Luxurban Hotels Inc. has entered a significant settlement agreement with 123 Washington LLC, resolving litigation concerning its leasehold interest in a New York hotel property. As part of the agreement, Luxurban will make a settlement payment of approximately $3.4 million, payable in installments through November 2026. This settlement, which includes the use of $2.625 million in previously restricted cash deposits, satisfies a prior judgment exceeding $12 million. The agreement also addresses $2.57 million in accrued obligations to the New York Hotel Trades Council and Hotel Association of NYC Benefit Funds, with payments to be forwarded by the landlord. The lease for the 123 Washington Street property is terminated, with possession to be surrendered by June 6, 2025. This resolution eliminates about $7.5 million in additional liabilities and marks a significant step in improving Luxurban's financial standing.