CorpHousing Group Inc. Announces 15-Year Master Lease Agreement for The Tuscany Hotel in New York City
September 23, 2022 at 08:30 AM EDT
Luxury Property to be Powered by CHG’s LuxUrban™ Brand
CorpHousing Group Inc. (“CorpHousing,” “CHG”, or the “Company”) (Nasdaq: CHG), 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, today announced it has acquired long-term rights to The Tuscany Hotel in New York City via a 15-year Master Lease Agreement (“MLA”).
The addition of The Tuscany brings to nine the total number of hotels in CHG’s portfolio and the 124 units added under this MLA increases CHG’s total units under long-term lease to 977. CorpHousing plans to start operating The Tuscany during Q4 2022 and will market the property under its LuxUrbanTM brand.
The Tuscany's 124 rooms offer spacious accommodations, including hardwood entryways in all rooms, corner studios with an abundance of natural light, and multiple suites with signature views of the Chrysler Building and Empire State Building. The plush decor creates warmth and invokes classic New York paired with modern amenities, including complimentary Wi-Fi and rainforest showerheads in glass-enclosed showers. The Tuscany also boasts an in-house 24-hour fitness center that features state-of-the-art exercise equipment.
Brian Ferdinand, Chairman and Chief Executive Officer of CorpHousing Group, stated, “The Tuscany has earned a reputation as a New York luxury destination, and we are proud and excited to add this property to our growing portfolio.
“We are currently managing a robust pipeline that includes thousands of high-quality hotel units located in our current markets and new destination cities and remain focused on executing our post-IPO scaling strategy. For property owners, our approach provides the opportunity to generate stable cash flow streams to maximize returns on their properties, which have been significantly impacted by restrictions on travel and leisure activities due to the COVID-19 pandemic. For CHG, by leveraging technology to increase occupancy rates and operational efficiency our asset-light model supports predictable revenue streams and expanding operating margins that can improve over time as efficiencies are realized.”
CorpHousing Group Inc.
CorpHousing Group (CHG) 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. The Company’s future growth focuses primarily on seeking to create “win-win” opportunities for owners of dislocated hotels, including those impacted by COVID-19 travel restrictions, while providing CHG favorable operating margins. CHG operates these properties in a cost-effective manner by leveraging technology to identify, acquire, manage, and market them globally to business and vacation travelers through dozens of third-party sales and distribution channels, and the Company’s own online portal. Guests at the Company’s properties are provided Heroic Service™ under CHG’s consumer brands, including LuxUrban. CHG’s Heroic ServiceTM provides guests a hassle-free experience which exceeds their expectations with “Heroes” who respond to any issue in a timely, thoughtful, and thorough manner.
Forward Looking Statements
This press release contains forward-looking statements, including with respect to the expected closing of noted lease transactions and continued 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. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those set forth under the caption “Risk Factors” in the prospectus forming part of the Company’s effective Registration Statement on Form S-1 (File No. 333-262114). Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, leasing terms, high-level occupancy rates, and sales and growth plans. The financial projection provided herein are based on certain assumptions and existing and anticipated market, travel and public health conditions, all of which may change. 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.