LuxUrban Hotels Inc. (“LuxUrban” or the “Company”) (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 that its Board of Directors has formed a Special Committee comprised of independent directors to explore potential strategic initiatives focused on maximizing shareholder value.

The Special Committee is charged with evaluating potential strategic transactions, including, without limitation, equity and debt financings, a sale of the Company or some or all of its assets, a merger, strategic acquisitions, or other strategic initiatives and alternatives. No timetable to complete this process has been established. The Company is not currently engaged in any potential strategic transaction, and has not engaged professional advisors in connection with any such transaction or the formation or operation of the committee, at this time. Leonard Toboroff will serve as Chairman of the Special Committee.

The Company does not intend to disclose any developments with respect to the Special Committee’s activities unless and until the Company determines that further disclosure is appropriate or required by law or regulation. There can be no assurances that this process will result in the Company pursuing a transaction or completing any such transaction.

“We believe that we operate one of the most innovative models in the hospitality industry,” said Elan Blutinger, Chairman of the Board. “Our Board and management team are committed to maximizing shareholder value, and we believe that the commencement of this process to evaluate strategic opportunities fully aligns with that mandate. Leonard has spent the better part of his professional life as counsel and advisor to multiple companies structuring public and private strategic transactions across multiple industries.”

“The Special Committee will conduct this process in a manner that is consistent, thoughtful and in the best interests of our shareholders,” said Leonard Toboroff, Chairman of the Special Committee. “This is a unique company in the lodging industry and the creation of this committee will allow us to formalize and centralize any strategic opportunities we consider.”

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.

Forward Looking Statements

This 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 related to the decision by the Company to explore and evaluate potential strategic initiatives, the Company's ability to successfully complete a transaction related to this process, and whether the any such strategic initiative, if consummated, would result in enhanced stockholder value. 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. There can be no assurance that future developments will be those that have been anticipated. 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 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.

Shanoop Kothari Chief Executive Officer LuxUrban Hotels Inc. shanoop@luxurbanhotels.com

Devin Sullivan Managing Director The Equity Group Inc. dsullivan@equityny.com Conor Rodriguez, Analyst crodriguez@equityny.com

LuxUrban Hotels (NASDAQ:LUXH)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024 Haga Click aquí para más Gráficas LuxUrban Hotels.
LuxUrban Hotels (NASDAQ:LUXH)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024 Haga Click aquí para más Gráficas LuxUrban Hotels.