One-of-a-kind hotel forced into involuntary bankruptcy

While the hotel industry is going through a period of overall growth, a number of properties around the world still ended up in bankruptcy in 2025.

The company that owned hotels like Tuscany and Hotel 27 in New York City suddenly shut down operations in September 2025 while the château-style Oheka Castle hotel in Long Island filed for Chapter 11 protection with debts of over $60 million a few months earlier in April.

At the end of October, the longstanding Breakers hotel in Long Beach similarly also ended up in bankruptcy after owner and former Molina Healthcare executive John Molina ran up debts of over $50 million on a renovation project that quickly started going over time and budget. While built in 1926, the iconic California property has been under the Canadian Fairmont luxury hotel brand in 2022.

Château Montebello: a grand hotel with a storied Canadian history

This week, a second Fairmont property saw its fate sealed after a judge in the Canadian province of Québec ruled for accounting firm PwC to take over the sale of the 21-hectare log resort. In 2024, a separate judge in Hong Kong ordered Chinese owner China Evergrande Group to liquidate Château Montebello amid more than $300 billion in liabilities on hundreds of different properties around the world.

At one point the largest real estate company in China, Evergrande is now often called "the most indebted company in the world" amid a slow collapse that saw it default on multiple loans and get delisted from the Hong Kong stock exchange last April.

Related: Iconic Fairmont hotel owner files for Chapter 11 bankruptcy

Built in the 1930s alongside the Ottawa River, Château Montebello was initially operated by the Canadian Pacific Railway as both a railway hotel and national landmark. It was constructed out of over 10,000 red cedar logs to mimic the style of a traditional log cabin and was over the decades expanded to a resort sitting on a game reserve of over 65,000 acres or  263 square kilometers.

The property is often marketed as "the largest log cabin in the world" and a chance to experience luxury in the wilderness (it is approximately an hour away from the Canadian capital of Ottawa by car). The property has 211 rooms and suites and is a four-star with rooms averaging for $230 CDN ($163 USD) per night.

Hotel described as "true Canadian experience," operations not to be affected

"For 95 years, Fairmont Le Château Montebello has been known for its rustic charm, unique architecture and beautiful natural surroundings," the resort writes on its website. "Described as the true Canadian experience, the world’s largest log cabin is a welcoming resort destination with more than 40 unique activities and experiences available on-site at our luxury hotel."

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As first reported by Canadian national broadcaster CBC, Fairmont is on a multi-decade contract to operate the Château Montebello regardless of owner and so does not expect operations to be affected by the sale.

PwC is now tasked with finding a buyer who can afford to take on a historic property with both unique marketing opportunities and high restoration and maintenance costs. Evergrande could not be reached for comment on the sale or earlier bankruptcy.

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