MIAMI–(BUSINESS WIRE)–LuxUrban Hotels Inc. (Nasdaq: LUXH), a hospitality company which leases entire existing hotels on a long-term basis and rents rooms in its hotels to business and vacation travelers, today announced the appointment of Elan Blutinger as Non-Executive Chairman of the Board of Directors, effective April 22, 2024. Mr. Blutinger, who joined the board in February 2024 as part of an overall strategy to strengthen industry representation across the enterprise, succeeds Brian Ferdinand, the Company’s founder, former Chief Executive Officer, and largest shareholder. Mr. Ferdinand will remain a director. Shanoop Kothari, the Company’s co-Chief Executive Officer, becomes the sole Chief Executive Officer under the Company’s previously announced transition plan.
Mr. Ferdinand has pledged his full support of Mr. Blutinger as the ideal choice to help lead the Company through the next phase of its growth and evolution.
“Our previously announced leadership transition has resulted in a significant re-shaping of our management and governance structure,” said Mr. Ferdinand. “Elan is one of the most accomplished and respected travel and hospitality executives in our industry, and his elevation to Chairman is, in my view, the next logical step in this ongoing process.”
“Brian conceived and built one of the most innovative and important businesses in the lodging and hospitality industry in years, and I believe that the Company’s hotel operating model holds great promise for continued expansion,” said Mr. Blutinger. “I am honored for the opportunity to expand my role at this important moment in the Company’s development and focus on increasing shareholder value and enhancing governance, in the years ahead. It’s a great team and I look forward to collaborating more closely with our dedicated leadership.”
Mr. Blutinger is currently Managing Director of Alpine Consolidated, LLC, a merchant bank he co-founded in 1996 and through which he has founded, built, and led initial public offerings for multiple public technology and travel companies in the United States and United Kingdom. He has been both a founder and board member at a variety of companies, including: Great Wolf Resorts, a family entertainment resorts company, which was acquired by Apollo Global Management in 2012; ResortQuest International, a provider of full-service vacation rentals in the US, which was acquired by Wyndham Hotels & Resorts in 2010; Hotels.com, which was sold to IAC/InteractiveCorp. in 2003; and Travel Services International, which was sold to Airtours PLC in 2000.
Mr. Ferdinand concluded, “Founding and growing this company has been one of the most exciting and rewarding endeavors of my professional life. In less than two years we have grown from an idea to an industry recognized, leading operator of hotels under long-term Master Lease Agreements. Although it is never easy to step away from a company that you have built, I am convinced that the time is right. I have every confidence that Elan, our board, and leadership team will skillfully guide LuxUrban into the next phase of its growth. As a member of the board, I look forward to devoting my time to assisting the Company in its expansion initiatives, with a specific focus on property acquisitions and partnerships. As LuxUrban’s largest shareholder, I remain committed to ensuring that the Company operates in a manner that will allow us to reach our full potential and create long-term value.”
LuxUrban Hotels Inc.
LuxUrban Hotels Inc. secures long-term operating rights for entire hotels through Master Lease Agreements (MLA) and rents out, on a short-term basis, hotel rooms to business and vacation travelers. The Company is strategically building a portfolio of hotel properties in destination cities by capitalizing on the dislocation in commercial real estate markets and the large amount of debt maturity obligations on those assets coming due with a lack of available options for owners of those assets. LuxUrban’s MLA allows owners to hold onto their assets and retain their equity value while LuxUrban operates and owns the cash flows of the operating business for the life of the MLA.
