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Everyone is Watching SLS Hotel (And Should They Be?)

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The Wall Street Journal seems to think that Sam Nazarian's SLS at Beverly Hills, that new hotel at 465 S. La Cienega Boulevard that opened last fall on the site of the former Le Meridien hotel, may be on shaky ground, even if it's not clear that it actually is. Or maybe the WSJ is just covering its bases in case the hotel does run into serious financial trouble. Here's what the paper notes: "The hotel's mortgage, which was carved up into mortgage-backed securities, matures Nov. 9, and Mr. Nazarian is attempting to gain a one-year extension. Because those talks are complex, the mortgage now is being managed by Orix Capital Markets LLC, a special servicer. Orix declined to comment on the negotiations with SBE. Mr. Nazarian insists the Beverly Hills hotel won't default. 'We have options," he said. 'There isn't a gun to our head.'" The Los Angeles Business Journal also has been watching SBE Entertainment (Nazarian's overall company), noting the company canceled plans to build at its Sahara Hotel and Casino in Las Vegas. Back to Los Angeles: Even if that hotel does default, will it even matter given how much money the Nazarian family is said to have?
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