Shares in LuxUrban Hotels lost roughly 30% of their value on Wednesday after the Miami-based hospitality company posted a $41M quarterly loss and disclosed that it wouldn’t file its annual report on time as it undergoes an internal audit.
The company disclosed the update in a press release Tuesday evening before the company’s scheduled earnings call Wednesday morning, which was abruptly canceled.
The Royalton hotel in Midtown Manhattan is one of the properties that LuxUrban claimed it had signed a lease for in its public disclosures, but a deal hadn’t been completed. LuxUrban is conducting an internal audit ahead of filing its year-end earnings.
The disclosures came after a short seller report and an investigation by Bisnow revealed that the company had potentially misrepresented the status of at least two hotel leases on previous financial…
