The Real Deal Miami

Royal Palm flutters to loss

January 07, 2009 10:13AM

Facing foreclosure, South Beach’s Royal Palm Hotel posted a $2.4
million loss in November. Lenders
distributed statements to prospective buyers saying the hotel lost money in
the first 11 months of 2008. Hotel operations generated about $6
million in profit. But interest expenses of $7.5 million swung the
hotel to a net loss.