Now that Alex Sapir and Rotem Rosen have finalized their $205 Million acquisition of Manhattan’s famed Mondrian Soho Hotel, the two investors have had another victory there. The duo won a court ruling ousting Jason Kalisman’s Morgans Hotel Group from its long term contract for operating the luxury hotel.
After a prolonged battle a New York judge finally ruled that Sapir and Rotem can break Morgans’ contract. Both sides have until May 1st to present a plan for an orderly transfer from Morgans to Rosen’s Israeli firm ASRR management.
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The dispute got ugly when Morgans’ people at the hotel called the police on April 9th after a team from ASRR showed up at there and attempted to take over management.
Morgans expressed its disappointment with the ruling in a statement which read, “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 German American Capital Corporation and Sapir’s willful breach of our management contract.
“We will also work with all parties to ensure an orderly transfer on a negotiated date to ensure there is no impact to our most important assets, our guests and employees. Morgans Hotel Group remains focused on growing its brand and management business through the expansion of its core brands: Delano, Mondrian, Hudson and Originals at the most unique and exciting destinations around the world.”
ASRR was obviously happy and released a statement of its own. “We are very pleased that the Court recognized our right to control the destiny of our own business, ” said Alex 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. We are already in the process of adding additional properties to grow the brand and will soon be announcing iconic properties in vibrant cities such as Miami and London.”
Located at 9 Crosby Street in Manhattan’s Soho neighborhood, the Mondrian Soho hotel has 270 rooms. Its services include a 24 hour concierge, a 24 hour front desk, a 24 hour gym, a restaurant and a Bar. It is one of three hotels of that name including one in Los Angeles.