Morgans Hotel Group Acquires The James Scottsdale

Effective April 30, the 200-room James Hotel Scottsdale will be sold to the Morgans Hotel Group for $46.5 million. The founders of the hotel—Stephen Hanson, who created B.R. Guest restaurants, and Danny Errico, former CEO and founder of the Equinox Fitness Clubs—are selling the property to focus on the expansion of the James brand. According to Hanson, the Scottsdale hotel did not fit within the portfolio currently being developed in urban locations. The second James hotel is opening in Chicago in March, which will be followed by New York in 2007, Los Angeles in 2008 and additional locations in Miami, Boston and Las Vegas. Brad Wilson, former vice president of operations for W Hotels, will be overseeing the brand expansion as chief operating officer.

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