LuxUrban Hotels Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Regulation FD Disclosure, Financial Statements and Exhibits
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| Item 1.01 | Entry into a Material Definitive Agreement |
On April 2, 2025, LuxUrban RE Holdings LLC, a wholly owned subsidiary of LuxUrban Hotels Inc. (the “Company”), entered into a comprehensive Stipulation of Settlement (the “Stipulation of Settlement”) with Apple Eight Hospitality Ownership, Inc. (“Apple Eight”), resolving all outstanding litigation and sums claimed to be owed related to the Hotel 57 property located at 130 East 57th Street, New York, New York (“Hotel 57”).
Under the terms of the Stipulation of Settlement, we have agreed that LuxUrban RE Holdings LLC vacated the premises and turned over possession on April 4, 2025. In return, the Apple Eight has agreed to a full and mutual release of all claims, including the waiver of approximately $14 million in alleged arrears, liabilities, and union-related obligations. The Company will retain revenue from certain prepaid guest reservations for a brief transition period, subject to minimal operating expenses and all pre-booked reservations will be honored by Hotel 57 subject to certain requirement’s.
In connection with the Stipulation of Settlement, LuxUrban RE Holdings LLC has agreed to discontinue with prejudice its related action pending in the Supreme Court of the State of New York (Index No. 650961/2025) against both Highgate Hotels, L.P. as well as Apple Eight. The Company’s legal and operational teams coordinated a transition plan to ensure a smooth turnover of Hotel 57 operations with no disruption to guests or business continuity.
| Item 7.01 | Regulation FD Disclosure |
This strategic resolution:
| ● | Eliminates approximately $14 million in accrued liabilities from the Company’s balance sheet; |
| ● | Reduces approximately $5 million in annualized GAAP losses; |
| ● | Extends the Company’s operating runway; |
| ● | Reduces corporate overhead; |
| ● | Eliminates a large portion of payables; and |
| ● | Allows reallocation of resources toward higher-performing assets. |
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s financial position, strategy, future operations, expected cost savings, and ability to generate value. These forward-looking statements are based on current expectations and are subject to risks, uncertainties, and changes in circumstances that may cause actual results to differ materially from those expressed or implied.
| Item 9.01 | Financial Statements and Exhibits |
| Exhibit | Description | |
| 10.1 | Stipulation of Settlement, dated April 2, 2025 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
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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: April 7, 2025 | LUXURBAN HOTELS INC. | ||
| By: | /s/ Michael James | ||
| Name: | Michael James | ||
| Title: | Chief Financial Officer | ||
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