A Broward County beachfront hotel is heading to a foreclosure auction after its ownership group defaulted on a $26 million loan, adding another chapter to a growing wave of hospitality distress across South Florida.

What is happening to the Hillsboro Beach Resort?

The Hillsboro Beach Resort is now subject to a foreclosure sale after lenders moved to recover a $26 million outstanding debt, following a default by the ownership group of the property, which previously operated under the Sonder brand.

  • Resort sits in Hillsboro Beach, a small, upscale barrier-island community in Broward County between Pompano Beach and Deerfield Beach.
  • Location is on a narrow strip of land between the Atlantic Ocean and the Intracoastal Waterway.
  • Despite the foreclosure proceedings, the resort remains open and is still accepting guests.

Is this foreclosure part of a larger trend in South Florida hospitality?

The Hillsboro Beach Resort foreclosure is part of a broader pattern of hotel assets financed during the low-interest-rate era now struggling to service debt against a backdrop of higher borrowing costs and uneven post-pandemic performance.

  • Just across the county line in Miami Beach, the Goodtime Hotel was scheduled for its own foreclosure auction on July 1.
  • The clustering of these events suggests pandemic-era financing structures and shifting travel economics are continuing to catch up with some segments of the regional hospitality market.
  • Real estate observers have been tracking this pattern across Miami-Dade and Broward counties.

Why does the hotel remain open during foreclosure proceedings?

Courts and lenders generally prefer to preserve the going-concern value of a property rather than shutter it ahead of a sale, which is why the Hillsboro Beach Resort's operational continuity is typical in foreclosure proceedings of this kind.

What role did Sonder play with this property?

Sonder, the tech-forward hospitality company that once managed the property, has itself navigated significant financial turbulence in recent years, retreating from numerous markets as part of broader restructuring efforts.

  • It is unclear from available information what role, if any, the former operator plays in the current proceedings.

Original reporting on the Hillsboro Beach Resort foreclosure was first published by The Real Deal Miami.