Urgent: Château Montebello Hotel Faces Bankruptcy Amid Crisis

UPDATE: The iconic Château Montebello hotel in Canada is facing bankruptcy as a judge in Quebec has appointed PwC to oversee its sale. This urgent development comes as the historic hotel, renowned for being the largest log cabin in the world, struggles under the weight of financial difficulties linked to its former owner, China Evergrande Group.

Officials confirmed that the sale process is now in motion following a ruling earlier this week. Château Montebello, built in the 1930s from over 10,000 red cedar logs, had been a premier destination on the Ottawa River, but is now entangled in Evergrande’s staggering debts exceeding $300 billion. The real estate giant, once the largest in China, has been labeled “the most indebted company in the world” after defaulting on multiple loans.

The hotel offers 211 rooms and suites, averaging at $230 CAD ($163 USD) per night, and boasts over 40 unique activities for guests, making it a beloved retreat for tourists seeking a true Canadian experience.

Just months prior, in April 2025, Oheka Castle on Long Island filed for Chapter 11 protection, facing debts of over $60 million. Similarly, the Breakers hotel in Long Beach declared bankruptcy in late October, carrying over $50 million in debts due to a failed renovation. These closures highlight a troubling trend in the hotel sector amidst overall industry growth.

Despite the financial turmoil, Fairmont has reassured guests that operations will remain unaffected during the sale process due to a long-term contract with the resort. “For 95 years, Fairmont Le Château Montebello has been known for its rustic charm and beautiful natural surroundings,” the resort states, emphasizing its commitment to providing a welcoming atmosphere.

PwC’s next steps will be crucial as they search for a buyer willing to invest in the storied property. The outcome of this sale could redefine the future of this cherished hotel, which has been a symbol of luxury and Canadian heritage for decades.

Stay tuned for more updates on this developing story as the fate of Château Montebello hangs in the balance.