As the skyrocketing price of jet fuel has thrown airline financial pressures into the national limelight, many hotels at all ends of the price spectrum also face the snowballing effects of low consumer sentiment and rising operating costs.
In March 2026, two resorts in Miami Beach filed for Chapter 11 protection within a few weeks of each other. The 45-year-old company behind the Frio Country Resort and Frio Fest in south-central Texas also ended up filing for bankruptcy a month later, due to falling visitor numbers.
Hotels that also filed for bankruptcy in the last year include the Fairmont Breakers hotel in California’s Long Beach and the Fairmont Château Montebello in Québec. Both are five-star hotels located in historic properties.
Company behind Le Méridien Pasadena Arcadia files for Chapter 11 bankruptcy
The latest luxury hotel to quietly file for Chapter 11 protection in the Central District of California is SAICP Hotel, LLC. The developer of the 233-key Le Méridien Pasadena Arcadia reported assets of between $50 and $100 million along with an equivalent amount of liabilities.
The four-star hotel was opened in 2021 under the Marriott brand luxury Le Méridien and faced a string of financial troubles since the very start. In November 2024, the company defaulted on nearly $2.1 million in tax payments owed as part of the development project to build a new luxury hotel by the historic Santa Anita Horse Racetrack, TheRealDeal reported.
At an average 4.1, the Google reviews for the hotel are generally positive.
Related: Iconic Fairmont hotel owner files for Chapter 11 bankruptcy
The racetrack nestled halfway between Los Angeles and the San Gabriel Valley hosts some of the most prominent thoroughbred racing events throughout the year. LA-based investment firm Hankey Capital provided the initial $29 million loan to build the hotel.
“The rich heritage of the region is illuminated through mid-century textures and layers of chic equestrian design,” Marriott writes of the property on its website. “Global art installations provide thought-provoking conversations and experiences.”
Le Méridien Pasadena sits alongside the historic Santa Anita Racetrack.Marriott
What happened to Le Meridien Pasadena Arcadia?
While the hotel has not yet commented on the bankruptcy, the Chapter 11 filing indicates intent to continue operating as the owners restructure. Michael Jay Berger of Beverly Hills is also listed as the attorney representing SAICP.
The Aliso Viejo-based Pacifica Hotels is the management company overseeing Le Meridien Pasadena Arcadia; the bankruptcy filing also states that the company recently engaged in leadership recruitment.
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The Arcadia area also has Hilton, Langham, and AC Hotel properties, so presumably the owners of the new Le Meridien struggled in a saturated market outside a major city.
In December 2025, affiliates of Penn-Florida Companies, which began development of a new 164-room Mandarin Oriental in Boca Raton, also filed for bankruptcy without the hotel ever opening, as creditors began pursuing action on more than $50 million in debt.
Many saw the filing as a way to stall the foreclosure efforts, while Via Mizner Owner II is still set on a 2027 opening date (this has also been pushed back repeatedly since the project began in 2015).
Related: New Miami Beach hotel files for Chapter 11 bankruptcy
This story was originally published by TheStreet on May 1, 2026, where it first appeared in the Travel section. Add TheStreet as a Preferred Source by clicking here.
