Sunstone Hotel Investors has selected Denihan Hospitality Group to manage The 407-unit Royal Palm Hotel at 1545 Collins Avenue in South Beach. This will be the first entry for the company in the Miami hotel market. The Miami commercial property was sold at auction this summer for $126.1 million and will undergo renovations aimed at a 2011 reopening. Denihan manages 14 properties in four cities under the James and Affinia brands.