LuxUrban Hotels leases entire hotels on long-term triple-net leases and operates them directly, renting rooms to business and leisure travelers under its own brand, co-branded with Wyndham's Trademark Collection and Travelodge. Rather than owning real estate, LuxUrban acts as a long-term tenant, targeting distressed, underutilized, or poorly managed hotels — many stressed by COVID-19 or the high interest rate environment — and leasing them at favorable rates. LuxUrban then streamlines operations and lists rooms through OTAs and the Wyndham booking platform, generating revenue from nightly room rates plus ancillary fees such as resort fees, parking, and early/late check-in. As of early 2024, LuxUrban operates 1,406 rooms across 14 properties in New York, Miami Beach, New Orleans, and Los Angeles, with New York accounting for over 1,100 rooms. The business model relies on fixed lease costs (typically 10–25 year leases with 2–3% annual escalations), creating significant operating leverage as occupancy and room rates rise above the break-even threshold. The company is asset-light by design — its primary upfront capital outlay is security deposits to landlords. LuxUrban's 2023 Wyndham franchise agreement is intended to shift bookings away from OTAs toward Wyndham's direct platform, where combined fees are roughly one-third lower, which management expects to improve EBITDA margins over time. Growth is focused on expanding the leased portfolio in high-demand urban markets, with Boston and London as near-term targets.