LUXH LuxUrban Hotels Inc

LuxUrban Hotels Inc. (OTC: LUXH) (the “Company” or “LuxUrban”), recently transitioned from the Nasdaq to the OTC market as part of a deliberate strategy to enhance operational efficiency, reduce costs, and focus on key business priorities. This move is aligned with the company’s ongoing pivot to acquiring hotel assets and achieving sustainable profitability.

1. Reduced Expenses for Strategic Flexibility

The transition to the OTC market has significantly lowered administrative and compliance costs associated with maintaining a Nasdaq listing. These cost savings have allowed LuxUrban to reallocate resources toward operational execution and high-value initiatives, including expanding its portfolio of owned hotel assets. By right sizing the business, the company is creating a more efficient structure to support long-term growth.

2. Enhanced Focus on Business Execution

The move to OTC provides LuxUrban with the flexibility to concentrate on executing its core business strategy. With fewer regulatory and financial burdens, the company is better positioned to streamline operations, optimize existing properties, and drive innovation in hospitality. This strategic realignment underscores LuxUrban’s commitment to delivering superior guest experiences and operational excellence.

3. Pivot to Acquiring Hotel Assets

As part of its growth strategy, LuxUrban has shifted its focus to acquiring high-value hotel assets that align with its vision. By owning and managing these assets, the company aims to improve profit margins, increase cash flow, and strengthen its market position. The pivot to ownership allows LuxUrban to build equity in its properties while maintaining control over operational standards and guest satisfaction.

4. Achieving Positive Cash Flow and Path to Profitability

LuxUrban is proud to announce that it achieved operational cash flow positivity in December 2024—a significant milestone on its path to profitability. This achievement reflects the company’s disciplined approach to financial management and its ability to adapt to market conditions. LuxUrban remains on track to reach full profitability in 2025, supported by the cost-saving benefits of the OTC market and its strategic asset acquisition plan.

Looking Ahead

While the transition to the OTC market is a shift from its previous Nasdaq listing, LuxUrban views this as a strategic step toward unlocking its full potential. The company plans to focus on strengthening its balance sheet, improving operational efficiencies, and preparing for a potential uplisting to a major exchange in the future.

“Our move to the OTC market reflects our commitment to creating a leaner, more efficient organization while maintaining our focus on delivering value to guests and shareholders alike,” said LuxUrban Hotels. “With a clear vision and the support of our investors, we are confident in our ability to achieve profitability in 2025 and continue building a strong foundation for future growth.”

LuxUrban Hotels, Inc. is transitioning its strategic focus from securing long-term operating rights through Master Lease Agreements (MLAs) to acquiring and managing hotel properties outright. By purchasing hotel assets, LuxUrban seeks to enhance its control over operations and capitalize on ownership-driven value creation. The Company aims to build a robust portfolio of properties in destination cities by leveraging opportunities created by dislocations in commercial real estate markets and the significant volume of debt maturities coming due, often with limited refinancing options for owners acquiring assets at a cyclical low.

Forward-Looking StatementsThis press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). The statements contained in this release that are not purely historical are forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Generally, the words “anticipates,” “believes,” “continues,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this release may include, for example, statements its ability to improve its working capital and cash flow profiles, enhance its balance sheet and deliver organic revenue growth, scheduled property openings, expected closing of noted lease transactions, the Company’s ability to continue 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. The forward-looking statements contained in this release are based on current expectations and belief concerning future developments and their potential effect on the Company. These forward-looking statements are subject to a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results of performance to be materially different from those expressed or implied by these forward-looking statements, including those set forth under the caption “Risk Factors” in our public filings with the SEC, including in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on April 15, 2024, and any updates to those factors as set forth in subsequent Quarterly Reports on Form 10-Q or other public filings with the SEC, the base prospectus comprising part of the Registration Statement and when filed, the prospectus supplement filed with respect thereto. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. 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.

For more information, contact:

Investor Relations:Jeff Ramson, PCG Advisory Email: Jramson@pcgadvisory.com

Corporate: Brandon Elster, President Email: brandon@luxurbanhotels.com