Fontainebleau Hotel Sued Over New Condo Rental Rules

Some owners claim the changes could be an "economic disaster" for them

Apr. 10, 2026 at 10:42pm

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A high-end, photorealistic studio still-life photograph featuring a stack of hotel room keys, a hotel room key card, and a hotel room service menu arranged elegantly on a clean, white seamless background, conceptually representing the abstract corporate strategy and financial implications of the dispute between the hotel and its condo owners.The legal battle over the Fontainebleau Hotel's new condo rental rules could have significant financial consequences for both the hotel and its property owners.Today in Miami

The Fontainebleau Hotel in Miami is facing a lawsuit from condo owners in its Tresor and Sorrento towers who claim new rules governing unit rentals have the potential to financially ruin them. The dispute centers on owners who rent out suites and junior suites for profit, with the hotel requiring a 55% revenue share plus additional fees for those who opt out of the hotel's internal rental program.

Why it matters

The lawsuit highlights the ongoing tensions between hotel operators and condo owners who seek to maximize profits from their properties. The new rules imposed by the Fontainebleau could significantly impact the ability of condo owners to generate rental income, potentially forcing them to join the hotel's program against their wishes.

The details

The updated rules set to go into effect on May 15 require owners who opt out of the hotel's rental program to pay $1,000 for each night of a guest's stay. This charge leaves owners who opt out with little to no profit. The new rules also force opt-out owners to pay extra for sheets and towels and hire their own housekeepers, who are not allowed to work on weekends. Additionally, opt-out owners are required to have a representative sitting at the front desk to check in guests rather than using the hotel's front desk.

  • The new rules are set to go into effect on May 15, 2026.
  • The lawsuit was filed in April 2026.

The players

David Haber

The attorney representing six condo owners suing the Fontainebleau Hotel.

Fontainebleau Developments

The company that owns and operates the Fontainebleau Hotel.

Tresor and Sorrento Towers

The condo towers within the Fontainebleau Hotel complex where the lawsuit was filed.

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What they’re saying

“The clock is ticking. Our clients are facing the potential of economic disaster.”

— David Haber, Attorney

“They're going to force the owners to have a representative sitting at the front desk to check (guests) in rather than the hotel front desk checking them in, which was the way of doing business prior to these proposed rules.”

— David Haber, Attorney

What’s next

The lawsuit is seeking an immediate injunction to permanently block the changes to the rental rules. A Miami-Dade County judge will decide whether to grant the injunction.

The takeaway

This case highlights the ongoing tensions between hotel operators and condo owners who seek to maximize profits from their properties. The Fontainebleau's new rental rules could significantly impact the ability of condo owners to generate rental income, potentially forcing them to join the hotel's program against their wishes. The outcome of this lawsuit could set a precedent for how hotels and condo owners navigate these types of disputes in the future.