The Royal Palm Resort Hotel, a South Beach property that had been mired in debt and drama for years, found a new owner at a foreclosure auction Monday.  California-based Sunstone Hotel Investors submitted the $126.1 million high bid at an online auction held through the Miami-Dade clerk of courts.  The company, which owns 30 other hotels, said Monday that it was seeking a manager for the property at 1545 Collins Ave., which will undergo ‘comprehensive’ renovations expected to take a couple of years.

Built in 2002 on two acres of oceanfront property, the 409-room hotel has gone through a string of owners and legal battles.  A court-appointed receiver retained hotel investment services firm Jones Lang LaSalle Hotels as the agent for the foreclosure sale.  “The Royal Palm is an irreplaceable asset and represents a rare acquisition opportunity,” Gregory Rumpel, the firm’s executive vice president, said in a statement. “Hotels of this caliber are usually held by owners for long periods, and are seldom seen on the market.” Read more…