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Brian Ferdinand has resigned as interim chief executive officer and as a member of the board of directors of LuxUrban Hotels Inc. (OTC:LUXH), effective immediately as of Wednesday. The leadership change comes as the company faces significant financial challenges, with InvestingPro data showing the stock has fallen over 95% in the past six months. The company disclosed the leadership change in a statement released Monday, based on a filing with the U.S. Securities and Exchange Commission.
According to the press release, Ferdinand’s resignation was not the result of any disagreement with the company regarding its operations, policies, or practices. The company stated that Ferdinand will remain involved as an investor and intends to continue supporting LuxUrban Hotels in that capacity. Analysis from InvestingPro reveals the company operates with a significant debt burden and faces challenges with cash burn, with current liquid assets falling short of short-term obligations.
LuxUrban Hotels, incorporated in Delaware and based in New York, operates in the real estate sector. The company’s common stock and 13.00% Series A Cumulative Redeemable Preferred Stock are traded on the OTC market under the symbols LUXH and LUXHP, respectively.
The announcement was signed by Chief Financial Officer Michael James. The information in this article is based on a press release statement filed with the SEC.
In other recent news, LuxUrban Hotels Inc. reported significant developments concerning its financial and operational strategies. The company announced the departure of its Chief Operating Officer, Robert Arigo, effective April 11, 2025, with a severance package of $50,000 and a repayment of a promissory note. Additionally, Interim CEO and Chairman Brian Ferdinand has decided to forgo his salary and benefits starting April 15, 2025, in an effort to reduce operational costs. In a separate development, LuxUrban Hotels resolved its litigation with Apple (NASDAQ:AAPL) Eight Hospitality Ownership, Inc. over the Hotel 57 property in New York. The settlement, finalized on April 2, 2025, involves LuxUrban vacating the premises and Apple Eight waiving approximately $14 million in claims. This agreement is expected to eliminate significant liabilities from LuxUrban’s balance sheet and reduce annualized GAAP losses by about $5 million. These strategic moves are part of LuxUrban’s efforts to improve its financial health and operational efficiency, although the company acknowledges potential risks and uncertainties in its forward-looking statements.
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