LuxUrban Hotels Inc. (or the “Company”) (Nasdaq: LUXH), 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 the pricing of an underwritten public offering of an initial 280,000 shares of its 13.00% Series A Cumulative Redeemable Preferred Stock (the “Series A Preferred Stock”) with a liquidation preference of $25.00 per share, resulting in gross proceeds of $7 million. In connection with the offering, the Company has granted the underwriter a 45-day option to purchase up to an additional 42,000 shares of Series A Preferred Stock to cover over-allotments, if any. The Company expects to use the net proceeds of this offering for near-term acquisitions and general working capital purposes.

The Company reserves the right to re-open the Series A Preferred Stock at any time, and expects to opportunistically utilize this right in the future to execute on its opportunity pipeline.

Utilizing a shelf registration process described below, the Company may, from time to time at prices and on terms to be determined at or prior to the time of the offering, sell up to $50 million in aggregate principal amount of its preferred stock in one or more offerings; approximately $42 million in aggregate principal amount of preferred stock is potentially available to the Company following the closing of this offering.

The offering is expected to close on or about October 26, 2023, subject to the satisfaction of customary closing conditions.

The Series A Preferred Stock has been approved for listing on the Nasdaq Capital Market subject to official notice of issuance under the trading symbol "LUXHP." The Company expects the Series A Preferred Stock to begin trading on the Nasdaq Capital Market or about October 27, 2023.

Alexander Capital, L.P. is the sole underwriter of the offering.

The securities were offered pursuant to a registration statement on Form S-3 (No. 333-274308) filed by the Company with the Securities and Exchange Commission (“SEC”) and declared effective by the SEC on September 13, 2023, along with a supplement to the prospectus. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website. A copy of the final prospectus supplement and accompanying prospectus related to the offering, when available, may be obtained from Alexander Capital L.P., 17 State Street, New York, NY 10004, Attention: Equity Capital Markets, or by calling (212) 687-5650 or emailing info@alexandercapitallp.com, or by logging on to the SEC’s website at www.sec.gov.

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

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 the date of this release, the company has approximately 1,625 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 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). The statements contained in this release that are not purely historical are forward-looking statements. Forward-looking statements include, but are not limited to, the expected closing date of the offering, the expected use of the net proceeds of the offering, and the ability of the Company to list the securities of the Series A Preferred Stock on the Nasdaq. 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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