Phoenix Motel Owner Sentenced to Probation, Must Forfeit $744K After FBI Probe

The owner of the Royal Inn motel was found to be facilitating drug trafficking and prostitution on the property.

Published on Feb. 19, 2026

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The owner of Phoenix's Royal Inn motel, 57-year-old Varsha Patel, has been sentenced to five years of probation and ordered to forfeit $744,000 as well as the motel property after pleading guilty to using a facility of interstate commerce to aid racketeering enterprises. The FBI and local officials conducted an investigation into alleged criminal activity at the motel, leading to the property being seized and shuttered in 2024.

Why it matters

This case highlights the ongoing challenges communities face in addressing issues of drug trafficking and prostitution, especially when they are enabled by unscrupulous business owners. The closure of the Royal Inn motel was celebrated by residents and local leaders, signaling a victory in the fight against illicit activity that had plagued the neighborhood for years.

The details

In September 2024, FBI agents executed search warrants at the Royal Inn motel as part of an investigation into alleged drug trafficking and prostitution at the property. Following the search, the U.S. Marshals Service shuttered and fenced off the motel. Patel later pleaded guilty to the offense of using a facility of interstate commerce in aid of racketeering enterprises.

  • In September 2024, FBI agents executed search warrants at the Royal Inn motel.
  • In 2024, the U.S. Marshals Service shuttered and fenced off the motel property.

The players

Varsha Patel

The 57-year-old owner of the Royal Inn motel in Phoenix, who pleaded guilty to using a facility of interstate commerce to aid racketeering enterprises.

FBI Phoenix

The local FBI office that conducted the investigation into alleged criminal activity at the Royal Inn motel.

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What they’re saying

“The defendant knowingly and willingly operated the Royal Inn to facilitate the sexual exploitation of people and the sale of drugs. The defendant essentially operated a marketplace of illicit activity and profited for years while turning a blind and uncaring eye to the families that live in that neighborhood. That ended when the FBI seized the hotel, and this defendant will now pay the price for her actions.”

— Heith Janke, FBI Phoenix Special Agent in Charge (12news.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Varsha Patel to be released on probation.

The takeaway

This case highlights the ongoing efforts by law enforcement and community leaders to crack down on illicit activities like drug trafficking and prostitution that can plague local neighborhoods. The forfeiture of the Royal Inn motel and the sentencing of its owner sends a strong message that such criminal enterprises will not be tolerated.