The Real Deal Miami

Royal Palm owner linked to failed bank

September 02, 2008 01:35PM

Guy Mitchell, owner of the beleaguered Royal Palm hotel in South Beach, has an Integrity problem. Integrity Bank, based in the Atlanta suburb of Alpharetta, Ga., was closed by federal regulators after it reportedly lent nearly all of its available capital to Mitchell, whose assets were seized in New York after a Chicago condo-hotel project fell through. He’s also squabbling with partners at the Royal Palm, but now is the focus of attention as regulators try to determine whether Integrity violated Georgia banking laws, which limits borrowers from tying up more than 25 percent of a bank’s available capital.