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Sam Nazarian
American businessman From Wikipedia, the free encyclopedia
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Sam Nazarian (Persian: سام نظریان; born 1975) is an American businessman, investor, and philanthropist. He is the founder, chairman, and CEO of SBE Entertainment Group, a lifestyle hospitality company that develops, manages, and operates hotels, restaurants, and nightclubs globally. In 2023, Nazarian expanded his ventures by launching HQ Hotels & Residences, a hospitality brand in alliance with Wyndham Hotels & Resorts.[1]
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Early life and education
Nazarian was born into a Persian Jewish family in Tehran, Iran, in 1975. Following the Iranian Revolution, his family immigrated to the United States, settling in Beverly Hills, California. He is the son of Younes Nazarian, an early investor in Qualcomm. Nazarian attended Beverly Hills High School, graduating in 1993, and later studied at the University of Southern California. In recognition of his support, the Beverly Hills High School basketball court was renamed Sam Nazarian Court after he donated $200,000 to the Beverly Hills Athletic Alumni Association.[2]
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Business career
In 1998, Nazarian founded Platinum Wireless, a telecommunications company specializing in the distribution of Nextel products. After selling the company in 2001, he ventured into real estate with his father, establishing 3Wall Development in 1999. In 2002, he founded SBE Entertainment Group, focusing on hospitality ventures.[3]
Under Nazarian's leadership, SBE expanded to include brands such as SLS Hotels, Hyde Lounge, and Katsuya. In 2020, he sold the remaining 50% stake of SBE's hotel platform to Accor Hotels but retained its food and beverage operations.[4]
In 2023, Nazarian re-entered the hotel industry by launching HQ Hotels & Residences through an alliance with Wyndham Hotels & Resorts. This initiative focuses on hospitality experiences through dining, nightlife, and wellness.[5]
The first HQ Hotels & Residences locations are planned in Montreux, Switzerland, and Detroit, Michigan. The Montreux property, The HQ Montreux Hotel & Spa, will feature 155 rooms and 42 residences. The Detroit property, HQ Detroit Hotel & Spa, will offer 174 guestrooms.[6]
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Monetary and legal difficulties
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Regulatory and Licensing Challenges
In December 2014, Sam Nazarian faced scrutiny from the Nevada Gaming Control Board during his bid for a gaming license related to his ownership of the SLS Las Vegas hotel and casino. The investigation revealed Nazarian had used cocaine during a trip to Mexico and made approximately \$3 million in payments to convicted felon Derrick "Smokey" Armstrong, whom Nazarian described as an extortionist.[7] Some of these payments were allegedly funneled through associates including Suge Knight and Hai Waknine.[8] As a result, Nazarian was granted only a one-year limited gaming license, which required him to submit to random drug testing and removed him from daily casino operations. Operational control of the SLS was transferred to Stockbridge Capital, though Nazarian retained a 10% stake.[9]
Misconduct Allegations and Extortion Payments
The Nevada investigation also uncovered that Nazarian had paid around \$3 million to Armstrong and his affiliates over several years, which Nazarian claimed were extortion payments made under duress. He reported Armstrong to Los Angeles police but continued making payments due to fear and reputational concerns.[10] Armstrong denied the extortion claims and maintained he was a legitimate business partner.
Lawsuits and Financial Disputes
In 2015, a group of investors sued Nazarian over an \$8 million investment in the SLS South Beach hotel in Miami, alleging financial misrepresentation and breach of fiduciary duty.[11] A Los Angeles judge found evidence suggesting Nazarian had structured the deal to favor himself and a new partner at the expense of earlier investors. That same year, he was also sued over unpaid storage fees for a Ferrari, a case Nazarian disputed, claiming he never owned the vehicle.[12]
Partner Conflicts and Withdrawals
In 2015, Nazarian's company SBE was removed from a major Frank Gehry-designed development in downtown Los Angeles. The project's lead developer, Related Companies, severed ties with SBE following public revelations from the gaming board hearing.[13] Additionally, Stockbridge Capital bought out Nazarian’s remaining interest in SLS Las Vegas after the property posted an \$84 million loss in the first half of 2015.[14]
Failed and Fraudulent Ventures
Nazarian’s SLS Las Vegas venture ultimately failed and was later sold and rebranded. Separately, in 2015, Nazarian partnered with developer Serena Shi for a proposed resort in Coachella, California. The project was later revealed to be fraudulent, and Shi was convicted of wire fraud in 2021 after diverting investor funds for personal use.[15] Nazarian and SBE were not accused of wrongdoing, but their involvement lent the scheme an air of legitimacy.
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Film production
Nazarian has been involved in film production as an executive producer. His credits include Waiting..., Down in the Valley, Five Fingers, The Last Time, Mr. Brooks, and College.[16]
Board memberships and recognitions
From 2008 to 2011, Nazarian served on the board of trustees of the Southern California Institute of Architecture. In July 2009, Los Angeles Mayor Antonio Villaraigosa appointed him to the Board of Airport Commissioners of Los Angeles World Airports. In 2014, Nazarian was named to Fortune's 40 Under 40 list.[17]
Personal life
Nazarian is married to American model Emina Cunmulaj. The couple has been involved in philanthropic efforts.[18]
References
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