Inside the Mandarin Oriental Boca Raton Bankruptcy Auction

Eleven years. That is how long it took for a luxury hotel in downtown Boca Raton to go from groundbreaking announcement to bankruptcy auction. The Mandarin Oriental brand is still on the building, but nobody has ever checked in.

• Penn-Florida filed Chapter 11 in December 2025 after defaulting on a $130.2 million loan that matured in September 2023.
• The bankruptcy auction was held on June 22, 2026, with a court hearing to approve the results scheduled for June 26.
• The main secured creditor, TIG Romspen, had the right to credit bid up to the full amount of its claim.

The Mandarin Oriental hotel at 103 East Camino Real in downtown Boca Raton was supposed to be a landmark. Penn-Florida Companies announced it in 2015, promising completion by 2017. Construction did not start until 2019, the $130.2 million loan defaulted in 2023, and Penn-Florida filed Chapter 11 in December 2025 to block foreclosure. According to the South Florida Business Journal, Bankruptcy Judge Erik P. Kimball approved the auction for June 22, 2026. No public outcome has been released. The building is topped off and structurally complete, but it has never welcomed a guest.

How did the Mandarin Oriental Boca Raton end up in bankruptcy?

Here is the timeline that matters. Penn-Florida announced the Mandarin Oriental hotel and branded residences at Via Mizner in 2015. Construction did not begin until 2019. That is already two years behind the original completion target before a single shovel hit the ground. The $130.2 million senior loan from TIG Romspen US Master Mortgage (a Cayman Islands limited partnership with an office in Toronto) matured in September 2023. Penn-Florida could not refinance or repay it. With dozens of development projects moving through the Boca Raton pipeline, this one became a cautionary tale.

The Chapter 11 filing: On December 23, 2025, Penn-Florida affiliates Via Mizner Owner II LLC and Via Mizner Pledgor II LLC filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Florida. The filing blocked foreclosure and bought time for restructuring.

The debt stack: TIG Romspen holds $130.2 million in secured debt. Via Mizner Funding (Tequesta-based) holds an additional $80 million secured claim. There is also approximately $24.6 million in unsecured claims, including a disputed $502,600 claim from Mandarin Oriental itself. Total claims exceed $234 million.

The developer's position: Penn-Florida estimated the completed hotel would be worth over $450 million. The company blamed post-pandemic headwinds, elevated interest rates, rising insurance costs, and bad timing on loan maturities. Penn-Florida's attorney said in May 2026 that the company was in "advanced stages" with investors and lenders to refinance. That did not prevent the auction from moving forward.

What happened at the June 2026 auction?

The auction took place on June 22, 2026. A court hearing to approve the results was scheduled for June 26 in West Palm Beach. As of this writing, no public record of the auction outcome has been released.

Here is what you need to understand about credit bids. Under the approved bid procedures, TIG Romspen had the right to serve as the stalking-horse bidder. That means the lender could acquire the property by canceling debt rather than paying cash. If the lender bids its own loan amount, nobody else has to show up with a higher offer. For unsecured creditors to receive any meaningful recovery, the sale price would need to exceed the $210 million in secured debt. Adam Etra of Newmark served as the debtor's broker.

The outcome determines who finishes the hotel, whether the Mandarin Oriental brand stays attached, and how much (if anything) unsecured creditors recover.

What is happening with the Mandarin Oriental brand in South Florida?

The Boca Raton bankruptcy involves only the hotel. The adjacent 88-unit Mandarin Oriental condo building at 105 East Camino Real is a separate legal entity (Via Mizner Owner III LLC) and is not part of the Chapter 11 filing. That said, the condo has its own problems. It is expected to be completed in summer 2026, nearly 9 years after the original target date. Multiple buyers have filed lawsuits seeking the return of their deposits due to construction delays. We covered the condo situation separately in our earlier article on Penn-Florida's Mandarin Oriental condo.

Meanwhile in Miami, the original Mandarin Oriental on Brickell Key was imploded on April 12, 2026. The 23-story hotel had operated for 25 years before closing in May 2025. Swire Properties is building a new two-tower development on the site: 151 guestrooms, 61 private residences, and 28 hotel residences. Completion is expected in 2030. That project is moving forward with a different developer, a different financial structure, and none of the baggage that has defined the Boca Raton situation.

The Mandarin Oriental brand itself is not responsible for construction or development. Penn-Florida licensed the name. A branded residence is only as reliable as the company building it.

What does this mean for preconstruction buyers in Boca Raton?

As Larry Mastropieri explained on the Discover South Florida Podcast: "Florida law does not require developers to disclose the original timeline when selling units, and that gap matters for every pre-construction buyer in the state. Buyers need to understand who is building the project, their track record, and whether they can actually finish the project. This is exactly why that matters."

The Via Mizner saga is not an isolated incident for Penn-Florida. Over the past two years, the company has faced foreclosure actions on nearly every property in its Boca Raton portfolio. Two office buildings at 101 and 1 North Federal Highway were hit with foreclosure suits (resolved after local investor James Batmasian took over). A vacant assisted living site at 375 East Royal Palm Road was sold for $27 million to settle a foreclosure. The 366-unit apartment building at 101 Via Mizner narrowly avoided a foreclosure auction through a $235 million partnership with Grant Cardone in January 2025.

Developer track record matters as much as renderings. Financing structure matters. Construction timelines matter. This is why public scrutiny of large-scale Boca Raton redevelopments has become more intense in recent years.

Frequently Asked Questions about the Mandarin Oriental

What is the Mandarin Oriental Boca Raton bankruptcy about?

The bankruptcy involves the 164-room Mandarin Oriental hotel at 103 East Camino Real in downtown Boca Raton. Developer Penn-Florida filed Chapter 11 in December 2025 after failing to refinance or repay approximately $210 million in secured debt. The building is topped off and structurally complete but has never opened. The hotel was announced in 2015 with a 2017 completion target.

Who owns the debt on the Mandarin Oriental Boca Raton hotel?

The main secured creditor is TIG Romspen US Master Mortgage, a Cayman Islands limited partnership with an office in Toronto, holding a $130.2 million claim. Via Mizner Funding, based in Tequesta, holds an additional $80 million secured claim. There is also approximately $24.6 million in unsecured claims from various creditors.

Is the Mandarin Oriental condo in Boca Raton part of the bankruptcy?

No. The 88-unit condo building at 105 East Camino Real is a separate legal entity (Via Mizner Owner III LLC) and is not part of the Chapter 11 filing. The condo is expected to complete in summer 2026. However, multiple buyers have filed lawsuits seeking the return of their deposits due to construction delays. The hotel and condo are both developed by Penn-Florida, but the financial and legal situations are distinct.

What happened at the Mandarin Oriental Boca Raton auction in June 2026?

The bankruptcy auction was held on June 22, 2026, with a court hearing to approve results scheduled for June 26 in West Palm Beach. As of this writing, no public record of the outcome has been released. TIG Romspen had the right to credit bid up to the full amount of its $130.2 million secured claim.

Does Florida require developers to disclose project timelines to preconstruction buyers?

No. Florida law does not require developers to disclose the original timeline or the actual time a project took to complete when selling units. Purchase agreements typically include language stating that completion dates are estimates, not guarantees. This means buyers must do their own due diligence on the developer's track record, financial health, and history of delivering projects on time.

Local help for buyers and investors in Boca Raton

If you are buying, selling, or investing in Boca Raton, Highland Beach, or Gulf Stream, understanding developer track records and project financing matters. Reach out to The Mastropieri Group, Realtors®.

For practical, hands-on support across Boca Raton, call (561) 544-7000.

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