LuxUrban Hotels Appoints Patrick McNamee to Board of Directors

MIAMI, June 27, 2024 (GLOBE NEWSWIRE) — LuxUrban Hotels Inc. (Nasdaq: LUXH), a hospitality company which leases entire existing hotels on a long-term basis and rents rooms in its hotels to business and vacation travelers, today announced the appointment of Patrick McNamee as an independent member of the Company’s Board of Directors (“Board”), effective June 27, 2024. The Company also announced that Brian Ferdinand has resigned from the Board.

Mr. McNamee is a seasoned and accomplished business leader who brings more than 30 years of experience as a public company executive, investor, and board member. He will serve as Chair of LuxUrban’s Compensation Committee and as a member of the Nominating and Corporate Governance Committee.

“Patrick brings a wealth of operating, technology, and management experience across multiple industries and global operating environments,” said Elan Blutinger, Chairman of the Board. “His diverse background and accomplishments will add depth and breadth to our Board, and we look forward to benefiting from his insights.”

“I believe that LuxUrban has tremendous potential and I welcome the opportunity to join the Board at this important moment in its evolution and re-invention as a public company,” said Mr. McNamee. “Implementing cost reductions and revenue management change takes time, but I believe there is a clear path to improve execution and strengthen operations. In addition, I have a lot of respect for one of LuxUrban’s largest shareholders, Goudy Park Capital. They were one of my largest shareholders when I was CEO of Health Insurance Innovations, and they are thoughtful, constructive, long-term investors.   I look forward to working with the Board and executive team to enhance long-term shareholder value.”

About Patrick McNamee

Mr. McNamee is currently an Operating Partner at BPOC, a private equity firm. Prior to joining BPOC, he served as CEO of Health Insurance Innovations (2015-2017), a leading provider of affordable health plans, and Executive Vice President and Chief Operating Officer of Express Scripts Holding Company (2007- 2014), a pharmacy benefit manager. He has also served in senior leadership roles at Misys Healthcare Systems, various divisions of General Electric Corporation, and NBC.

Previously he served as a director, in chairman and committee chairman roles, for HD Supply Holdings, Valitas Holdings, Maxor Pharmacy Services, Skylight Health and, Health E-Commerce, Inc.

Mr. McNamee holds a bachelor’s degree in biomedical engineering and a master’s degree in electrical engineering from Marquette University.

Resignation of Brian Ferdinand from Board of Directors

As a result of Mr. Ferdinand’s resignation, the Board will remain at seven members each of whom is deemed to be independent.  Mr. Ferdinand believes that a fully independent Board will facilitate LuxUrban’s next phase of growth and development.

“The executive and Board transition we commend earlier this year has produced a re-shaping of our management and governance structure, with a heavy emphasis on industry and public company executive experience and elevating corporate governance,” said Mr. Ferdinand. “These changes are, in my view, beneficial to our shareholders and to the long-term prospects of LuxUrban.  While I am stepping down from my role as director, my belief in the model we created and the foundation we built remains steadfast.”

Mr. Blutinger commented, “Brian conceived and built one of the most innovative lodging and hospitality models in our industry. The Board and executive team remain committed to advancing the development of this model and building a company that can deliver long-term value. We thank Brian for his past contributions and welcome his continuing support.”

LuxUrban Hotels Inc.
LuxUrban Hotels Inc. secures long-term operating rights for entire hotels through Master Lease Agreements (MLA) and rents out, on a short-term basis, hotel rooms to business and vacation travelers. The Company is strategically building a portfolio of hotel properties in destination cities by capitalizing on the dislocation in commercial real estate markets and the large amount of debt maturity obligations on those assets coming due with a lack of available options for owners of those assets. LuxUrban’s MLA allows owners to hold onto their assets and retain their equity value while LuxUrban operates and owns the cash flows of the operating business for the life of the MLA.