Owner of Margaritaville Resort Times Square Files for Bankruptcy

It seems it’s not all sunshine and tropical cocktails for Soho Properties, the owner of Margaritaville Resort Times Square.

Seeking to fend off a foreclosure auction of the $370 million New York hotel, Soho has filed for Chapter 11 bankruptcy, according to Travel Weekly. The Margaritaville outpost opened just two years ago, in June 2021 and is located on Seventh Avenue in the Big Apple.

As part of its July 9 filing with the U.S. Bankruptcy Court’s Southern District of New York, the property’s owner said it has experienced “challenging market conditions” related to the pandemic. In particular, Soho Properties Executive Vice President Sethian Pomerantz said the property has been grappling with “operating shortfalls” during its two years of existence.

The good news for Margaritaville fans is that things have started to look up and revenue is now projected to exceed $25 million by year’s end. With the bankruptcy filing in place, a foreclosure auction of the property has also been prevented.

Soho Properties is now hoping to refinance the hotel’s mortgage and other debt, which amounts to more than $300 million, TravelWeekly reported.

The property includes 235 guest rooms, five restaurants and bars and a street-level Margaritaville retail store. Additional quirky highlights include New York’s largest Tiki Bar and a 32-foot replica of the Statue of Liberty holding a margarita in place of her iconic torch inside of the two-story Margaritaville Restaurant. And in true Jimmy Buffet style, there’s also a year-round outdoor heated pool onsite.