Schrager in Hot Water
Drama has landed in South Beach.
Hotelier Ian Schrager and his company is being sued for $15 million by the owners of the Shore Club Hotel, Philips South Beach LLC. They claim that Schrager's company, Morgans Hotel Group Management, stole from the Shore Club while they were managing it, and put the money into the Morgan property, the Delano Hotel.
Besides canceling guests' Shore Club reservations and then sending the guests to the Delano, court papers say, Morgans also used the Shore Club to house and feed Delano employees and pay for food, laundry and other personal expenses. The lawsuit says Schrager charged expenses associated with his private jet to the Shore Club.
Interestingly enough, according to TripAdvisor, the Delano Hotel averages four-and-a-half stars, while the Shore Club has three stars. And Delano Hotel is ranked #30, while the Shore Club is #63.
Not that any of this would hold up in court or anything.