Sheraton Raleigh Hotel Files for Chapter 11 Bankruptcy Amid Financial Struggles
The Sheraton Raleigh Hotel, located in North Carolina's capital city and a prominent part of the downtown skyline since 1982, has filed for Chapter 11 bankruptcy. The hotel is owned by Raleigh Hotel XXIX Owner, which faces debts between $1 million and $10 million. Phoenix Ltd. Partnership holds the largest outstanding debt at $1.2 million. In March 2026, the property was sold to Indiana-based White Lodging for $27.78 million—a sharp decline from its previous sale price of $47.85 million in 2015. The hotel operator also faces legal issues including a civil judgment requiring payment of over $107,000 in unpaid state taxes and a defaulted commercial mortgage-backed securities loan due to declining real estate values and visitor numbers post-pandemic. White Lodging had previously announced plans to rebrand the property from Sheraton to Westin as part of its renovation strategy, though this transition has not yet occurred. The Chapter 11 filing aims for restructuring rather than liquidation, but it remains unclear whether operations will be affected or if guests staying at the hotel will face disruptions.
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Topics: bankruptcy chapter 11 financial distress hotel industry