The Real Deal Miami

Royal Palm-owner accused of diverting funds

June 20, 2008 01:10PM

In the latest chapter of legal dispute over Miami Beach’s Royal Palm
hotel, owner Guy Mitchell has been accused of diverting nearly $4
million in funds from the resort to personal offshore accounts in the
Cook Islands. The 417-room hotel, which Mitchell and partner Robert
Falor purchased from developer R. Donahue Peebles
in 2005, was recently placed under receivership by a New York
court-installed judge, after Mitchell lost an unrelated court case
involving a Chicago asset. Mitchell fell behind on his $134 million in
debt for the building after plans to convert it to condos fell through.