In November 2023, LuxUrban made public its 25-year Master Lease Agreement with the Royalton Hotel, a prestigious four-star establishment situated at 44 West 44th Street, New York, New York.

Yet, on January 17, 2024, Bleecker Street Research unveiled a report asserting that LuxUrban had not indeed concluded the lease agreement with the Royalton Hotel. The report claimed confirmation from the building’s owner that LuxUrban never executed a lease agreement or provided a Letter of Credit. Furthermore, it asserted that LuxUrban faced multiple lawsuits accusing it of rent non-payment, with four recent cases within six months, none of which the company disclosed.

Following this revelation, LuxUrban’s stock experienced a decline of $1.01 per share, marking a 20.61% decrease over the next two trading sessions, closing at $3.89 per share on January 18, 2024.

Subsequently, on February 2, 2024, LuxUrban announced the discontinuation of discussions regarding the addition of the Royalton Hotel to its property portfolio. It also retracted previous statements concerning the Royalton, including its listing in prior quarterly reports. This update caused LuxUrban’s stock to drop by $0.99 per share, amounting to a 22.05% decrease, with shares closing at $3.50 on February 5, 2024.

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