23.09.2025 08:20
The hotel chain LuxUrban, which was established in 2017 and operated with over a thousand rooms in New York, Miami, New Orleans, and Los Angeles, has filed for bankruptcy. Some guests with reservations found a "Closed" sign at the door when they arrived at the hotels.
The US-based hotel chain LuxUrban filed for bankruptcy protection on Sunday, September 14, in the Southern District of New York. However, customers with reservations at some of the company's hotels were met with "we are closed" signs at the doors upon arrival.
UNABLE TO WITHSTAND COST PRESSURES
Founded in 2017 and operating with over a thousand rooms in New York, Miami, New Orleans, and Los Angeles, the chain could not withstand cost pressures despite the increased travel demand following the pandemic. Rising operating and labor costs have triggered a new wave of bankruptcies, particularly in the luxury and mid-range segments.
RESERVATIONS OPEN, HOTELS CLOSED
LuxUrban stated in the documents submitted to the court that it plans to continue its operations as a debtor. However, the situation on the ground is different. Guests arriving at facilities like The Tuscany (Midtown Manhattan) and Hotel 27 (Chelsea) faced closure warnings at the door. Nevertheless, as of the morning of September 19, it was observed that the reservation systems of hotels like The Tuscany were still open.
A SHORT RESIGNATION MESSAGE WAS SENT TO STAFF
Not only guests but also employees were affected by the uncertainty. Cleaning staff noticed that managers had disappeared when they reported for duty. It was reported that some staff members received only a brief "resignation" message. While some LuxUrban hotels are still operating, others have been completely closed or sold.