Los Angeles Influence Expands Investigation into Wyndham’s Role in LuxUrban Losses

Los Angeles, CA, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Los Angeles Influence reports that a Los Angeles–based securities litigation firm has issued a  statement announcing expanded legal action and investigation on behalf of shareholders of LuxUrban Hotels, Inc. The investigation focuses on alleged false or misleading statements and omissions made by Wyndham Hotels & Resorts, Inc. related to its now-collapsed franchise partnership with LuxUrban.

Core Allegations

• Public Statements and Market Impact: Wyndham publicly promoted its partnership with LuxUrban, touting “best-in-class” support, advance development funding, and an anticipated surge in direct bookings through Wyndham channels. These claims, the firm asserts, were relied upon by LuxUrban and the market.

• The Royalton Letter of Credit: Evidence suggests a qualified financial institution had committed to fund a required Letter of Credit (LOC) for LuxUrban’s Royalton Hotel lease, but that the LOC was never released—derailing the deal after LuxUrban had already disclosed it publicly.

• Investor Losses: Following upbeat joint statements, LuxUrban’s stock price climbed. When the Royalton transaction collapsed and prior statements were withdrawn, the stock declined sharply, allegedly reflecting investor reliance on earlier misrepresentations.

Why It Matters

The firm’s preliminary findings indicate Wyndham’s public assurances and private commitments were material to LuxUrban’s operational and investor decisions. The failure to deliver on those commitments—particularly the Royalton LOC—allegedly rendered LuxUrban’s market statements inaccurate, contributing directly to investor losses when the true circumstances emerged

Timeline Highlights

August 2023: Wyndham and LuxUrban announce franchise partnership, emphasizing Wyndham’s global platform and financing strength. Late 2023: LuxUrban expands its portfolio and communicates expectations of majority direct bookings through Wyndham systems. January–February 2024: After short-seller scrutiny, LuxUrban retracts earlier Royalton statements; the stock drops following news of the unreleased LOC. May–June 2024: Franchise relationship winds down, adding further strain on LuxUrban’s operations and share value.

What Investors Should Know

Investors who purchased or held LuxUrban securities between August 3, 2023 and June 30, 2024 and experienced losses are encouraged to contact the firm for more information about their rights and potential legal options.