Company behind two city hotels files for Chapter 11 bankruptcy

As the rising costs of operations proceed to compression currency travel adjacent with beardown visitant numbers, a fig of tiny and mid-size edifice and short-term rental level operators person filed for bankruptcy successful the past six months.

In September 2025, the institution down hotels specified arsenic The Tuscany and Hotel 27 abruptly unopen down, leaving galore guests, who had travel to New York City from each implicit the world, without accommodation. The shutdown followed short-term rental level Sonder filing for Chapter 7 liquidation, after Marriott pulled retired of what was expected to beryllium a multi-decade licensing agreement.

German edifice concatenation Revo Hospitality Group blamed rising operational costs connected it entering voluntary insolvency in January 2026, and 2 Miami formation resorts filed for Chapter 11 bankruptcy in the Southern District of Florida wrong a fewer weeks of each different successful precocious February and aboriginal March.

The latest spot to record for Chapter 11 bankruptcy successful District of Delaware bankruptcy tribunal portion is Chicago-based BY Hotel Spe-3.

Owned by mother-daughter duo Su-Mei Yen and Cassie Yen, the genitor institution besides operating nether the sanction SB Yen Management Group is down 2 hotels successful downtown Chicago: a Hilton astatine 1101 South Wabash Avenue and a Best Western astatine 1100 South Michigan Avenue.

Related: Mexico conscionable crushed the US erstwhile it comes to luxury hotels

The filing lists betwixt $100 cardinal and $500 cardinal successful estimated assets and the aforesaid magnitude successful liabilities, including $146.7 cardinal successful owe debts.

The genitor institution owes wealth to dozens of creditors, including lenders, nutrient suppliers, cleaning services, and operation vendors. Collections volition beryllium paused arsenic the lawsuit works its mode done bankruptcy court.

"The Debtors property the filing to acute liquidity constraints stemming from the COVID-19 pandemic during the properties' archetypal ramp-up period, compounded by an unsustainable indebtedness burden," according to Bondoro.

"[...] Following aboriginal pandemic-related distress, the Debtors entered into a forbearance statement that mandated assertive terms, including complaint and dispersed increases pushing involvement supra 8%, further fees, and partial paydown requirements."

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