LuxUrban Signs Master Lease Agreements for Two Midtown Hotels
By Mark Hallum December 1, 2023 3:49 pm
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LuxUrban Hotels is taking over two Manhattan lodgings after signing 25-year master leases with the property owners.
LuxUrban will take over operations of the Royalton Hotel at 44 West 44th Street with 168 rooms and the Truss Hotel at 515 Ninth Avenue with 86 rooms, according to LuxUrban, which did not disclose any equivalent to asking rent or the names of brokers in the deal.
The Royalton is owned by MCR Hotels, a company with $5 billion in hospitality assets under management, while LuxUrban did not disclose the ownership of the Truss, which is obscured in New York City’s property records.
“These [new] hotels add density to our primary market of New York City and increase our portfolio of properties that will be integrated into the LuxUrban operating platform,” Brian Ferdinand, chairman of LuxUrban Hotels, said in a statement. “We are continuing to manage a robust opportunity pipeline and expect to consummate several additional MLAs in the near term.”
MCR, which owns properties such as the TWA Hotel at John F. Kennedy International Airport, The High Line Hotel at 180 10th Avenue and The Sheraton New York Times Square at 811 Seventh Avenue, did not respond to a request for comment.
Highgate and Rockpoint Group purchased the Royalton from FelCor Lodging Trust for $55 million in 2017, but didn’t hold onto it for long, selling it for $40.8 million to MCR at a $15 million loss in September 2020.
Mark Hallum can be reached at mhallum@commercialobserver.com.
