As travel numbers in many parts of the country are impacted by rising operating costs and lower international arrivals, many hotel operators have felt the financial fallout, either creeping in slowly or hitting all at once.
The historic Hotel Charlotte near Yosemite National Park filed for Chapter 11 bankruptcy protection at the start of the summer. Rushmore Hotel & Suites resort in Rapid City, the main hotel serving overnight visitors to Mount Rushmore, also filed for bankruptcy in the Southern District of Florida in August 2026.
Other hotels to file for bankruptcy in 2026 include German hotel chain Revo Hospitality Group, the company behind Le Méridien Pasadena Arcadia and Harrison by Renzzi in Miami Beach.
Operator of Sheraton Raleigh Hotel files for Chapter 11 bankruptcy
The latest name to join that list is the Sheraton Raleigh Hotel in the North Carolina capital.
The city serves as a gateway for those visiting the state for both business and personal reasons. The 17-story Sheraton Raleigh skyscraper has also been a fixture of the downtown landscape since its construction in 1982.
According to the filing in North Carolina Eastern Bankruptcy Court, operating company Raleigh Hotel XXIX Owner is seeking to restructure with equal debts and liabilities of between $1 and $10 million as payments on a large loan edge in.
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As the Sheraton Raleigh is one of the more than 80% of Marriott hotels that are under the brand but privately owned and operated by independent franchisees, exact details on the company’s financial situation are not publicly available.
Phoenix Ltd. Partnership was reported as the hotel’s largest creditor, with an outstanding debt of $1.2 million.
In March 2026, the property was sold to Indiana-based hotel developer and management company White Lodging for $27.78 million, according to the News & Observer. That price represented a significant drop from the $47.85 million for which it sold in 2015.
Marriott
How the Sheraton Raleigh Hotel ended up in bankruptcy
“White Lodging expects to undertake a comprehensive transformation of the property and its amenities, including a brand evolution from a Sheraton to a Westin,” the company wrote in a press statement at the time of the purchase, the News & Observer noted.
The brand transfer has not happened yet, even as the hotel embarked on early renovations.
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Raleigh Hotel XXIX Owner also faced mounting legal troubles. In December 2025, Wake County Superior Court issued a civil judgment ordering it to pay more than $107,00 in unpaid state taxes to the North Carolina Department of Revenue, Triangle Business Journal reported.
A separate commercial mortgage-backed securities loan also entered default status when the company became unable to keep up, given the severe drop in real estate values and declining visitor counts due to Covid pandemic shutdowns.
Raleigh Hotel XXIX Owner could not be immediately reached for comment on the bankruptcy filing.
Although a Chapter 11 filing indicates intent to restructure in hopes of staying in business, it is also not immediately clear whether the filing will lead to any closures or affect guests currently staying at the hotel.
Related: Another national park closes hotels, campgrounds, overnight parking
