US entrepreneur buys Morgans Hotel Group for $82m

Together, the combined company will operate 20 boutique and upscale hotels in nine markets with a combined value of around $800m.

The deal includes Morgan’s three London properties The Sanderson in the West End, St Martins Lane in Covent Garden, and The Mondrian Hotel at Sea Containers House​ on the South bank.

Nazarian will serve as CEO of the combined company and handle day-to-day management responsibilities.

Los Angeles-based SBE – which also owns the SLS and Redbury hotel brands – is already expanding its hotel portfolio with 19 new developments scheduled to open throughout 2019.

In addition, SBE is expecting to launch four US hotels and one in Doha, Qatar, by the end of 2016.  

Nazarian said: “We are very excited about the opportunities ahead. SBE will leverage best-in-class brands across the combined company, further driving both short and long-term revenue growth."

Morgans Hotel Group was founded in 1984 by Ian Schrager and Steve Rubell, the creators of iconic New York nightclub Studio 54.

The brand was widely credited as the creating of the first boutique hotel, but has suffered financial losses in recent years due to increased competition from major hotel chains entering the boutique sector.

SBE, founded by Nazarian in 2002, currently has more than 100 restaurants, hotels and nightclubs operating or in development.