Top Cape Town hotel owners fight closure over allegation of 'breaking local by-law'
The five-star Cape Royale Hotel has become one of the city’s flagship destinations.
It offers guests a poolside, rooftop bar boasting breath-taking panoramic views of the Atlantic Seaboard described as the “perfect way to spend summer evenings while enjoying delicious cocktails”.
Penthouses, Marie and Louise, offer the perfect backdrop for corporate gatherings while Casuarina Wellness Centre and Spa can be found at the hotel which offers guest luxurious spa and beauty treatments.
“But the owner of the Cape Royale Hotel could be having sleepless nights fighting a lawsuit to shut down the establishment,” according to a report on www.timeslive.co.za
Last week (Mar 23) the High Court in Cape Town heard an application for leave to appeal against a judgment delivered by the court in February shutting down the Green Point hotel for contravening a municipal by-law, says the report.
“The administrator of the hotel body corporate‚ Simon Woolley of Noland Forensics‚ sued the developer‚ Paschal Phelan‚ for contravening zoning regulations.
“Phelan is also a trustee of the body corporate‚ which has been under administration since 2013 when a judge found him and his co-trustee guilty of ‘fiduciary failings’.”
In his court papers Timeslive reports that Woolley said the hotel was “operating unlawfully from the property”‚ which “constitutes a criminal offence”. He said “the use of the property as a hotel poses a health‚ safety and fire hazard” which could compromise the R680-million insurance policy.
Phelan opposed the application but the court interdicted him from “operating or permitting the operation of a hotel on the property unless and until the required approvals have been obtained from” the City of Cape Town.
Cape Royale’s Taryn Lee Vos told TimesLIVE the hotel was operating optimally. “Cape Royale has appealed the judgment‚ which was obtained by the administrator of the body corporate without consultation with or the consent of the owners‚ and continues to operate as normal with one of the highest occupancy rates in Cape Town‚” she said.
Lee Vos said they expected the “matter to be fully resolved in the coming months”. Woolley said judgment would be delivered next week.