The operator of the Pharrell Williams-backed Goodtime Hotel plans to stop managing the South Beach property by the end of May, a move expected to eliminate more than 100 jobs and raise new questions about the hotel’s future.
Miami Beach’s hospitality sector is facing fresh uncertainty after the company managing one of its most high-profile, celebrity-backed hotels said it will cease operations at the site, potentially leaving its entire on-site workforce without jobs.
The Goodtime Hotel is a 266-room property backed by musician Pharrell Williams and Miami nightlife entrepreneur David Grutman in 2021. Now the hotel is facing a foreclosure lawsuit. Neither Grutman nor Pharrell is not named in the lawsuit and it is unclear with the duo a still financially tied to the hotel. A representative told The Miami Herald they have not been involved since mid- to late-2024.
The hotel is facing a $149.3 million foreclosure lawsuit and is set to shut down by May 31, 2026. The property is currently under lender control following missed payments to CIM Group.
The filing indicates that 114 employees working at the hotel and its on-site Strawberry Moon venue will be affected, and that the layoffs are expected to be permanent. It also states that workers are not represented by a union and do not have bumping rights, meaning they cannot displace less senior employees to remain employed.
“Highgate Hotels plans to cease operations at the Goodtime Hotel at 601 Washington Ave. on May 31, or within 14 days after that date,” the WARN notice said, according to the South Florida Business Journal.
It remains unclear whether the Goodtime Hotel itself will close or continue operating under a new management company. As of this week, the property was still being marketed online as part of Marriott International’s Tribute Portfolio, with rooms and amenities listed on both Marriott’s website and the hotel’s own site.
The uncertainty suggests the layoffs could be tied to a management transition rather than a full shutdown. For workers, however, the distinction may offer little comfort in a tourism-dependent area where jobs in hotels, restaurants and nightlife venues are closely linked.
At the time of its debut, the Goodtime Hotel quickly drew attention for its pastel design, pool parties, and celebrity aura. The project was widely seen as part of a new wave of investment aimed at reshaping parts of South Beach.
In late 2023, the hotel joined Marriott’s Tribute Portfolio, a move that signaled an effort to pair its boutique identity with the reach of a global hospitality brand.
Recent legal and financial troubles, however, have clouded that trajectory.
In March, a real estate affiliate of Los Angeles-based CIM Real Estate Credit filed the foreclosure action. The complaint alleges the borrower defaulted on its mortgage after missing interest payments and failing to repay the loan at maturity. The case targets Washington Squared Owner LLC, the listed owner of the hotel.
Separately, Miami Beach-based Link Hospitality has sued the hotel’s ownership, alleging it is owed more than $523,000 under a staffing agreement. The owners have denied those claims in court filings, according to prior reporting.
Together, the operator’s planned exit and the ongoing legal disputes point to mounting financial strain at a property closely associated with Williams’ high-profile brand and Miami Beach’s luxury hospitality scene.
Miami Beach continues to promote itself as a leading U.S. tourism destination, drawing visitors with its beaches, nightlife and luxury hotels. But the developments at the Goodtime underscore the volatility of the hospitality industry, even in high-demand markets.
For the more than 100 workers facing job losses, the impact is immediate.
“In a town built on check-ins, cocktail tabs, and weekend crowds, 114 pink slips land with a thud,” the original report noted.
