Investors sue Sothebys for $7.5 million over Utah condotel project

A group of 28 investors filed a federal lawsuit on October 9, 2026, against Sotheby's International Realty over alleged losses exceeding $7.5 million. MPA Magazine reported that the legal action claims the luxury brokerage marketed condotel units at a ski-resort project as safe, Hilton-backed investments without disclosing financial problems. [1]

The suit was filed in the United States District Court for the Central District of California. According to MPA Magazine, the plaintiffs claim Sotheby's International Realty failed to inform them that the project developers could not afford to finish the construction. [1]

The development at the center of the lawsuit is The Ascent at Park City, located in Park City, Utah. MPA Magazine reported that the 120-unit condominium-hotel was branded under Hilton's Tapestry Collection, but the project was foreclosed upon and remains unfinished. [1]

Sotheby's is a multinational corporation headquartered in New York City that operates as a broker of art, jewelry, and collectibles across 80 locations worldwide. An investor allocates financial capital into assets such as real estate with the expectation of a future financial return. [2][3]