Dive Brief:
- LuxUrban Hotels named Robert Agiro CEO, succeeding Shanoop Kothari, the company announced Tuesday. Agiro joined the company as chief operating officer in March.
- LuxUrban — which operates hotels and short-term rentals in properties it has taken out long-term leases on — was subject to multiple lawsuits this year. In a bid to reassure investors, the company has appointed several new leaders in recent weeks, as well as a special committee dedicated to increasing shareholder value.
- In a statement, Agiro acknowledged that LuxUrban has “much work to do,” but said he remains “convinced that we operate a unique business model that holds great promise.”
Dive Insight:
Agiro’s appointment follows the naming of a new CFO, Michael James, and a member of the board of directors, Alexander Lombardo, last week.
Agiro, who has more than 35 years of hospitality experience, joined LuxUrban from New York-based hospitality management company M&R Hotel Management, where he was vice president. He previously held leadership positions at Hersha Hospitality Management, Widewaters Hotels, Highgate Hotels, Crestline Hotels and Marriott International.
In a statement, LuxUrban Chairman of the Board Elan Blutinger said Agiro’s appointment “is consistent with the Board’s commitment to add and strengthen industry representation and experience in key leadership roles.”
“He has a track record of success in operations and asset management for large-scale turnaround initiatives, and possesses management experience at the franchise, independent and third-party levels,” Blutinger added. “We are confident that Rob is the right person to assume the role of CEO at this critical time in the Company’s evolution.”
In March, LuxUrban paid a $1.2 million fine to New York City in a settlement over illegal short-term rental charges, according to Gothamist. The company has faced several other issues this year, including an $83 million lawsuit from Apple Hospitality REIT, a high-profile short-seller report betting stock in the company would tumble and a $65 million loss in the first quarter.
Agrio’s previous responsibilities as chief operating officer will be “absorbed throughout the organization,” according to LuxUrban, which will assess filling the role at a later date.
Kothari, who served as CFO, president and co-CEO in his two years at LuxUrban, did not share where he is headed next. Blutinger said the company wishes him “the very best in his future endeavors.”
