Prominent Miami resort files for Chapter 11 bankruptcy

Core Insights - The hotel industry is facing significant challenges due to strong competition and financial instability, leading to an increase in bankruptcy filings among smaller hotels and chains [1] Group 1: Bankruptcy Filings - The company behind hotels like The Tuscany and Hotel 27 in New York City collapsed in September 2025, leaving guests stranded [2] - Luxury properties, including the Fairmont Breakers and Fairmont Château Montebello, filed for bankruptcy before the end of 2025, with Revo Hospitality Group being the first major chain to file in 2026 [3] - Bloom Hotels filed for Chapter 11 bankruptcy in Florida amid a foreclosure judgment, indicating ongoing financial distress in the sector [4] Group 2: Financial Details - The Sixty Sixty Resort in Miami Beach faced a $23.67 million foreclosure judgment due to unpaid mortgage payments and related fees [5] - Bloom Hotels reported assets and liabilities between $10 million and $50 million, with fewer than 50 creditors involved [7] - The company has been closed since the start of the year as it prepares for liquidation, having exhausted options for refinancing [6] Group 3: Market Conditions - The hotel industry is experiencing rising costs and stagnant or declining room occupancy rates, particularly affected by international travel drops from Canadian and Mexican markets [8]