Morgans Hotel Group and the new owners of New York’s
Mondrian SoHo are tussling over management rights of the 263-room boutique
Alex Sapir and Gerard Guez, who acquired the hotel last
month out of foreclosure, said Monday that the hotel has been rebranded as the
Nomo SoHo and that the property was “in the process of transitioning
management.” The new owners also said the hotel would be represented by Preferred
Hotels & Resorts.
Sapir, in a statement issued
Wednesday, said a court hearing on the case was scheduled for next Monday.
“We intend to seek an order
directing Morgans to leave the hotel we own, which we believe they now occupy
unlawfully. When ownership gains control
over its property, as we are confident we will, Nomo SoHo will become one
of the most exciting hotels in NYC and we look forward to opening our doors in
Morgans said Monday that the rebranding process, which it
said culminated in an effort late Sunday night to oust Morgans’ management, was
both premature and illegal. Last month, Morgans CEO Jason Kalisman said it had
filed a lawsuit against the new ownership group in order to prevent the removal
of Morgans’ management.
Morgans said late Monday afternoon
that it was granted a restraining order against the ownership group, which will
at least temporarily prevent any change in management. A representative for Sapir and
Guez, in a statement early Tuesday, referred to the restraining order as “a
temporary delay which we fully expect will be eliminated by the court.”
“Sapir’s actions at Mondrian SoHo are highly irresponsible
and damaging, and show an utter disregard for the rule of law,” Morgans said in
a statement Monday. “Morgans Hotel has a right to seek due process in regards
to the enforcement of the Mondrian SoHo management contract, and Sapir’s
forcible attempt to remove Morgans without a court order is illegal and
unwarranted. To try and do so in the
middle of the night speaks volumes about their character as a business
Sapir and Guez acquired the Mondrian SoHo last month for a
price that wasn’t disclosed, though it was reported at about $200 million. The
hotel opened in 2011.
As of Monday afternoon, the hotel was listed on the Morgans
website, a new Nomo SoHo website and the Preferred Hotels website.
This report was updated Tuesday with the hotel owners' response to the restraining order and Thursday with Sapir's comments on the court hearing.