LUXHP LuxUrban Hotels Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): September 25, 2024

 

LuxUrban Hotels Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware		001-41473		82-3334945
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

2125 Biscayne Blvd, Suite 253, Miami, Florida		33137
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (877) 269-5952

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e 4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Ticker symbol(s)		Name of each exchange on which registered
Common Stock, $0.00001 par value per share		LUXH		The Nasdaq Stock Market LLC
13.00% Series A Cumulative Redeemable Preferred Stock, $0.00001 par value per share		LUXHP		The Nasdaq Stock Market LLC

 

 

 

The information in this Current Report on Form 8-K and Exhibit 99.1 is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

 

Item 2.02 Results of Operations and Financial Condition.

 

On September 25, 2024, LuxUrban Hotels Inc. (the “Company”) issued a press release (the “Call Notice Press Release”) to announce a webcast to review the results of the quarter ended June 30, 2024 on September 25th, 2024 at 5:00PM ET. On September 25, 2024 the Company issued another press release (“Earnings Press Release”) summarizing the financial results for such quarter. The full text of the Call Notice Press Release and Earnings Press Release are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and is incorporated by reference herein.

 

Item 7.01 Regulation FD Disclosure.

 

Earnings Call Script

 

On September 25, 2024, the Company hosted a webcast to discuss its financial and operating results for the quarter ended June 30, 2024. A transcript of the pre-recorded portion of the conference call is furnished as Exhibit 99.3 to this Current Report on Form 8-K. An archived webcast of the call will be available for three months after the event, at the web address provided in the Call Notice Press Release.

 

The information contained in this Current Report on Form 8-K, including Exhibit 99.1, Exhibit 99.2, and Exhibit 99.3 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section and shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

This Current Report on Form 8-K, including the exhibits hereto, 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 Exchange Act). 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 with respect to the Company’s ability to successfully de-platform its properties from its former franchise partner and operate independently, 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. 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, the Quarterly Report on Form 10-Q for the three and six months ended June 30, 2024, filed with the SEC on September 25, 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 Current Report on Form 8-K are made as of the date hereof, 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.

 

 

Item 9.01. Financial Statement and Exhibits.

 

(d) Exhibits:

 

Exhibit No.		Description
99.1		Call Notice Press Release, dated September 25, 2024.
99.2		Earnings Press Release, dated September 25, 2024.
99.3		Webcast Transcript, dated September 25, 2024.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: September 26, 2024	LUXURBAN HOTELS INC.
	By:	/s/ Robert Arigo
		Name:	Robert Arigo
		Title:	Chief Executive Officer

 

 

 

 

Exhibit 99.1

 

LuxUrban Hotels to Host Webcast to Review the Financial Results for the

Second Quarter of 2024

 

Conference Call and Webcast to be held on September 25, 2024 at 5:00 PM ET

 

MIAMI, Florida — September 25, 2024 (GLOBE NEWSWIRE) — LuxUrban Hotels Inc. (“LuxUrban” or the “Company”) (Nasdaq: LUXH), which secures long-term operating rights for entire hotels through Master Lease Agreements (MLA) under which it manages the hotel and rents out, on a short-term basis, rooms to business and vacation travelers, will host a webcast to review the results of the 2^nd quarter of 2024 on September 25^th, 2024 at 5:00PM ET.

 

The webcast will feature an overview of the quarter from Robert Arigo, CEO, and Mike James, CFO. To register for the event, please click HERE (https://event.choruscall.com/mediaframe/webcast.html?webcastid=eZXMWBMc).

 

Conference Call & Webcast Information:

●

Time & Date: September 25, 2024, at 5:00PM ET

●

PARTICIPANT DIAL IN (TOLL FREE): 1-877-317-6789

●

PARTICIPANT INTERNATIONAL DIAL IN: 1-412-317-6789

●

Webcast Link: HERE (https://event.choruscall.com/mediaframe/webcast.html?webcastid=eZXMWBMc)

 

An archived webcast of the call will be available for three months after the event.

 

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 with respect to the Company’s ability to successfully de-platform its properties from its former franchise partner and operate independently, 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. 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 base prospectus comprising part of the Registration Statement and when filed, the prospectus supplement filed with respect thereto. 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:

Robert Arigo, CEO

Email: rob@luxurbanhotels.com

 

 

 

 

Exhibit 99.2

 

LuxUrban Hotels Inc. Reports Second Quarter 2024 Financial Results

 

Miami, Florida – September 25, 2024 – LuxUrban Hotels Inc. (Nasdaq: LUXH), a hospitality company that leases entire hotels on a long-term basis, manages these hotels, and rents out rooms to guests in the properties it leases, today announced its financial results for the second quarter ended June 30, 2024 (“Q2 2024”). The Company has also submitted its quarterly report on Form 10-Q to the U.S. Securities and Exchange Commission.

 

Q2 2024 Financial Overview:

 

●

Net Rental Revenue: $18.2 million, compared to $31.9 million in Q2 2023.

 

●

Gross (Loss) Profit: $(22.2) million, compared to a profit of $10.2 million in Q2 2023, impacted by increased rent expenses, surrender of deposits from exiting properties, and other increased operational costs. We have streamlined our hotel portfolio to exclude underperforming properties and now manage 9 hotels with a total of 1,056 rooms.

 

●

Total Operating Expenses: $4.2 million, compared to $5.4 million in Q2 2023, reflecting efforts to realign cost structures.

 

●

Net Loss: $(26.8) million, compared to a net loss of $(26.8) million in Q2 2023.

 

Rob Arigo, Lux Urban Hotels CEO, commented: “In 2024, we launched a comprehensive initiative to enhance our company’s management and operations, which we refer to as LuxUrban 2.0. Our strategy was focused on the strategic elimination of non-performing hotel properties, and targeted efforts to reduce operating overhead. As part of our recent Lux 2.0 transition, we strengthened our management and operations teams through recruiting talented directors and officers with significant experience in the hospitality and financial sectors. While significant work remains as we navigate the end of 2024, and legacy operations will continue to present exposure and challenges, we are implementing transformative changes within LuxUrban that will enhance our financial stability and provide a solid foundation for future growth.”

 

 

Operational Highlights:

 

Key initiatives include revenue optimization, expense reduction, re-branding, and a focus on long-term Master Lease Agreements, eliminating traditional fees.

 

Refinement of Hotel Portfolio:

 

LuxUrban Hotels has refined its portfolio and focused its geographic operations around New York City. The company is now operating 9 properties with a total of 1,025 units available.

 

Cost Management Initiatives:

 

In Q2 2024, the Company took actions to reduce its operational expenses, including renegotiating certain lease agreements and surrendering non-core properties, resulting in non-cash charges.

 

Strengthening the Company with Industry Expertise:

 

The Company added over 100 years of relevant industry and public company experience at both executive and Board levels. This includes the appointment of Non-Executive Chairman Elan Blutinger, independent board members Kim Schaefer and Alex Lombardo, and Mike James as Chief Financial Officer. Additionally, LuxUrban has hired experienced professionals in revenue management and property operations.

 

Outlook for the 2H 2024

 

Looking ahead, LuxUrban Hotels plans to focus on optimizing revenue management, improving its cash flow profile, and enhancing its balance sheet through strategic initiatives aimed at strengthening liquidity. The Company is optimistic about growth prospects in the second half of 2024 as it moves into peak travel seasons and continues to benefit from the recovery in the hospitality sector and the modified portfolio intended to eliminate nonperforming hotels.

 

Conference Call & Webcast Information:

 

●

Time & Date: September 25, 2024, at 5:00PM ET

 

●

PARTICIPANT DIAL IN (TOLL FREE): 1-877-317-6789

 

●

PARTICIPANT INTERNATIONAL DIAL IN: 1-412-317-6789

 

●

Webcast Link: HERE

 

The simultaneous webcast will be available in the Investor Relations section of the Company’s website at www.luxurbanhotels.com.

 

For access to all applicable financial statements, please see the company’s quarterly report on 10Q at the following link: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001893311/000182912624006460/luxurbanhotels_10q.htm

 

 

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 with respect to the Company’s ability to successfully de-platform its properties from its former franchise partner and operate independently, 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. 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 base prospectus comprising part of the Registration Statement and when filed, the prospectus supplement filed with respect thereto. 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:
Robert Arigo, CEO
Email: rob@luxurbanhotels.com

 

 

Exhibit 99.3

 

LuxUrban Hotels Inc.
Second Quarter 2024 Earnings Webcast Script

 

Adam Holdsworth, Managing Director of Investor Relations

 

Good afternoon, everyone, and thank you for joining our conference call to discuss the LuxUrban second quarter 2024 financial results and corporate highlights. Leading the call today will be Robert Arigo, Chief Executive Officer, joined by Mike James, Chief Financial Officer.

 

Before we begin, I’d like to remind everyone that our remarks today may contain forward-looking statements based on the current expectations of management, which involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including the risks and uncertainties described in the company’s filings with the over-the-counter market. You are cautioned not to place any undue reliance on any forward-looking statements which speak only as of the date made and may change at any time in the future. Although we voluntarily do so from time-to-time, the company undertakes no commitment to update or revise forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

 

This call also includes references to certain financial measures that are not calculated in accordance with Generally Accepted Accounting Principles or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations section of LuxUrban’s website.

 

With that, I’m now pleased to turn the call over to Robert Arigo, CEO.

 

Robert Arigo, CEO

 

Thank you, Adam, and we appreciate everyone who joined our call today. During this call, Mike, our CFO, and I will review the highlights from the second quarter of 2024, outline our strategy for success through Lux 2.0, and discuss our recent corporate transformation, which includes the addition of a new management team composed of hospitality veterans and a refreshed board of directors.

 

We look forward to discussing the significant changes we’ve implemented, as well as providing transparency regarding our current business operations and the necessary adjustments following the previous management team.

 

LuxUrban Hotels leases entire existing hotels on a long-term basis and rents out hotel rooms within the properties we manage. In 2024, we launched a comprehensive initiative to enhance our company’s management and operations, which we refer to as LuxUrban 2.0.

 

This initiative includes the addition of experienced professionals from the hotel and finance sectors to our management team and board of directors, the strategic elimination of non-performing hotel properties, and targeted efforts to reduce operating overhead. While significant work remains as we navigate the third quarter and prepare for the fourth quarter of 2024, we believe that LuxUrban 2.0 is starting to yield the intended benefits.

 

We currently manage a portfolio of 7 hotels in Manhattan, 1 in Brooklyn, and 1 in New Orleans, all under long-term lease agreements. As of the date of this report, we have 1,056 hotel rooms available for rent across our portfolio. Over the past nine months, we have been strategically reducing our domestic operations and U.S.-based portfolio, focusing solely on properties that have the potential to generate positive cash flow.

 

 

As part of our recent Lux 2.0 transition, we are committed to enhancing our management and operations teams by recruiting talented directors and officers with significant experience in the hospitality and financial sectors. I was appointed in June 2024, bringing over [number] years of experience in the hotel industry, while Michael James joined as Chief Financial Officer in the same month, bringing extensive financial expertise.

 

We are also pleased to welcome Elan Blutinger and Kim Schaefer, veterans in hotel and travel technology, to our board of directors. Our ongoing efforts to strengthen management and operational expertise across all areas of our company include actively recruiting new personnel and reallocating existing management to areas where their skills can be most effectively utilized.

 

With my extensive experience in hotel management and successfully operating a variety of properties, I am confident in the tremendous opportunities that lie ahead for LuxUrban Hotels. Our strategic approach through Lux 2.0 positions us to generate sustainable positive cash flow moving forward.

 

This quarter presented challenges, including write-offs from the previous management team, but I believe we are at a pivotal inflection point. One significant hurdle we encountered was the decision to pre-sell 40% of our room inventory, which resulted in funds being collected at an average room rate of ($ADR Rate). However, I’m pleased to report that these advance sales will expire at the end of 2024, allowing us to enter 2025 with average room rates projected in the range of ($ADR Rate).

 

We are implementing transformative changes within LuxUrban that will enhance our financial stability and provide a solid foundation for future growth. I am excited about the potential these initiatives hold for positioning our company as a leader in the market.

 

Now, I’ll turn the call over to Mike to provide a detailed review of our financial results. Mike, please take it from here.

 

Mike James, CFO:

 

Thanks, Rob. As highlighted, the financials for the second quarter reflect write-offs and necessary accounting adjustments to properly reflect the financial position of the company. It’s important to note that the figures we’re presenting today pertain to our core properties and operations, which form the foundation of our portfolio.

 

Despite these challenges, we are focused on leveraging our existing assets and driving operational improvements to strengthen our financial outlook moving forward. I look forward to discussing the specific results in detail and sharing how our strategic initiatives are positioning us for success.

 

Net rental revenue for the three months ended June 30, 2024 was $18.2 million, as compared to $31.9 million for the three months ended June 30, 2023, a decrease of 43%. This decrease predominantly resulted from the decrease in average units available to rent from 1,625 for the three months ended June 30, 2023 to 1,056 for the three months ended June 30, 2024. This decrease in net rental revenues was exacerbated by bookings of guaranteed reservations at relatively lower rates for the three months ended June 30, 2024 as compared to the same period during the prior year. The TRevPAR, or revenue per available room, was $257 for the three months ended June 30, 2023 versus $188 for the three months ended June 30, 2024. The lower TRevPar in the current quarter is attributable to the impact from preselling of the rooms at lower rates versus the same period last year, which we are forecasting to increase after the prebooked guests have stayed at the property.

 

 

Cost of revenue increased from $21.7 million in the three months ended June 30, 2023 to $40.4 million for the three months ended June 30, 2024, an increase of 86%, primarily as a result of the Company expensing the unamortized lease acquisition costs and security deposits surrendered for the properties that were exited during the period, as well as increases in costs related to utilities, labor, cable/WIFI, credit card processing fees and commissions, and costs related to the relocation of guests from our terminated properties to alternative properties.

 

Gross Profit decreased to ($22.2) million in the three months ended June 30, 2024 from $10.2 million in the three months ended June 30, 2023, a net decrease of $32.6 million or 318%. This decrease is primarily as a result of the Company expensing the unamortized lease acquisition costs and security deposits surrendered for the properties that were exited during the period, as well as deposit surrenders and commission costs to relocate guests from our terminated properties to alternative properties.

 

Total operating expenses incurred for the three months ended June 30, 2024, decreased by approximately $1.2 million from the three months ended June 30, 2023. Of this decrease the general and administrative expenses were reduced by an offset of $600 thousand for costs related to the exit of our partnership with Wyndham.

 

Total other expense for the three months ended June 30, 2024 was $185 thousand as compared to $29.7 million for the three months ended June 30, 2023. This decrease is primarily due to lower cash interest and financing costs during the three months ended June 30, 2024 as compared with three months ended June 30, 2023 as a result of the Greenle Revenue Share Transaction.

 

As of June 30, 2024, our cash and cash equivalents balance was $61 as compared to $752,848 at December 31, 2023, and total current assets were $3,315,844 at June 30, 2024, as compared to $19,721,057 at December 31, 2023. The working capital deficit was $62.2 million as of June 30, 2024 versus a deficit of $13.4 million at December 31, 2023. We continue to explore capital raising transactions, as well as strategic initiatives to improve the company’s cash position. Through Lux 2.0 and the recent changes from the previous management team, we are optimistic that our knowledge and strong work ethic along side with our investors and bankers will change the business for the positive as we enter the fourth quarter and into 2025.

 

I will now pass the call back to Rob:

 

Robert Arigo, CEO

 

Thanks Mike:

 

I’m optimistic about the future of our company, especially in light of the significant changes we’ve made to our personnel and strategic direction. We anticipate that the fourth quarter will yield a positive impact on our overall operating results, particularly as the New York hotel market typically performs at its strongest during this period. With our focus on optimizing operations, we expect to generate revenues at higher daily room rates.

 

As we implement our strategy, we are committed to maintaining transparency with our shareholders. We will keep you informed of our progress through regular communications, including press releases and media updates. This is a transformative moment in our company’s history, and we are excited about the opportunities that lie ahead.

 

With that, I will turn it over to the operator to facilitate questions from the audience.

 

v3.24.3

Cover	Sep. 25, 2024
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 25, 2024
Entity File Number	001-41473
Entity Registrant Name	LuxUrban Hotels Inc.
Entity Central Index Key	0001893311
Entity Tax Identification Number	82-3334945
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	2125 Biscayne Blvd
Entity Address, Address Line Two	Suite 253
Entity Address, City or Town	Miami
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33137
City Area Code	(877)
Local Phone Number	269-5952
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Common Stock 0. 00001 Par Value Per Share [Member]
Title of 12(b) Security	Common Stock, $0.00001 par value per share
Trading Symbol	LUXH
Security Exchange Name	NASDAQ
Series A Cumulative Redeemable Preferred [Member]
Title of 12(b) Security	13.00% Series A Cumulative Redeemable Preferred Stock, $0.00001 par value per share
Trading Symbol	LUXHP
Security Exchange Name	NASDAQ

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