LuxUrban Hotels Announces Pricing of Public Offering of Securities

MIAMI, July 11, 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 (MLAs) under which it manages the hotel and leases, on a short-term basis, rooms to business and leisure travelers, today announced the pricing of its previously announced public offering of 30,000,000 shares of its common stock at a price of $0.17 per share. The underwriters have also been granted an over-allotment option for up to an additional 4,500,000 shares of common stock.

Alexander Capital, LP is acting as sole book-running manager for the offering. The offering is expected to close on or about July 15, 2024, subject to the satisfaction of customary closing conditions.

The gross proceeds of the offering, before deduction of underwriting fees and other issuance expenses payable by the Company, are expected to be $5,100,000, or $5,865,000 if the over-allotment option is exercised in full. The Company intends to use the proceeds of the offering for working capital and other general corporate purposes.

All of the common shares were offered by the Company pursuant to a shelf registration statement on Form S-3 (No. 333-278883) (the “Registration Statement”) filed with the Securities and Exchange Commission (“SEC”) and declared effective on May 8, 2024 and which is available on the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such state or jurisdiction.

A preliminary prospectus supplement has been filed and a final prospectus supplement will be filed with the SEC and, when available, copies of the preliminary and final prospectus supplements and the accompanying base prospectus may be obtained from Alexander Capital, LP, 10 Drs James Parker Boulevard #202, Red Bank, New Jersey 07701 Attention: Equity Capital Markets, Phone: (212) 687-5650, Email: [email protected] or by accessing the SEC’s website, www.sec.gov.

LuxUrban Hotels Inc.
LuxUrban Hotels Inc. obtains long-term operating rights to entire hotels through Master Lease Agreements (MLAs) and leases hotel rooms to business and leisure travelers on a short-term basis. 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 number of debt obligations on these assets that are maturing due to the lack of options available to owners of these assets. LuxUrban’s MLA allows owners to retain their assets and maintain their equity while LuxUrban operates and holds the cash flows of the operating business during the term of the MLA.

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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). 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, all statements that refer to projections, forecasts or other characterizations of future events or circumstances, including underlying assumptions, are forward-looking statements. Generally, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “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 contained in this press release may include, for example, statements regarding the Company’s ability to successfully exit its properties from its former franchise partner and operate independently, its ability to improve its working capital and cash flow profiles, improve its balance sheet and generate organic revenue growth, anticipated property openings, the anticipated closing of the noted leasing transactions, the Company’s ability to continue to enter into additional leases for properties in the Company’s pipeline, and the Company’s anticipated ability to effectively and profitably market the properties it leases and will lease in the future. The forward-looking statements contained in this press release are based on current expectations and beliefs regarding future developments and their potential impact on the Company. There can be no assurance that future developments will be those 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 performance results to differ materially from those expressed or implied by such 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 such factors as set forth in subsequent quarterly reports on Form 10-Q or other public filings with the SEC, the base prospectus forming part of the registration statement and, when filed, the prospectus supplement filed therewith. 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 undertakes no obligation to update any forward-looking information and/or forward-looking statements contained or referenced herein, except in accordance with applicable securities laws.

Contact
Devin Sullivan
General manager
Equity Group Inc.
[email protected]

Conor Rodriguez, analyst
[email protected]