CorpHousing Group takes over a hotel in Tuscany

120 East 39th Street (Hotels, Getty)

A short-term rental company focuses on the New York hotel market, signing two leases in the space of a week.

Miami-based CorpHousing Group announced a 15-year master lease operating agreement for The Tuscany hotel in Murray Hill. The property located at 120 East 39th Street is currently a St. Giles Signature Hotel.

CorpHousing plans to begin operating the property’s 124 units in the fourth quarter under its LuxUrban brand, aimed at vacationers and business travelers. The company uses a long-term rental and asset-light strategy to manage properties in major metropolitan cities, especially hotels hampered by the pandemic.

It’s been a big week in the Big Apple for CorpHousing.

Earlier this week, the company announced a similar 15-year head lease with a 217-unit hotel in midtown Manhattan, though exact ownership was not disclosed. The Blakely Hotel and the Marriott Herald Square Hotel are also part of the company’s portfolio.

With the latest lease, CorpHousing has nine hotels in its portfolio and nearly 1,000 units.

The company has additional holdings in Florida, Los Angeles and beyond. It went public in the spring, according to the South Florida Business Journal, raising about $15.6 million in an initial public offering. Executives expected to reach 2,500 to 3,000 units under management by the end of the year, giving the company some way to go before the 2022 close.

Competition in the short-term rental market is increasingly fierce across the country as businesses try to adapt to a more flexible lifestyle mentality.

Landing, based in Birmingham, Alabama, secured $125 million in Series C funding. Under the company’s model, members can move without restrictions to furnished units within the network and only have to provide two weeks notice.

Adam Neumann’s latest venture, Flow, is also getting into space. Slated to launch next year, the company has landed a $350 million investment from venture capital firm Andreessen Horowitz for a slew of properties offering serviced residences and flexible leases.

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