The Real Deal New York

Ace Hotel co-owner claims he’s being cut out of the business

Michael Bisordi says Stefanos Economou is keeping profits for himself
August 04, 2016 09:31AM

The Ace Hotel at 20 West 29th Street in Flatiron (credit: The Ace Hotel)

The Ace Hotel at 20 West 29th Street in Flatiron (credit: The Ace Hotel)

The trendy Ace Hotel is a magnet for hipsters and celebrities — and lawsuits, it seems.

Michael Bisordi, a part-owner of the hotel chain, said he’s been cut out of Ace’s profits for three years since founder Alex Calderwood’s death an apparent drug overdose in 2013. In court documents, Bisordi said he worked closely with Calderwood for 12 years to build up the business.Bisordi’s suit comes on the heels of Calderwood’s father’s suit last year, in which he claimed Ace co-owner Stefanos Economou wasn’t giving Calderwood’s family its rightful stake in the business.

Now, Bisordi, who also runs real estate firm Tungsten Partners, says Economou is driving the business into the ground, and keeping whatever earnings there are for himself and two pals, the New York Post reported. Economou allegedly paid himself $2 million and gave a combined $1.6 million to execs Brad Wilson and Kelly Sawdon.

In addition to its location at 20 West 29th Street in the Flatiron, Ace is expanding throughout the city, including a spot at 225 Bowery, where Omnia Group and North Wind Group are spending $65 million to convert a former Salvation Army soup kitchen into a 10-story, 178-room Ace Hotel. Ace is also reportedly planning a Downtown Brooklyn location, as well, at GFI Capital Resources Group’s 61 Bond Street[NYP] E.B. Solomont