Prominent Miami resort files for Chapter 11 bankruptcy

In a market driven by strong traveler numbers but also considerable competition, hotels without the resources of a large chain often find themselves in a financial situation that forces them to file for bankruptcy protection.The abrupt collapse of the company behind hotels such as The Tuscany and Hotel 27 in New York City left guests from different parts of the world stranded at the end of September 2025. A month later in November, short-term rental platform Sonder filed for Chapter 7 liquidation after Marriott pulled out of a licensing agreement.Luxury properties such as the Fairmont Breakers hotel in Long Beach, the Fairmont Château Montebello in Québec, and the two companies behind the new Mandarin Oriental in Boca Raton all filed for bankruptcy before the end of 2025. The first major hotel chain to file for bankruptcy in 2026 is the Revo Hospitality Group — the German chain was founded in 2008 and has approximately 260 hotels in 146 cities that are expected to remain operational during the court proceedings.Amid looming foreclosure judgment, Bloom Hotels files for Chapter 11 protectionThe latest hotel to file for Chapter 11 bankruptcy in the Southern District of Florida is Miami-based Bloom Hotels, according to RK Consultants on X (formerly Twitter). The beleaguered company behind The Sixty Sixty Resort in Miami Beach was hit by a $23.67 million foreclosure judgment against investment company De Paz Family Investment LLC over unpaid mortgage payments, fees, and interest in December 2025, The Real Deal reported.Related: Classic hotel may skip Chapter 11 bankruptcy, go to liquidationBloom Hotels had been hoping to once again refinance, but a bankruptcy judge ruled that the company had exhausted its options to get back on track, and the 82-room property, built in 1992, has been closed since the start of the year as it prepares for liquidation.According to the bankruptcy filing, Bloom has between $10 and $50 million in assets and an equivalent amount in liabilities to fewer than 50 creditors. The filing also states that the company had "various municipal code violations" related to the property.

The Sixty Sixty Resort is located at 6060 Indian Creek Drive in Miami Beach.Shutterstock-Bill Perry What happens next for Bloom Hotels and The Sixty Sixty Resort"The company operates as a limited liability company and is seeking to restructure its financial obligations under the bankruptcy code," the filing reads.With international travel from the Canadian and Mexican markets dropping steeply under the Trump administration, multiple properties struggled with similar problems around rising costs but a room occupancy rate that remained unchanged or declined.More Travel News:Major airline launches surprising flight between Las Vegas and ParisUnited Airlines CEO gives stark warning on Olympic GamesThe highest rooftop in Barcelona is in a surprising placeUS government issues sudden warning on Switzerland travelMultiple hotels in Miami face a heavy debt load amid a slow recovery and rising operational costs following the Covid pandemic. In downtown Miami, the Holiday Inn Port of Miami is also headed to the bankruptcy auction block, after a bankruptcy-approved listing of the 82-story property to alleviate heavy losses to creditors, South Florida Business Journal reported.What was once the historic Raleigh Hotel is also in financial trouble, CoStar reported, after attempts to sell some of the newly converted condos stalled, despite a $1 billion renovation project.

Developer Michael Shvo stepped down from leading the plans after New York-based investment firm Nahla Capital bought the development in October 2025, according to The Real Deal.Related: Mexico just crushed the US when it comes to luxury hotels