Iconic Mandarin Oriental owner files for Chapter 11 bankruptcy

A number of resorts, hotels and mixed hotel-apartment complexes have all had to file for bankruptcy in the last months of 2025.

The company behind hotels such as The Tuscany and Hotel 27 in New York City suddenly shut down operations in September 2025 while the owner of Oheka Castle hotel in Long Island is currently in Chapter 11 proceedings with debts of over $60 million.

Vacation rental company Sonder announced a Chapter 7 bankruptcy filing in November after Marriott pulled back on a key licensing deal while the owner of the Fairmont Breakers hotel in California's Long Beach also filed for bankruptcy in the same month to stall creditors attempting to seize assets amid over $50 million in debt.

Mandarin Oriental Boca Raton owner files for Chapter 11 bankruptcy

Founded in 1963 out of Hong Kong, the Asian hospitality group Mandarin Oriental is often associated with extreme luxury and is presently made up of 45 hotels and 12 residences around the world. Plans to construct a new 164-room Mandarin Oriental in Boca Raton have first been announced in 2015 by Florida developer Via Mizner Owner II.

Construction began in 2019 but since then, the project has hit multiple delays and lawsuits over those who put down deposits in the 95 private homes and condos that were also included in the development plans.

Related: Luxury homebuilder files for Chapter 11 bankruptcy

The unfinished towers on Federal Highway and Camino Real have been a sight in the city's downtown for the last six years. The development company offered little commentary on what caused the yearslong delays but local reporters dug up a failed partnership and scared-off lenders.

With the project continuing to stall, Via Mizner Owner II and its debtor affiliate have now filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Florida on Dec. 23. The filing shows that the development group owed approximately $130.2 million to TIG Romspen US Master Mortgage LP and $80 Via Mizner Funding, L.P. while possessing between $50 million and $100 million in assets.

These other luxury hotels have hit funds-related construction delays

In the filing, Via Mizner Owner II says that it intends to use bankruptcy protection to restructure its secured debt and continue the project while protecting the value of the property. Other creditors include various design and construction contractors providing materials for the project as well as the local Nicholas Architects firm.

More Travel News:

• Major airline launches surprising flight between Las Vegas and Paris
• United Airlines CEO gives stark warning on Olympic Games
• The highest rooftop in Barcelona is in a surprising place
• US government issues sudden warning on Switzerland travel

A similar situation played out in Arizona when development company Five Star Development Properties filed for Chapter 11 bankruptcy to continue building the 215-room Ritz-Carlton resort in Paradise Valley first announced in 2007.

Developers blamed the stalling of the project first on the economic recession of 2008 and later on the Covid pandemic and primary lender Madison Realty Capital eventually sought foreclosure amid continued setbacks and rising debts.

Both the New York-based hedge fund and Five Star owner Jerry Ayoub accused the other side of loan mismanagement and bad-faith negotiating tactics while the judge issued a temporary injunction on foreclosure for the details of where the project went wrong to be worked out in court.

Related: This country makes non-citizens pay for their hotel stays in cash