The New York Supreme Court on Monday ruled that ASRR Capital, an Israeli company led by Alex Sapir and Rotem Rosen, along with partner Gerard Guez, can take over management of Morgans Hotel Group’s 263-room Mondrian Soho in New York City. The hotel, which Sapir bought out of foreclosure in March for US$205 million, has been rebranded as the Nomo Soho with a transfer of management to Sapir affiliate 9 Crosby Partners planned to take place over the next few weeks.
“We are very pleased that the Court recognized our right to control the destiny of our own business,” said Sapir, ASRR Capital chairman of the board. “This new chapter will be fantastic for all the employees in the hotel and for our guests to be a part of the most exciting new hotel brand launch in New York – Nomo Soho (Nomo is an abbreviation for nostalgic + modern). “We are already in the process of searching for additional properties to grow the brand and will soon be announcing iconic properties in vibrant cities such as Miami and London.”
Graham Leslie, head of hospitality and Nomo Soho’s chief executive, will oversee the hotel’s transformation, property management and re-launch. New amenities, programming and partnerships will be introduced later in the year. The hotel’s restaurant and bar spaces will continue to innovate, with menus continually changing throughout the year.
The Court did not rule on Morgans claim that it is owed a US$110 million fee because of a long-term management contract. In a statement, Morgans said, “While we are disappointed in the court’s decision to order a transfer of operations at Mondrian SoHo, we will continue to pursue our damages claim for willful breach of our management contract.”