NEW ORLEANS – On May 27, Sextant Stays, Inc., doing business as Roami since 2023, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Florida. The Miami-based hospitality company, specializing in short-term rentals (STRs) and managing over 500 units, expanded into New Orleans in 2019, establishing a major presence with approximately 100 New Orleans properties.
The bankruptcy filing indicates that Roami has around $5 million in assets but that its liabilities amount to $15.9 million. Founded by Andreas King-Geovanis who serves as its CEO, Roami rebranded from Sextant Stays to Roami with a $14 million Series A funding announcement round led by Vigo Capital, bringing its total funding up to $29 million in 2023.
Roami stated in its marketing material that it focuses on providing “spacious, group-friendly accommodations in urban areas” and emphasizing a “Predictive Hospitality” approach which aims to anticipate guest needs through technology. But there seems to have been a turning point coinciding with the rebrand to Roami which the company implemented across all markets, including New Orleans.
Roami’s New Orleans Properties
Roami manages approximately 100 properties in New Orleans, including:
- Two Roami properties in the CBD: one at Factors Row and the other at Duncan Plaza;
- Roami at Hibernia Tower situated near Canal Street;
- Roami at The Luzianne located in the Arts-Warehouse District; and
- Roami at St. Charles.
Reasons for the bankruptcy filing have not been disclosed. While it could relate specifically to Roami and its business management decisions and practices, the bankruptcy could also have been influenced by the recent beefing up of the STR regulatory framework in New Orleans.
New Orleans STR Regulatory Framework
There has been a strong reaction to the growth in STRs in the city from both neighborhood residents and civic leaders. In an interview with WWNO, Monique Blossom, Director of Policy at the Louisiana Fair Housing Action Center said about STRs, “The reality is it disrupts the quality of life in the neighborhoods where these are found.”
The regulations, which aim to control the proliferation of STRs, are prompting some companies to exit New Orleans, particularly due to provisions that prohibit corporate entities from holding STR permits in residential areas:
- Permit Limitations: Only one STR permit is allowed per square block in residential areas, and operators must reside on-site.
- Corporate Restrictions: Corporate entities are prohibited from holding STR permits in residential areas; only natural persons are eligible. This came into effect on July 1, 2023. It faced legal challenges but was upheld by a federal judge in March 2024.
- Geographic Exclusions: STRs are banned in specific areas, including the French Quarter and parts of the Historic Garden District.
- Platform Accountability: Since March 2025, platforms have been required to verify that listings have valid city-issued STR permits with non-compliant platforms facing fines of $1,000 per illegal listing per day.
In Feb., Airbnb and several local operators filed a lawsuit against the city, arguing that the regulations infringe on property owners’ rights and impose undue burdens on booking platforms. The lawsuit is currently ongoing.
One STR company operating nationwide and internationally has indicated they are pulling out of New Orleans due to the tightening of regulations. Such decisions impact local employees hired by STR companies to manage these properties, including property management roles, maintenance, security and cleaning positions.
Other companies, like Hosteeva and Sonder, have continued operating STRs by renewing existing commercial STR licenses and operating in mixed-use or commercial zones where corporate ownership is permitted. Hosteeva is a Delaware-based firm operating units in areas like Mid-City, while Sonder Hospitality USA Inc., headquartered in San Francisco, maintains STRs at over 30 properties across the city.
Attractiveness of STRs
As of April this year, there are 4,727 active STR listings in the city, with an average daily rate of $269 and an occupancy rate of 44.2%, leading to an average annual revenue of approximately $39,536 per property.
During major events such as Super Bowl LIX in Feb., the STR market can surge, with occupancy rates climbing to 64% and average daily rates up to $1,227 which results in a revenue per available room (RevPAR) increase of 826%.
Despite the potential for revenue earnings, many STR companies are finding the market inaccessible. This may not be a factor in Roami’s bankruptcy filing, but South Florida, where Roami is based, has also implemented strict STR rules, including restricting STRs to commercially zoned areas, and has implemented bans on STRs in cities like Miami Beach where STRs are only allowed to operate in very limited areas.
