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 Lafayette Hotel, a 60-unit historic boutique property located in New Orleans, LA, via a 15-year Master Lease Agreement (“MLA”).
The Lafayette Hotel is CHG’s first property in New Orleans, joining the Company’s portfolio properties in New York, Washington, DC, Miami, Denver, Boston, and Seattle. CHG will manage and market the Lafayette Hotel to business and vacation travelers under its LuxUrbanTMbrand, with operations expected to commence in October 2022. The addition of the Lafayette brings to 10 the total number of hotels in CHG’s portfolio and the 60 units added under this MLA increases CHG’s total units under long-term lease to 1037.
The Lafayette Hotel is located on the fashionable St. Charles Avenue Streetcar Line, within the heart of the Historical Arts and Warehouse Districts in the Central Business District. The hotel is a short stroll from the French Quarter, Bourbon Street, the Ernest N. Morial Convention Center, the Superdome, the New Orleans Riverwalk, and the National World War II Museum. Desi Vega’s Steakhouse is also located inside of the Lafayette Hotel on St. Charles Avenue, offering patrons opportunity to wine and dine in downtown style.
“An important long-term component of our post-IPO scaling strategy is entering new, destination markets that attract business and vacation travelers, and New Orleans certainly fits that bill,” said Brian Ferdinand, Chairman and Chief Executive Officer of CorpHousing Group. “New Orleans is a city that has something for everyone, including more than 1,200 restaurants, a rich multi-ethnic history, over 130 festivals each year, and a world class airport. We are very excited to offer this new property later this year.”
New Orleans is known for its round-the-clock nightlife, live-music scene, and distinct cuisine that reflects the intersection of its French, African and American cultures. The city earned numerous awards and rankings during 2022, including: a #2 ranking on the Top 10 U.S. Cities list (Travel + Leisure); a #7 ranking on the Top 50 U.S. Destinations list (Conference Direct Meeting Mentor Magazine); a #3 ranking as a destination in the U.S. for City Lovers (Tripadvisor’s Travelers’ Choice); and a #2 ranking as the happiest travel destination in North America (Club Med).
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.
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