Morgans Hotel Group and the new owners of New York’s Mondrian SoHo are tussling over management rights of the 263-room boutique hotel.

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 Soho.”

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 partner.”

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.
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This report was updated Tuesday with the hotel owners' response to the restraining order and Thursday with Sapir's comments on the court hearing.

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