LuxUrban Hotels, a Miami-based hospitality company, is making a big move to turn things around after a rough year. Despite losing nearly $69 million in the first half of 2024, CEO Rob Arigo says he’s optimistic about the future. During a recent earnings call on September 25, he shared that the company has decided to exit the Florida hotel market and instead focus on nine hotel properties in New York City. This change is part of their “Lux 2.0” plan to cut down on expenses and boost profits.
Why the change? According to Arigo, the Florida hotels just weren’t big or profitable enough to make a difference. Most of them had fewer than 75 rooms, so they didn’t quite fit the company’s vision for growth. By shifting focus to New York, where they now manage nine properties with 1,205 rooms, LuxUrban hopes to see better results.
Arigo mentioned that they’re shaking things up internally, too. LuxUrban has a brand-new board of directors, a refreshed management team, and they’re actively recruiting fresh talent to help steer the company in a new direction. “Everyone at LuxUrban is excited about the future,” he said, emphasizing that the ownership groups they’re partnering with are on board with the Lux 2.0 strategy.