The Real Deal Miami

Battle for Royal Palm continues

July 03, 2008 10:59AM

R. Donahue Peebles, the developer and now the minority owner of Miami Beach’s Royal Palm hotel, has asked a Miami-Dade judge to give him control of the property, now managed by the companies of Coral Gables investor and majority partner Guy Mitchell. The hotel is in a foreclosure battle and being managed by a New York judge due to an unrelated case involving Mitchell and a New York-based lender for another project. Peebles claims that a clause in their partnership agreement allows him to take control of the hotel in the face of gross mismanagement by Mitchell. According to Peebles’ lawyer, this includes having a “retired New York judge with no experience operating a hotel” running it.