Phoenix’s Royal Inn Hotel Shut Down by Law Enforcement for Alleged Prostitution and Drug Trafficking

Phoenix’s Royal Inn Hotel Shut Down by Law Enforcement for Alleged Prostitution and Drug Trafficking

Hotel Owners and Operators Indicted on Multiple Charges, Including Racketeering and Money Laundering

Phoenix, AZ – The Royal Inn Hotel in Phoenix has been shut down following a joint law enforcement operation involving the FBI, U.S. Marshals, and the Phoenix Police Department. The hotel is accused of allowing prostitution and drug trafficking on its premises, officials announced.

On Tuesday at approximately 6 a.m., search and seizure warrants were executed at the Royal Inn, located near Bethany Home Road and 27th Avenue. A 44-count indictment against the hotel’s owners, operators, and corporate entity was unsealed by the U.S. District Court.

Varsha Patel, 56, the owner of the Royal Inn, along with Nilam Patel, 54, the hotel’s live-in operator, face charges including racketeering, maintaining a drug premises, and money laundering. Four other individuals—Anthony Curtis, 42, Otis Childers, 31, Chauntelle Mills, 24, and Leonardo Guerrero, 49—were charged with drug distribution at the hotel. Guerrero is currently in custody, while arrest warrants were issued for the others.


The indictment alleges that the hotel knowingly rented rooms to individuals involved in prostitution and drug activities, despite repeated warnings from law enforcement. Charges include aiding in racketeering, maintaining a drug premises, and laundering money through illegal activities.

If convicted, the defendants face significant penalties, including up to 20 years in prison and fines reaching $1 million for drug distribution charges.

For more information, contact the U.S. Attorney’s Office for the District of Arizona.