Luxurban Hotels Inc. Reaches $3.4 Million Settlement Agreement, Resolves Litigation Over 123 Washington Street Property Lease

Luxurban Hotels Inc. has entered a significant settlement agreement with 123 Washington LLC, resolving litigation concerning its leasehold interest in a New York hotel property. As part of the agreement, Luxurban will make a settlement payment of approximately $3.4 million, payable in installments through November 2026. This settlement, which includes the use of $2.625 million in previously restricted cash deposits, satisfies a prior judgment exceeding $12 million. The agreement also addresses $2.57 million in accrued obligations to the New York Hotel Trades Council and Hotel Association of NYC Benefit Funds, with payments to be forwarded by the landlord. The lease for the 123 Washington Street property is terminated, with possession to be surrendered by June 6, 2025. This resolution eliminates about $7.5 million in additional liabilities and marks a significant step in improving Luxurban's financial standing.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Luxurban Hotels Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001829126-25-004446), on June 12, 2025, and is solely responsible for the information contained therein.