A bankruptcy court in Miami is set to consider an unusual proposal to sell a downtown waterfront hotel through an international, no-reserve auction conducted by Concierge Auctions and Sotheby's across multiple continents, with the property expected to close regardless of the final bid price.
340 Biscayne Owner LLC, the debtor-in-possession in a Chapter 11 bankruptcy case filed in the United States Bankruptcy Court for the Southern District of Florida (Case No. 24-23028-LMI), is seeking approval to auction the Holiday Inn Port of Miami-Downtown hotel at 340 Biscayne Boulevard through a series of live events in Abu Dhabi, Dubai, and New York City, with simultaneous digital bidding available worldwide.
The motion, filed October 10, 2025, by Pardo Jackson Gainsburg & Shelowitz, PL, proposes an auction format rarely seen in bankruptcy proceedings: a globe-spanning, no-reserve sale of an operating hotel that will be marketed to international ultra-high-net-worth buyers through one of the world's most prestigious auction houses.
"The Debtor believes, in its sound business judgment, that having authority to sell the Assets and conducting an auction pursuant to the Sale Procedures will enable the Debtor to sell the Assets for the highest possible price," according to the motion filed by the debtor.
The Property and Current Operations
The assets up for auction include the real property at 340 Biscayne Boulevard (where a Holiday Inn hotel is currently operating), and all tangible personal property including furniture, fixtures, and equipment. The package also includes intangible assets such as transferable development rights, licenses, permits, and governmental approvals associated with the property.
The debtor filed for Chapter 11 bankruptcy protection on December 13, 2024, and has been operating the hotel as a debtor-in-possession. According to the motion, the hotel operations will be closed between the execution of a purchase agreement and the closing date. The debtor will notify Holiday Hospitality Franchising, LLC of the anticipated closing date and work toward an orderly shutdown of the reservation system, which the debtor believes can be accomplished with 30 days' notice.
International Auction Format
The auction will be conducted by Concierge Auctions, LLC, working in conjunction with Sotheby's, and will unfold over approximately three weeks across multiple international venues. Bidding will open on November 30, 2025, with the first live unveiling of bids at Sotheby's Abu Dhabi on December 1, 2025. The property will be featured again at a live event in Dubai on December 5, 2025, before the auction concludes when "the gavel falls" at Sotheby's Breuer Building in New York City on December 17, 2025, with a simultaneous simulcast in Miami.
Throughout this period, qualified bidders will be able to submit bids through Concierge Auctions' digital bidding platform at www.conciergeauctions.com, combining the traditional prestige of live Sotheby's auctions with modern online bidding technology.
The auction will be conducted without a reserve price, meaning the property will be sold to the highest bidder regardless of the amount, subject only to bankruptcy court approval. There is no stalking horse bidder and no break-up fee structure, unusual features in a bankruptcy sale of this magnitude.
Financial Terms and Bidding Requirements
To participate in the auction, prospective buyers must register as qualified bidders and post an initial deposit of $100,000 with the escrow agent, Ultra Escrow, a division of Fidelity National Title. The winning bidder must then deliver a secondary deposit equal to 10% of the winning bid amount (less the initial deposit) within two business days of being declared the winner.
The winning bidder will also be required to pay a buyer's premium equal to 6% of the gross purchase price, which will be distributed among the auctioneer and various brokers. From this buyer's premium, 1% will go to the buyer's broker (if any), 1% to the listing broker, and the remainder to Concierge Auctions after the firm retains 3% of the purchase price.
To incentivize early bidding, the debtor is offering a "Starting Bid Incentive Credit" equal to 33.33% of the buyer's premium for any bidder who submits a starting bid by 11:59 p.m. Eastern Time on November 30, 2025. This credit would apply only to the starting bid amount, not to any subsequent increases.
The debtor will also reimburse the auctioneer for marketing and advertising costs up to $150,000, a significant investment reflecting the international scope of the marketing campaign planned for the property.
Secured Creditor Position and Credit Bidding
According to the motion, the claims bar date has passed, and with the exception of tax claims that will be paid at closing, Cirrus 340BB Lender LLC and Cirrus Real Estate Funding LLC (collectively "Cirrus") are the debtor's only secured creditors asserting liens on the assets. The City of Miami also asserts a placeholder lien of record for $2,000 on the property.
The secured claim of Cirrus is disputed, according to the filing. However, if Cirrus is permitted by the bankruptcy court to submit a credit bid (bidding with its debt rather than cash), the auction procedures provide for a different fee structure: Cirrus would pay a flat fee of $750,000 to the auctioneer rather than the standard 6% buyer's premium, but only if Cirrus is the winning bidder.
The motion requests that the sale be free and clear of all liens, claims, and encumbrances pursuant to Section 363(f) of the Bankruptcy Code, with all such liens attaching instead to the net proceeds of the sale. An amount equal to either a Cirrus Claim Reserve (to be determined by the court) or the allowed Cirrus claim (if determined before closing) would be deposited into escrow at closing.
Legal Basis and Business Judgment
The debtor's motion relies on Section 363(f) of the Bankruptcy Code, which permits the sale of property free and clear of interests if certain conditions are met. The motion argues that at least one of the five statutory conditions will be satisfied: that applicable non-bankruptcy law permits such a sale, that the interested entity consents, that the interest is a lien and the price exceeds the liens, that the interest is in bona fide dispute, or that the entity could be compelled to accept monetary satisfaction.
The motion emphasizes that courts apply a "business judgment" standard to evaluate a debtor's sale procedures, requiring only that the debtor articulate sound business reasons for the proposed transaction. As stated in the motion: "The business judgment rule proscribes judicial second guessing of the trustee's judgment on the sale and the procedure for the sale so long as the trustee has met the burden of taking the action in good faith and in the exercise of honest judgment."
The debtor also requests a finding of good faith under Section 363(m) of the Bankruptcy Code and an exemption from transfer taxes pursuant to Section 1146(c).
Alternative Sale Options
While the auction is the primary vehicle for selling the property, the motion preserves the debtor's right to accept a "Private Sale" to one of three parties previously disclosed to Concierge Auctions (referred to as "Carveout Private Sale Parties") before the auction concludes, provided certain deadlines are met. Any motion seeking bankruptcy court approval of such a private sale must be filed by November 15, 2025, with court approval obtained by November 25, 2025. If a private sale to one of these carveout parties is approved, no buyer's premium would be owed.
Additionally, if the debtor receives an offer from any other party that it determines will be the highest and best offer, the debtor may seek court approval to consummate a "Preemptive Sale" before the December 17 auction close date, though in that scenario the buyer would still owe the full 6% buyer's premium.
Timeline and Closing
The auction is scheduled to close on December 17, 2025, with the winning bidder announced at that time. A backup bidder will also be identified to step in if the winning bidder defaults. The debtor will then file a motion seeking bankruptcy court approval of the sale, with closing to occur on the later of (a) 45 days after signing the Asset Purchase Agreement, or (b) 11 days after entry of the sale approval order.
The hearing to consider the debtor's motion for approval of the auction procedures was previously scheduled for October 20, 2025, at 9:30 a.m. before Judge Laurel M. Isicoff. Separately, the debtor's plan of reorganization—which contemplates this asset sale—is scheduled for a confirmation hearing on December 11-12, 2025.
Broader Context
The use of an international, multi-city Sotheby's auction to sell bankruptcy assets represents an increasingly sophisticated approach to maximizing value in Chapter 11 cases, particularly for unique or high-value assets that may appeal to global buyers. Concierge Auctions, which merged with Sotheby's real estate operations, specializes in marketing luxury properties to ultra-high-net-worth individuals worldwide.
Miami's downtown real estate market has seen significant volatility in recent years, with the hospitality sector particularly affected by changing travel patterns and financing conditions. The property's location on Biscayne Boulevard near the Port of Miami positions it in a high-visibility area that could attract redevelopment interest beyond traditional hotel operators.
The motion was prepared by attorneys at Pardo Jackson Gainsburg & Shelowitz, PL, who represent both 340 Biscayne Owner LLC and BH Downtown Miami, LLC in their jointly administered bankruptcy cases.
The bankruptcy case is being administered in the United States Bankruptcy Court for the Southern District of Florida, Miami Division, under Case No. 24-23028-LMI before Judge Laurel M. Isicoff.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 52 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.