LuxUrban Hotels Inc. (Nasdaq: LUXH), a company known for securing long-term operating rights for entire hotels through Master Lease Agreements (MLA), has announced a strategic partnership with HotelRez, a London-based company, to enhance Global Distribution Systems (GDS) connectivity. This partnership will link LuxUrban with four major GDS, extending its reach to over 500,000 agencies worldwide.
Expanding Global Reach
Rob Arigo, CEO of LuxUrban, expressed enthusiasm about the new partnership, stating, “This new relationship increases our distribution while diversifying our booking channels. We expect this partnership to drive sales beginning in late Q3 and Q4 of 2024. Our hotels serve a global client base and this partnership gives us the reach required to increase sales in those markets.”
The collaboration with HotelRez marks a significant step for LuxUrban in broadening its global footprint. By tapping into HotelRez’s extensive network, LuxUrban aims to streamline its booking processes and improve its market presence, ultimately driving higher sales volumes.
LuxUrban’s Strategic Growth
LuxUrban Hotels Inc. secures long-term operating rights for entire hotels through MLAs and rents out hotel rooms on a short-term basis to both business and vacation travelers. The company is strategically building a portfolio of hotel properties in key destination cities by leveraging the current dislocation in commercial real estate markets and the significant debt maturity obligations these assets face. LuxUrban’s MLA allows property owners to retain their assets and equity value while LuxUrban operates and profits from the hotel business for the duration of the lease.
Future Outlook
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations, hopes, beliefs, and intentions regarding future events and strategies. Words like “anticipates,” “believes,” “expects,” “intends,” “may,” and similar expressions often identify these forward-looking statements.
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LuxUrban’s forward-looking statements highlight the company’s ability to reduce costs, operate its hotel portfolio efficiently, evolve its business model, and execute its strategies successfully. The company believes these actions will yield significant benefits and improve its operational performance. However, these statements are subject to various risks and uncertainties, some beyond the company’s control, that could cause actual results to differ materially from those anticipated.
Risk Factors
Potential risks include the company’s ability to continue closing on additional leases, efficiently commercialize leased properties, and navigate potential claims and litigations arising from the termination of commercial relationships. LuxUrban is committed to implementing changes that result in cost savings, improved margins, and enhanced operational performance. The forward-looking information provided in this press release is based on current expectations and beliefs and is subject to change.
Final Thoughts
The partnership between LuxUrban Hotels and HotelRez is set to significantly enhance LuxUrban’s distribution capabilities and market reach. As the company continues to expand its portfolio and streamline operations, this strategic collaboration is expected to drive increased sales and reinforce LuxUrban’s position in the global hospitality market.
Source: Yahoo Finance
