LuxUrban is accepting bookings at shuttered hotels
Despite filing for Chapter 11 bankruptcy protection, LuxUrban is still accepting bookings at their four Manhattan properties, causing potential harm to unsuspecting customers and prompting letters to the bankruptcy judge.
In a move that has left many scratching their heads and others outraged, LuxUrban, the luxury hotel brand that recently filed for Chapter 11 bankruptcy protection, is still accepting bookings at their four Manhattan properties.
The news of the continued bookings came to light after paying customers showed up at the shuttered hotels, only to be turned away. Bisnow and local news outlets reported on the issue, prompting letters to the bankruptcy judge.
Cloudbeds, an online booking platform, wrote to the judge expressing their concerns. "We have reason to believe at least one of LuxUrban's four hotels has closed, but LuxUrban has not updated the status of the property with our platform," the letter read.
The potential harm to unsuspecting customers has raised red flags for many. The Department of State also wrote to the judge, requesting an emergency hearing due to the possibility of consumer harm.
"We are concerned about the impact LuxUrban's actions may have on unsuspecting customers who may book a room at one of their shuttered properties," the letter stated.
The continued bookings by LuxUrban have also raised questions about the company's financial situation and their ability to manage their properties. The bankruptcy filing was already a sign of financial trouble, and the decision to continue accepting bookings at closed hotels has only added to the confusion surrounding the brand.
The situation has highlighted the need for better communication and transparency between hotel brands and booking platforms. It also serves as a cautionary tale for customers to do their due diligence before booking a hotel room, even with well-known luxury brands.
At the time of writing, LuxUrban has not released