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.

The Hillsboro Beach Resort, a property that previously operated under the Sonder brand, is now subject to a foreclosure sale after lenders moved to recover the outstanding debt. The auction is one of several high-profile hospitality proceedings unfolding in the region this summer.

The timing is notable. Just across the county line in Miami Beach, the Goodtime Hotel was scheduled for its own foreclosure auction on July 1 — a near-simultaneous reckoning for two recognizable South Florida hotel properties. The clustering of these events suggests that pandemic-era financing structures and shifting travel economics are continuing to catch up with some segments of the regional hospitality market.

Despite the legal and financial turbulence surrounding its ownership, the Hillsboro Beach Resort remains open and is still accepting guests. That operational continuity is typical in foreclosure proceedings of this kind, where courts and lenders generally prefer to preserve the going-concern value of a property rather than shutter it ahead of a sale.

The resort sits in Hillsboro Beach, a small, upscale barrier-island community in Broward County between Pompano Beach and Deerfield Beach. Its location — on a narrow strip of land between the Atlantic Ocean and the Intracoastal Waterway — has made it a distinctive hospitality offering in a county not always associated with destination resort properties.

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.

The foreclosure sale is part of a broader pattern that real estate observers have been tracking across Miami-Dade and Broward counties, where a number of hotel assets financed during the low-interest-rate era are now struggling to service debt against a backdrop of higher borrowing costs and uneven post-pandemic performance.

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