LuxUrban Tossed From Two More Manhattan Properties

LuxUrban Hotels is running out of places to lay its head at night.

In recent weeks, two property owners have kicked the hotel operator out of their buildings, Bisnow reported. A year after operating 18 properties in four states, the Miami-based company is down to six properties, all in New York City.

On Monday, LuxUrban disclosed the relinquishing of Hotel 57, a 210-key property at 130 East 57th Street in Midtown East. LuxUrban subleased the property from Apple Hospitality REIT. Last year, however, an affiliate of Apple Hospitality sued for LuxUrban’s removal, claiming the subtenant owed $11.7 million in rent and $2.3 million in union benefit funds.

The two sides settled the case this month. LuxUrban admitted fault and Apple Hospitality regained control of the property. LuxUrban saved $14 million in accrued liabilities and $5 million in annualized losses from the settlement, it said.

On the other side of town, LuxUrban also lost control of the 118-key Blakeley at 136 West 55th Street in Midtown West; it had been there since 2021.

Last year, Richard Born’s BD Hotels sued over alleged nonpayment of rent and claimed LuxUrban ignored a lease termination notice. A judge approved LuxUrban’s eviction in October, but it was halted after the operator agreed to pay $1.8 million in back rent.

By February, however, BD was pursuing an eviction of LuxUrban again, and the hotel stopped accepting reservations shortly thereafter. Born confirmed that LuxUrban no longer operates the property.

The ejections are the latest in a string of hardships to befall LuxUrban.

Many landlords have come after the company for alleged nonpayments of rent. A short seller report last year resulted in the ouster of co-chief executive officer Brian Ferdinand, and fellow co-CEO Shanoop Kothari was out three months later as the company’s stock tanked. Ferdinand is now back as interim CEO.

Leadership has remained a revolving door and the company was delisted from the Nasdaq Stock Exchange in mid-January. In its third-quarter filing, the company had just $199,000 in cash against $83.5 million in liabilities.

— Holden Walter-Warner