LuxUrban Hotels Inc. Files for Chapter 11 Reorganization to Reemerge as a Private Company

LuxUrban Hotels Inc. Files for Chapter 11 Reorganization to Reemerge as a Private Company

NEW YORK (September 15, 2025) – Jacobs P.C., lead restructuring counsel to LuxUrban Hotels Inc. (OTC: LUXH, formerly Nasdaq: LUXH), today announced that the company has voluntarily filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The court-supervised process is intended to reduce debt, stabilize operations, and strategically reposition LuxUrban as a privately held hospitality company with a stronger balance sheet. All LuxUrban hotels will remain open and operating during the reorganization.

As part of the restructuring, Jacobs PC advised LuxUrban in commencing Chapter 11 proceedings, a proactive measure designed to reorganize the company’s obligations while ensuring day-to-day operations continue without disruption. With the support of its senior secured lenders and a majority of creditors, LuxUrban is moving forward under a consensual framework that is expected to streamline the process and provide a clear path forward.

A key component of the plan includes converting certain debt into equity, which will allow LuxUrban to reemerge as a privately held company positioned for long-term growth without the. constraints and costs of the public markets. This transition is expected to reduce corporate overhead and eliminate the ongoing compliance burdens associated with public company status, enabling the company to reinvest resources into operations and stakeholder value.

“Over the last year, LuxUrban has navigated complex challenges due to rapid growth, ” said Mike James, Chief Financial Officer of LuxUrban Hotels Inc. “Working closely with Jacobs PC, we recognized that Chapter 11 was the most effective tool to reset our financial foundation. With the backing of our lenders and creditors, we are confident LuxUrban will emerge as a stronger, more agile private company.“

In addition, Jacobs PC will obtain court approval of first-day motions that allow LuxUrban to maintain full operations, keep hotels open, compensate employees without interruption, and ensure vendors continue to be paid on schedule. These measures are intended to protect the company’s operational strengths while it works toward a stronger balance sheet and a more sustainable future.

“LuxUrban’s decision to reorganize is a critical turning point,” said Leo Jacobs, Founder of Jacobs P.C.“ By combining LuxUrban’s operational strengths with a capital structure aligned for stability, this process will allow the company to shed legacy burdens and unlock future potential.”

About Jacobs P.C.

Jacobs P.C. is a boutique corporate bankruptcy and commercial litigation law firm with over 100 years of combined experience. Dedicated to advocating for businesses facing complex challenges, Jacobs P.C. provides innovative solutions to overcome even the toughest legal and business obstacles. From the outset, the firm’s practical, results-oriented approach focuses on delivering immediate relief from legal pressures while building strategic, long-term pathways for clients to regain control and achieve their ideal outcomes. Jacobs P.C. leverages negotiation, mediation, settlement, advocacy, and motion practice to establish clear advantages for clients, helping them navigate and resolve disputes effectively. For more information, visit www.jacobspc.com

About LuxUrban

LuxUrban Hotels Inc. is a hospitality company that manages and acquires hotel properties through long-term Master Lease Agreements (MLAs) and strategic asset ownership. Focused on high-demand urban markets, LuxUrban delivers unique value to property owners and outstanding guest experiences.

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