The Fontainebleau Miami is one of the most recognizable hotels on the beach, but with recognition comes a whole lot of financial woes as the hotel tries to maintain its status as one of the best hotels around.
After an astounding $650 million renovation, the Fontainebleau Miami held a celebrity-studded gala reopening party one year ago, on November 15, 2008. The hotel hosted the Victoria Secret Fashion Show and contractors who worked on the hotels renovations are now coming forward and saying that they were ordered to work double- or triple-time to get the luxury hotel ready for the show. They are now accusing the Fontainebleau of owing them more than $60 million for their work.
The Fontainebleau Miami may be facing bankruptcy and a senior executive at the hotel even admitted that the $600 million construction loan that they must pay back is still weighing heavily on their finances. I would think a $600 million would put some pressure on anyone’s finances to be honest.
It’s likely that sooner rather than later the public will hear what about what is going to happen to the loved South Beach hotel. In the meantime, developers and those who own stakes in the Fontainebleau, including an investment arm of the Dubai government, will most likely look into what their options are with regards to the latest financial woes. No one is expecting these latest accusations of owed payments to be the last. Stay tuned.
Via: The Real Deal