LuxUrban Hotels Inc. (Nasdaq: LUXH) (or “the Company”), which utilizes an asset-light business model to lease entire hotels on a long-term basis and rent out hotel rooms in these properties in key major metropolitan cities, announced today that on June 19, 2023 it entered into an agreement (“the Agreement”) with Greenle Partners LLC Series Alpha P.S. (“Greenle Alpha”) and Greenle Partners LLC Series Beta P.S. (“Greenle Beta” and, together with Greenle Alpha, “Greenle”), the holders of its’ senior secured convertible notes (“Convertible Notes”), that eliminates the approximately $2.6 million of remaining debt owed by the Company to Greenle associated with financing agreements entered into prior to the Company’s initial public offering.

Inclusive of this Agreement, during 2023 the Company has retired all of its approximately $9.8 million of senior secured debt with Greenle.

Under the terms of the Agreement, Greenle will convert the final $2.6 million of Convertible Notes it owns into 1.3 million shares of Common Stock of the Company and, in exchange, the Company will register the previously issued and last remaining warrants owned by Greenle Alpha and Greenle Beta to purchase 1,000,000 shares of the Company’s Common Stock and 250,000 shares of the Company’s Common Stock, respectively, and reduce the exercise price of such warrants to $2.50 per share of Common Stock. Pursuant to the Agreement, the Company agreed to register the re-sales of common stock underlying such warrants.

“The Agreement eliminates all senior debt obligations and brings to an end the issuance and registration of shares associated with the elimination of our pre-IPO debt,” said Brian Ferdinand, Chairman and Chief Executive Officer. “We believe that the actions we have taken over the last several months to eliminate our pre-IPO debt are in the best long-term interest of our shareholders by removing a drag on our financial results, increasing our access to growth capital, and providing financial flexibility. With this matter now behind us, we are committed to maintaining a capital structure that will limit dilution while supporting our anticipated growth.”

LuxUrban Hotels Inc.

LuxUrban Hotels Inc. utilizes an asset light business model to lease entire hotels on a long-term basis and rent out hotel rooms in the properties it leases to business and vacation travelers through the company’s online portal and third-party sales and distribution channels. The company currently manages a portfolio of hotel rooms in New York, Washington D.C., Miami Beach, New Orleans and Los Angeles. As of March 31, 2023, the company has 1,034 hotel rooms available for rent and seeks to rapidly build its portfolio on favorable economics through the acquisition of additional accommodations that were dislocated or are underutilized as a result of the pandemic and current economic conditions. In late 2021, the company commenced the process of winding down its legacy business of leasing and re-leasing multifamily residential units, as it pivoted toward its new strategy of leasing hotels. This transition has been substantially completed.

Forward Looking Statements

This press release contains forward-looking statements, including with respect to the anticipated success of the transactions contemplated by this press release, and the ability of the Company to commercialize efficiently and profitably the properties it leases and will lease in the future. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those set forth under the caption “Risk Factors” in our public filings with the SEC, including in Item 1A of our 10-K for the year ended December 31, 2022. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, leasing terms, high-level occupancy rates, and sales and growth plans. The financial projections provided herein are based on certain assumptions and existing and anticipated market, travel and public health conditions, all of which may change. 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.

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