Why Batmasian Cut Underground Parking at Royal Palm Hotel in Boca Raton

Rising construction costs forced a redesign of the 12-story Royal Palm Plaza Hotel. The Planning and Zoning Board approved revised plans on February 19, eliminating below-grade parking and reducing on-site spaces from 887 to 205.

Key Takeaways

James Batmasian's Royal Palm Plaza Hotel in downtown Boca Raton has been redesigned to eliminate underground parking, dropping the room count from 144 to 137 and on-site parking from 887 to 205 spaces.
The Planning and Zoning Board approved the revised plans on February 19, 2026, with a City Council vote expected next week.
A pedestrian bridge will connect the hotel to a new seven-story parking garage with 501 spaces, 6,000 square feet of restaurant space, and 2,700 square feet of retail.

James Batmasian's Royal Palm Plaza Hotel is one of the most significant development projects in downtown Boca Raton. The 12-story hotel at 200 South Federal Highway received initial approval in August 2022, but rising construction costs prompted a redesign. The Planning and Zoning Board approved the revised plans on February 19. Batmasian is the co-founder and president of Investments Limited, one of the largest privately held real estate firms in the country.

Batmasian has owned Royal Palm Place since the late 1980s. The 15.4-acre mixed-use property has been a fixture of his portfolio for decades. The revised plan eliminates underground parking entirely, dropping the room count from 144 to 137 and reducing on-site parking from 887 to 205 spaces. His attorney, Ele Zachariades of Miskel Backman LLP, said the cost of building below-grade parking made the original plan financially unworkable.

What changed in the revised plan?

The 149,000-square-foot hotel at 200 South Federal Highway will now include:

137 rooms (reduced from 144)
6,800 square feet of restaurant space
1,800 square feet for a fast food establishment
2,600 square feet of retail
1,300 square feet of outdoor dining
205 on-site parking spaces

To compensate for the lost parking, the hotel will connect via a pedestrian bridge to a new seven-story parking garage with 501 spaces, 6,000 square feet of restaurant space, and 2,700 square feet of retail. PGAL, a Boca Raton-based architecture firm, is the designer.

About 9,000 square feet of existing retail buildings will be demolished. A fountain will be removed, and two surface lots will be improved. Batmasian is also requesting a reduction in required parking across the full Royal Palm Place property from 2,099 to 1,147 spaces. The Boca Raton City Council is expected to vote next week.

Why was underground parking eliminated?

As Larry Mastropieri explained on the Discover South Florida Podcast, "They're reducing on-site parking from the proposed 887 to 205 spaces. It's a very different parking situation. Parking in this area is difficult, but I understand removing the underground parking completely. Again, it's pretty expensive to do this, and some of the other buildings in the area have had trouble with the ocean coming in. The water table is well above where these garages are built."

The combination of high construction costs and South Florida's challenging water table made below-grade parking financially and practically difficult. This is not unique to this project. Several downtown Boca developments have faced similar challenges with underground construction near the coast.

Considering buying or investing near downtown Boca Raton? Understanding how major developments affect parking, traffic, and property values matters. Talk to a real estate agent near Boca Raton who tracks these projects. Reach out to The Mastropieri Group or call (561) 544-7000.

What else is happening nearby?

This hotel is part of a larger wave of development reshaping downtown Boca Raton. Batmasian is also planning two separate 12-story hotel buildings with a combined 242 rooms about half a mile from this project. That puts significant hotel inventory in the pipeline for a small stretch of downtown.

The Royal Palm Plaza hotel site is within a mile of Mizner Park and less than 4,000 feet from where Terra and Frisbie Group are proposing the One Boca mixed-use project, which goes to a voter referendum on March 10. The Mandarin Oriental condo and hotel is also in downtown Boca, expected to be completed this year.

Between Batmasian's hotel pipeline and One Boca's nearly 1,000 residential units, downtown Boca is being reshaped by multiple developers at once. The concentration of proposals in this corridor is unlike anything the city has seen.

What does this mean for homeowners and buyers near the area?

Downtown Boca Raton is seeing overlapping development proposals within blocks of each other. The concentration of new density in this corridor could reshape the area's character over the next several years.

Homeowners near Royal Palm Place should expect construction activity once the City Council approves the project. The demolition of retail buildings and parking lot improvements will affect traffic patterns in the short term, but add hotel and dining options to the neighborhood in the long term.

The reduction in required parking from 2,099 to 1,147 spaces across Royal Palm Place signals a broader shift toward walkability and transit-oriented planning in downtown Boca, especially with the Brightline station nearby.

For buyers considering downtown Boca, the pipeline of hotel, residential, and mixed-use projects reinforces the area's trajectory as a higher-density urban center. That typically supports property values in surrounding neighborhoods, particularly for walkable locations near retail and transit.

Frequently Asked Questions about the Royal Palm Plaza Hotel

How many rooms will the Royal Palm Plaza Hotel have?

The revised plan includes 137 rooms, reduced from 144 in the original 2022 approval. The 12-story, 149,000-square-foot hotel at 200 South Federal Highway will also include restaurant space, retail, and outdoor dining.

Who is James Batmasian?

James Batmasian is the co-founder and president of Investments Limited, one of the largest privately held real estate firms in the country. His portfolio includes approximately 260 properties, 4,000 residential units, and over 4 million square feet of commercial space. He began buying real estate in the 1970s while a student at Harvard, and he relocated to South Florida in 1983.

When will Royal Palm Plaza Hotel construction begin?

The Planning and Zoning Board approved the revised plans on February 19, 2026. The Boca Raton City Council is expected to vote next week. Construction timing has not been announced.

How will parking work at the Royal Palm Plaza Hotel?

The hotel will have 205 on-site parking spaces, reduced from the original 887. A pedestrian bridge will connect the hotel to a new seven-story parking garage with 501 additional spaces, 6,000 square feet of restaurant space, and 2,700 square feet of retail.

What other projects is Batmasian planning in downtown Boca Raton?

Batmasian is also planning two separate 12-story hotel buildings with a combined 242 rooms about half a mile from the Royal Palm Plaza Hotel. He also owns Sandalfoot Square in West Boca Raton.

Local help for buyers and investors in Boca Raton

If you are buying, selling, or investing in Boca Raton, Delray Beach, or anywhere in Palm Beach County, understanding how major developments affect the market matters. Reach out to The Mastropieri Group, Realtors®.

For practical, hands-on support across Boca Raton, call (561) 544-7000.