution, sales, sourcing and technology.”
Mr. Ferdinand noted that the Blakely is also now part of Wyndham Rewards®, recently named the number one hotel rewards program by editors of U.S News & World Report. Hotels within the Wyndham portfolio benefit from access to a rapidly growing membership base of more than 100 million enrolled members, who today account for nearly one out of every two U.S. check-ins. This access drives potential guests to LuxUrban properties and results in significantly lower commission rates than LuxUrban had paid historically.
LuxUrban has also received capital from Wyndham via key money that the Company will deploy at the Blakely to help elevate the customer experience, enhance the asset value, and drive RevPAR as well growth and working capital back into the business.
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.
