Bloom Hotels 6060 LLC, the owner of Miami Beach’s Sixty Sixty Resort, has thrown up a Chapter 11 roadblock in front of a looming foreclosure, buying crucial time for the long-troubled property on the Indian Creek waterway. The 16-story building has been dark since the start of 2026 as the owner struggled with rising debt, leaving neighbors and creditors wondering whether the tower will get a second act, change hands, or be sold off in pieces.
The company filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Southern District of Florida on Feb. 16, and the case is listed as 26-11867-RAM, according to Inforuptcy. Initial paperwork shows Bloom Hotels 6060 reported between $10 million and $50 million in both assets and liabilities, with fewer than 50 creditors. The court has set a meeting of creditors for March 17 and an April 27 deadline for proofs of claim. The petition lists a Coconut Grove business address for the debtor and names Kristopher Pearson as lead counsel.
The timing was no coincidence. The bankruptcy hit the docket one day before a Feb. 17 foreclosure auction that had been scheduled to satisfy a roughly $23.7 million judgment obtained by De Paz Family Investment LLC, as reported by The Real Deal. De Paz sued in 2023 over an alleged default on a $21 million loan and won final judgment in December 2025, court filings show. A recent attempt by Bloom to cancel the sale was rejected in state court, setting up the last-minute federal filing.
The Sixty Sixty, completed in 1992 and converted to a condo-hotel in the mid-2000s, has been shuttered since the start of the year. The bankruptcy petition cites “various municipal code violations” at the site, according to TheStreet. The outlet also notes that Bloom had been trying to refinance in order to dodge foreclosure but ultimately ended up in bankruptcy court when those refinancing options dried up. The struggle fits a broader pattern for smaller, nonchain hotels that have been squeezed by higher costs and heavy debt.
What Chapter 11 Does Here
Chapter 11 triggers an automatic stay that pauses most collection efforts and foreclosure actions while a company seeks to reorganize or sell assets, according to U.S. Courts. Early filings show the judge has authorized Bloom to continue operating as a debtor in possession and to open post-petition bank accounts, Inforuptcy reports. That breathing room can allow the owner to hunt for new financing or pursue an orderly sale, although secured lenders can still ask the court to lift the stay if they can show cause.
Property History And Creditors
Bloom’s initial schedules list several notable unsecured creditors, including GNCR Holdings at about $2 million and Miami law firm Garcia-Menocal, Irias & Pastori at roughly $1.16 million, along with a roster of construction and vendor claims, according to The Real Deal. The Sixty Sixty was consolidated under single ownership in a 2022 deal that valued the building at about $23.5 million and came with renovation plans, REBusinessOnline reported. Those plans, along with subsequent forbearance agreements with the lender, ultimately did not prevent the foreclosure push.
Local Ripple Effects
Analysts say the Sixty Sixty saga highlights the pressure on smaller Miami hotel operators that are juggling high labor and operating costs with short-term, often expensive loans, an industry stress point noted in early 2026 coverage of hotel distress by AInvest. For nearby residents and unit owners, the immediate worries are unpaid maintenance, mounting code fines, and who foots the bill for repairs while the building sits idle. If the case is converted to a liquidation, the property could be sold under court supervision instead of through a rapid-fire auction, a process that can sometimes preserve more value for both creditors and owners.
What to watch next: a meeting of creditors is scheduled for March 17 and proofs of claim are due April 27, according to Bankruptcy Observer. Potential buyers, lenders, and residents will be watching closely to see whether Bloom reaches a deal with De Paz, lines up new financing, or steers the Sixty Sixty toward an orderly, court-approved sale.
