The deal was arranged by Sonnenblick-Goldman Co. on behalf ofMorgans Hotel Group, formerly known as Ian Schrager Hotels. Morganshas interests in and manages 10 hotels with approximately 3,000guestrooms.

According to Sonnenblick-Goldman managing director and principalMark J. Gordon, the sale was "the perfect opportunity for Hard RockHotels because it enables them to establish a flagship presence inan ideal location." Sonnenblick-Goldman's transaction team for theassignment included Gordon and Mark K. Owens, senior associate.

Lifestar is a joint venture between Hard Rock Cafe Internationaland Sol Meliá SA. It provides hotel owners a unique proposition toaccess the Hard Rock Hotel brand through long-term managementagreements. New York will be the third Hard Rock Hotel to be partof the joint venture since its formation in 2003. The others arethe recently opened Chicago hotel and and a San Diego one scheduledto open in 2006. Hard Rock Cafe International has a network of morethan 115 signature Hard Rock Cafes in 44 countries.