Dispute over management of Mondrian SoHo

US: Morgans Hotel Group has been granted a restraining order against the new owners of the Mondrian SoHo in New York.

US: Morgans Hotel Group has been granted a restraining order against the new owners of the Mondrian SoHo in New York.

The new owners, Alex Sapir and Gerard Guez, who acquired the hotel last monthout of foreclosure, say the hotel has been rebranded as the Nomo SoHo (an abbreviation of nostalgic and modern) and that the property was “in the process of transitioning management.” The new owners also said the 263-room hotel would be represented by Preferred Hotels & Resorts.

Morgans countered by saying that the rebranding process was both premature and illegal, and that it has been granted a restraining order against the ownership group, which will temporarily prevent any change in management.

Morgans said in a statement: “Sapir’s actions at Mondrian SoHo are highly irresponsible and damaging, and show an utter disregard for the rule of law. Morgans Hotel Group 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.”

The new ownership group responded by saying: “We believe this is a temporary delay which we fully expect will be corrected by the court. We will spend the coming days preparing to assume our proper and legal operation of the new NOMO SOHO. It is unfortunate that Morgans Hotel Group has decided to delay the inevitable outcome.”

www.morganshotelgroup.com/mondrian/mondrian-soho
www.nomosoho.com

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