LuxUrban Hotels Inc., which utilizes a long-term lease, asset-light business model to acquire and manage a portfolio of short-term rental properties in major metropolitan cities, has entered into a strategic partnership with Rebel Hotel Company, a full-service, technology-focused hospitality management company.
Under the terms of the agreement, Rebel will assume a variety of operational responsibilities associated with LuxUrban’s current and future New York City portfolio of hotel units marketed under the LuxUrban brand. LuxUrban Hotels expects to benefit from Rebel’s expertise in managing day-to-day hotel operations, scale-driven operating efficiencies, project and cost management, access to an experienced industry talent pool, B2B sales initiatives, custom branding at the property level, preferred pricing on third-party OTAs, supplies and other meaningful cost reductions across the organization.
“Rebel Hotel Company is best-in-class and brings a proven record of success in applying its data-driven management solutions to help streamline operational efficiencies, elevate client service and accelerate operating deliverables,” said Brian Ferdinand, chairman/CEO, LuxUrban Hotels Inc. “As an emerging industry leader in lifestyle, boutique and luxury select-service hotels, this agreement with Rebel Hotel Company is an important component of our growth strategy, and will allow us to focus on rapidly, responsibly and cost-effectively scaling our hotel portfolio with the benefit of predictable costs. Specifically, this collaboration delivers margin enhancements that, in our estimation, the company would not have been able to realize until at least 2024. Rebel Hotel Company reflects our guest-centric values, and we look forward to working together.”
Brian Sparacino, president/CEO, Rebel Hotel Company, added, “LuxUrban Hotels is transforming the hotel landscape in major metropolitan cities across the U.S. providing distinct synergies with Rebel Hotel Company’s progressive new paradigm for hotel management, and we welcome the opportunity to form this strategic partnership. The company’s unique asset-light operating model relies on long-term master lease agreements as opposed to traditional equity/debt-driven acquisitions. This approach allows LuxUrban Hotels to operate large hospitality assets at significantly lower cost structures and with increased margins during a time when hospitality assets are carrying large, distressed debt loads, both from rising interest rates and the lingering effects of COVID-19 travel restrictions and lockdowns. Our unrivaled technology, expertise and fee transparency makes Rebel Hotel Company the premier partner and choice hotel management platform that is philosophically aligned with the LuxUrban Hotels operating model.”