Hotel Mogul Feeling The Pinch of Sluggish Market

Sam Nazarian, pictured with Paris and Nicky Hilton.

via wsj

Sam Nazarian is the man behind popular L.A. celebrity nightspots like Area, MI-6 and Hyde Lounge. Generally he has the ability to select the right property and give it the panache it needs to draw an exclusive jet-set crowd.

While this may be true most of the time of Nazarian and his company, SBE Entertainment, it's not true right now. The WSJ reports of multiple projects that have stalled during various phases of development and a downsizing of corporate staff that sees half of his people being reduced.

These things are understandable, but, they don't help the bottom line. Speaking of which, he also has some debt tied to mortgaged -backed securities and he's trying to restructure the mortgage on one of his properties in Vegas. If you recall a post I wrote a few weeks ago, hotel rooms were going for $21-$40 a night on the Vegas strip.

Read more to see why he just may be able to recover...