LuxUrban Hotels (LUXH) Launch LUX 2.0

LuxUrban Hotels Inc. (Nasdaq: LUXH) today announced a significant milestone. This new formula for hotel owners provides stability for their real estate assets in the current unique economic environment.

2025 represents a significant opportunity for LuxUrban to continue growing RevPAR. By abandoning the lower rated advanced purchase strategies and adopting market-based pricing strategies, LuxUrban can close the ADR (Average Daily Rate) gap to the competitive set representing potential growth.

The company completed a series of transformational changes to usher in the next stage of growth and evolution – a project named Lux 2.0. This project creates an operational framework focused on evolving a unique lodging and hospitality model into a sustainable profitable platform business.

In June, we introduced revenue optimization and enhancement initiatives at each of our properties that are delivering measurable increases in ADRs. We have reduced annual operating expenses, attracted top-tier industry talent to the organization, and commenced the roll-out of a system-wide service and re-branding initiative.

We re-defined LuxUrban as a provider of long-term Master Lease Agreements that offer an attractive alternative to the current industry standard by eliminating high third-party management fees, aggressive franchise costs, and the redundant consulting fees that have burdened hotel owners for years.

Robert Arigo, CEO of LuxUrban Hotels Inc., stated, “We are pleased with the significant progress our new team has made in a relatively short time. Our platform is truly transformative for the hotel industry. Our room rates will increase significantly as we raise rates to be in line with the current prices in the markets we serve. The new management team has leveraged their industry contacts to build a significant pipeline of opportunities for LuxUrbans future portfolio growth. Our timing for this revamped launch of the platform aligns perfectly with the needs of our customers in this financially challenging environment.”

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