A short-term rental company is zeroing in on New York City’s hotel market, signing two leases in the span of a week.
Miami-based CorpHousing Group announced a 15-year master lease operation agreement for The Tuscany Hotel in Murray Hill. The property at 120 East 39th Street is currently a St. Giles Signature Hotel.
CorpHousing plans to begin operating the property’s 124 units in the fourth quarter under its LuxUrban brand, geared towards vacationers and business travelers. The company uses a long-term lease, asset-light strategy to manage properties in major metropolitan cities, particularly hotels hindered by the pandemic.
It’s been a big week in the Big Apple for CorpHousing.
Earlier this week, the company announced a similar 15-year master lease with a 217-unit hotel in downtown Manhattan, although the exact property was not disclosed. The Blakely Hotel and the Marriott Herald Square Hotel are also in the company’s portfolio.
With the latest lease, CorpHousing counts nine hotels in its portfolio and nearly 1,000 units.
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The company has additional holdings in Florida, Los Angeles and beyond. It went public in the spring, according to the South Florida Business Journal, raising approximately $15.6 million in an initial public offering. Executives planned to reach 2,500 to 3,000 units under management by the end of the year, giving the company a ways to go before 2022’s close.
Competition in the short-term rental market is growing fierce across the country as companies try to adapt to a more flexible living mentality.
Birmingham, Alabama-based Landing scored $125 million in Series C funding. Under the company’s model, members are able to move without restrictions to furnished units within the network and only need to provide two weeks notice.
Adam Neumann’s latest venture, Flow, is also dabbling in the space. Set to launch next year, the company landed a $350 million investment from venture capital firm Andreessen Horowitz for a slew of properties offering furnished residences and flexible leases.