Failure to Satisfy Listing Rule Form 8 K

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On August 20, 2024, LuxUrban Hotels Inc. (the "Company") received a written notice (the "Notice") from the staff of the listing qualifications department (the "Staff") of the Nasdaq Stock Market LLC ("Nasdaq") indicating that the Company was not in compliance with Listing Rule 5250(c)(1) of Nasdaq's continued listing standards because the Company did not timely file its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 (the "Quarterly Report", such noncompliance with Listing Rule 5250(c)(1) the "Filing Delinquency"). The Notice stated that under Nasdaq rules, the Company has 60 calendar days (or until Monday, October 21, 2024) to submit a plan to regain compliance. If Nasdaq accepts the Company's plan, Nasdaq can grant an exception of up to 180 calendar days from the Quarterly Report's original due date, which 180 day period would end on February 18, 2025, to regain compliance. The Company can regain compliance with Nasdaq's continued listing standards at any time before such dates by filing the Quarterly Report with the SEC and any other subsequent reports that are required to be filed during the cure period.

On August 23, 2024, the Company received a determination letter (the "Letter") from of the Staff, indicating that in light of the Company's bid price deficiency under to Nasdaq Listing Rule 5550(a)(2), as previously disclosed by the Company in the Current Report on Form 8-K filed with the SEC on June 17, 2024, and the Staff's determination that, as of August 22, 2024, the Company's common stock had a closing bid price of $0.10 or less for ten consecutive trading days and therefore the Company is subject to the provisions contemplated under Listing Rule 5810(c)(3)(A)(iii) (the "Low Priced Stocks Rule"), the Staff has determined to delist the Company's securities from The Nasdaq Capital Market (the "Determination"), and that the Company may appeal the Determination to a Nasdaq hearings panel ("Hearing Panel") pursuant to the procedures set forth in the Nasdaq Listing Rule 5800 Series.

The Letter further noted that, in light of the Determination, the Filing Delinquency now becomes an additional basis for delisting pursuant to Listing Rule 5810(d)(2), and, as such, the Company should address this concern before a Hearings Panel if it appeals the Staff's determination, rather than proceeding as stated in the Notice.

The Letter stated that unless the Company requests an appeal of the Determination by August 30, 2024, trading of the Company's common stock and preferred stock will be suspended at the opening of business on September 4, 2024, and a Form 25-NSE will be filed with the SEC, which will remove the Company's securities from listing and registration on Nasdaq.

The Company intends to appeal the determination described in the Letter by August 30, 2024. The Letter states that hearings are typically scheduled to occur approximately 30-45 days after the date of the hearing request, and a hearing request will stay the suspension of the Company's securities and the filing of the Form 25-NSE. The Company will be asked to provide the Hearings Panel with a plan to regain compliance, which plan the Company is in the process of preparing.

The Letter has no immediate effect on the listing of the Company's securities on Nasdaq. There can be no assurance, however, that the Company will be successful in its appeal to the Hearings Panel or be able to regain compliance with the listing standards discussed above.