- Fontainebleau Miami Beach has filed a lawsuit against Benichay Brothers Group, M.A.K. Realty Group, and Hillcrest Property Services for allegedly bypassing its exclusive condo-hotel rental program.
- The suit claims the brokerages booked paying guests via short-term rental platforms like Airbnb, in violation of agreements requiring all non-family bookings to go through the resort.
- Fontainebleau alleges the firms represent over 100 unit owners and have actively encouraged clients to avoid or exit the hotel’s rental program.
The Backstory
Fontainebleau Miami Beach is in a legal fight with three brokerages over rentals, per The Real Deal. On March 21, the resort’s ownership entity — tied to Jeffrey Soffer’s Fontainebleau Development — filed a tortious interference lawsuit in Miami-Dade Circuit Court.
At Issue
The resort’s two condo-hotel towers, Trésor and Sorrento, include 748 units. About 674 unit owners are enrolled in the Fontainebleau rental program, which gives the resort exclusive rights to lease out units to paying guests. While owners can hire outside managers for their units, the agreements prohibit them from booking paying guests independently.
The Allegations
The lawsuit accuses Benichay Brothers, M.A.K. The firms allegedly helped owners bypass agreements by booking guests through Airbnb, VRBO, Booking.com, and similar platforms. It also alleges brokers are advising clients on how to conceal such bookings and even urging them to terminate their agreements with the resort.
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Proof In The Bookings
The complaint says front desk staff received third-party bookings, allegedly proving unauthorized paid stays outside the resort’s rental program.
Industry Tensions Rise as Legal Battle Unfolds
Representatives from Fontainebleau, Benichay Brothers, and Hillcrest did not respond to requests for comment, while M.A.K. Realty Group declined to comment. The case highlights rising tensions between condo-hotel owners and operators over short-term rental platform restrictions and control. Rising vacation rental demand is fueling more legal disputes, particularly in luxury markets like Miami’s branded condo-hotel sector. The outcome of this lawsuit could set a precedent for how far condo-hotel operators can go in controlling third-party rental activity moving forward.
Final Word
The clash between individual ownership rights and centralized rental control is shaping up to be one of the defining legal battlegrounds in the evolving short-term rental economy.
