LUXH....11:00 NR ; )Everything I told you pre-market ....LoL
LuxUrban Hotels Strategically Transitions to OTC Market to Accelerate Growth and Profitability
2025-01-16 11:07 ET - News Release
- Significant Cost Savings Drive Strategic Investments: Transition to OTC reduces compliance costs, freeing capital to expand hotel asset ownership and fuel growth.
- Sharpened Focus on Core Business Execution: Streamlined operations enable LuxUrban to optimize properties and enhance guest experiences.
- Asset Acquisition Strategy to Boost Profitability: Targeted hotel acquisitions aim to strengthen market presence and improve profit margins.
- Achieves Positive Operational Cash Flow: December 2024 marks a milestone as LuxUrban reaches cash flow positivity, advancing its path to full profitability in 2025.
- Positioned for Future Uplisting: Strategic realignment sets the foundation for operational efficiency and potential return to a major exchange.
MIAMI, Jan. 16, 2025 (GLOBE NEWSWIRE) -- LuxUrban Hotels Inc. (OTC: LUXH) (the “Company” or “LuxUrban”), recently transitioned from the Nasdaq to the OTC market as part of a deliberate strategy to enhance operational efficiency, reduce costs, and focus on key business priorities. This move is aligned with the company’s ongoing pivot to acquiring hotel assets and achieving sustainable profitability.
1. Reduced Expenses for Strategic Flexibility
The transition to the OTC market has significantly lowered administrative and compliance costs associated with maintaining a Nasdaq listing. These cost savings have allowed LuxUrban to reallocate resources toward operational execution and high-value initiatives, including expanding its portfolio of owned hotel assets. By right sizing the business, the company is creating a more efficient structure to support long-term growth.
2. Enhanced Focus on Business Execution
The move to OTC provides LuxUrban with the flexibility to concentrate on executing its core business strategy. With fewer regulatory and financial burdens, the company is better positioned to streamline operations, optimize existing properties, and drive innovation in hospitality. This strategic realignment underscores LuxUrban’s commitment to delivering superior guest experiences and operational excellence.
3. Pivot to Acquiring Hotel Assets
As part of its growth strategy, LuxUrban has shifted its focus to acquiring high-value hotel assets that align with its vision. By owning and managing these assets, the company aims to improve profit margins, increase cash flow, and strengthen its market position. The pivot to ownership allows LuxUrban to build equity in its properties while maintaining control over operational standards and guest satisfaction.
4. Achieving Positive Cash Flow and Path to Profitability
LuxUrban is proud to announce that it achieved operational cash flow positivity in December 2024—a significant milestone on its path to profitability. This achievement reflects the company’s disciplined approach to financial management and its ability to adapt to market conditions. LuxUrban remains on track to reach full profitability in 2025, supported by the cost-saving benefits of the OTC market and its strategic asset acquisition plan.
Looking Ahead
While the transition to the OTC market is a shift from its previous Nasdaq listing, LuxUrban views this as a strategic step toward unlocking its full potential. The company plans to focus on strengthening its balance sheet, improving operational efficiencies, and preparing for a potential uplisting to a major exchange in the future.
“Our move to the OTC market reflects our commitment to creating a leaner, more efficient organization while maintaining our focus on delivering value to guests and shareholders alike,” said LuxUrban Hotels. “With a clear vision and the support of our investors, we are confident in our ability to achieve profitability in 2025 and continue building a strong foundation for f