With many smaller hotels struggling with the double whammy of inflation and rising operating costs along with the lower spending ability of their customer base, a number have had to file for bankruptcy protection or even shut down entirely over the last year.
Two resorts in Miami Beach filed for Chapter 11 bankruptcy within a few weeks of each other in March 2026 while, even with the power of a major hotel brand behind them, the Fairmont Breakers hotel in California’s Long Beach and the Fairmont Château Montebello in the Canadian province of Québec are also among the names to file for protection in the past year.
The latest Chapter 11 petition filed in the Eastern District of California on July 15 was made by the owners of the 105-year-old Hotel Charlotte.
Hotel Charlotte near Yosemite National Park seeks bankruptcy protection in California
Built by Italian immigrant Charlotte DeFerrari in 1921 as a local inn and restaurant meant to call back to the area’s earlier Gold Rush period with its wooden frame, the hotel was added to the National Register of Historic Places in 1994 and in the modern period serves for many travelers as an entryway to the nearby Yosemite National Park — the property in Groveland, California is located 24 miles or approximately a 30-minute drive from the park’s Big Oak Flat entrance.
In the petition, Hotel Charlotte declares between $1 and $10 million in assets and the same amount in liabilities owed to fewer than 50 creditors.
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The Chapter 11 filing indicates that the historic hotel aims to continue operating as it restructures its finances while the declaration also states that repeated power outages in its part of northern California in 2024 and 2025 resulted in loss of revenue from the restaurant that ultimately ended up leading it to its current financial position.
With NPS numbers showing that more than 75% of visitors to Yosemite National Park coming in the summer, the hotel is highly dependent on the seasonal influx to make up for the dry spell in what is a fairly rural mountain community otherwise.
Hotel Charlotte
“Lodging just 24 miles from the entrance to Yosemite National Park”: Hotel Charlotte continues to operate amid bankruptcy filing
Hotel Charlotte representatives could not be immediately reached for comment on the petition that first surfaced online but its website shows that the hotel is still accepting reservations and welcoming guests to its 13 guest rooms and suites.
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“Step into the Old West at the historic Hotel Charlotte, located in the heart of downtown Groveland, California — offering lodging just 24 miles from the entrance to Yosemite National Park,” the hotel writes in advertising the property. “Our family-owned and operated hotel offers a cozy, affordable basecamp to launch your day’s adventure — or to rest and recover when it’s done.”
Haddix Law Firm in Modesto is representing owners Finn and Brennen Horsley who purchased Hotel Charlotte from the previous owners in 2019. The property has been operating without interruption since it was built in 1921.
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