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While the bankruptcies of several regional airlines have dominated the news cycle this autumn, the hospitality industry has also been rocked by market instability. The company behind hotels such as the Tuscany and Hotel 27 in New York City suddenly filed for bankruptcy and shut down operations in September 2025. A month earlier in August, the owner of the iconic Oheka Castle hotel in Long Island similarly filed for Chapter 11 protection with debts of over $60 million. And at the start of November, vacation rental company Sonder announced a Chapter 7 bankruptcy filing after Marriott pulled back on a licensing deal. Amid a looming liquidation, travelers who in some cases booked Sonder properties months ahead were told to vacate their accommodations within less than 12 hours. Breakers hotel brand has a long history steeped in Hollywood glamour In a case that went largely unnoticed for a month before it was caught by a local market watchdog, the owner of the iconic Breakers hotel in Long Beach similarly filed for Chapter 11 bankruptcy in October. Built in 1926 but under the Fairmont Hotels and Chains brand since 2022, the Breakers hotel was built by local Long Beach banker Fred B. Dunn as an oceanfront resort for Hollywood stars, in a brand expansion of the original Breakers Palm Beach property first built in 1896. The sprawling property inspired by the Spanish Revival architectural style has been a well-known Long Beach landmark for generations. In the last few years, however, the hotel has faced significant financial challenges — on Oct. 2, owner and former Molina Healthcare executive John Molina filed for Chapter 11 bankruptcy for owner Breakers Mezz I amid debt of over $50 million. Fairmont guests “can expect to continue to access services without disruption” The hotel has faced different periods of popularity and decline over the decades. In 2017, Molina and five business partners purchased the 185-room hotel through a majority stake in 2024. They struck a deal to operate it under the Canadian Fairmont luxury hotel brand in 2022 and initiated a $100 million renovation project that quickly started bleeding money amid extensive setbacks and delays. Likely filed to stall any attempts by creditors to seize assets, the bankruptcy comes after lender X-Caliber published a notice of intent to auction off Breakers Mezz I’s shares in the company to recuperate some of its losses over unpaid debts. More on travel: 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 For the time being, Breakers is saying that any guests and employees working at the property will not be affected by the bankruptcy, as operations are expected to continue uninterrupted. “Fairmont Breakers Hotel guests and employees can expect to continue to access and to provide hospitality services, respectively, without disruption during the process,” Breakers Mezz I said in a statement. “This step taken by Breakers Mezz I, is essentially a financial and banking matter that allows the company to use the process to evaluate reorganization options, including the restructuring of its debt with its lenders.”
