1655-4 African American/Blacks l a �
HOTELS
Royal
Palm
revenue
falling
short
The Royal Palm resort hasn't
seen the profits it would like,
though it could clear about$43
million by selling off rooms as
condo-hotel units.
BY DOUGLAS HANKS Ill
dhanks'coherald.com •
The Royal Palm Crowne Plaza
Resort has not lived up to the
potential of its beachfront location
but could generate$75 million by
converting a third of its rooms to
condo-hotel units, according to a
financial proposal prepared by
aides to owner R. Donahue Pee-
bles.
Though the 417-room hotel sits
on city-owned beachfront in South
Beach,the Crowne Plaza brand—
which targets business travelers
and is generally regarded as a
notch or two below luxury — has
caused revenue and occupancy to
lag at the Royal Palm,the proposal
said.
"The Crowne Plaza flag is cer-
tainly not optimizing the superb
physical plant and market position-
ing of Don's property," Michael
Browarnik, an investment banker
in Fort Lauderdale working with
Peebles, wrote in a Nov. 3 memo.
"In hindsight,we recognize that it
was not the best flag for South
Beach."
Browarnik's memo was part of a
detailed proposal seeking a $107
million loan to fund a condo-hotel
conversion at the Royal Palm.The
proposal,reviewed by The Herald,
offers an insider's assesment of a
hotel project subsidized by tax dol-
•TURN TO ROYAL PALM,4C
1,11111rit" • MIS IN
•
1 f,
C.W.GRIFFIN/HERALD STAFF
A NEW DEAL: Don Peebles,
owner of the Royal Palm
Resort, has signed a contract
to sell the hotel.
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