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So Long Sahara? SLS Hotels Encounter Some Turbulence

It seems like only yesterday that a nightclub operator and hotelier practically meant the same thing but thanks to the rough economy, it's become very clear to Sam Nazarian that a hotelier has far bigger troubles than a nightclub owner.

The Wall Street Journal took a look behind the scenes at Nazarian's SBE Entertainment company which counts several nightclubs frequented by the brainless cast members of "The Hills," restaurants prominently featured in the background of paparazzi shots, and of course, the SLS Hotels which include The SLS Los Angeles, The Sahara in Las Vegas and the old Ritz Plaza in Miami Beach.

While the SLS Hotel in LA has been generally well-received, especially thanks to its Bazaar restaurant manned by superstar chef Jose Andres, the other two properties are languishing in debt and construction nightmare. And SBE is suffering for it:

In the past 18 months, Mr. Nazarian has cut much of his development team, including architects and designers, and outsourced legal counsel and other services—downsizing his corporate staff nearly in half to around 55 people.

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