Royal Palm Hotel auctioned for $126 million

The Royal Palm Hotel was sold yesterday for $126.1 million to Sunstone
Hotel Investors. The Aliso Viejo, Calif.-based company now owns the
409-room hotel at 1545 Collins Avenue, one of 31 hotels in its
portfolio. Wachovia Bank, representing a commercial mortgage-backed securities fund, won a $142.7 million
foreclosure judgment against the hotel in April. The lender bid $94
million at the auction, but that number was topped by Sunstone, which
said it is looking for a company to manage the hotel. Sunstone plans
to begin a comprehensive renovation that could take two years to finish.
[SFBJ]