Fontainebleau Miami Beach $975 Million Debt Goes to Workout (1)

A $975 million loan on the Fontainebleau Miami Beach, the legendary South Florida hotel and resort, has been transferred to a special servicer that handles troubled debt as the coronavirus pandemic hammers the hospitality industry.

The loan, originated by Goldman Sachs Group Inc. in November and paid through March, was transferred to SitusAMC, according to information collected by Bloomberg.

The hospitality industry has been pummeled as travel, dining, conventions and other activities grind to a halt amid public shutdown orders to slow the spread of the virus. About $8.2 billion in debt tied to lodging was transferred to special servicers ...