By Jacquelynn D. Powers, Photographs: Francis & Francis

t's not easy taking over a legendary property (Hard Rock Hotel & Casino) from an equally renowned owner (Peter Morton). But entrepreneur Ed Scheetz and his Morgans Hotel Group have proven they are more than up for the challenge since purchasing the hotel last year. Since the official hand-over (February 2nd, 2007), the Hard Rock has been as raucous as ever. The 20- and 30-something denizens of the rock 'n' roll-themed hotel are still partying with unrivaled tenacity to acts that include Lily Allen, INXS, Snoop Dogg and Incubus. Nobu continues to attract starlets such as Paris Hilton, Kelly Osbourne and Nicole Richie. And room rates are actually rising, while the suites are being upgraded to socialite standards. Of course, Morgans Hotel Group specializes in hip boutique hotels. Actually, the company created that genre in 1984 when Studio 54 impresarios Ian Schrager and Steve Rubell debuted their first accommodation, Morgans Hotel in New York City, to wide acclaim. In the ensuing years, Schrager (minus Rubell, who passed away in 1989) brought his fanciful vision and design to chic destinations such as South Beach and Los Angeles with the Delano (1995) and Mondrian (1996). Additional avant-garde properties in New York, London and San Francisco followed. In 2005, Schrager left the fold for a new adventure in upscale tourism, Gramercy Park Hotel. Subsequently, Ed Scheetz, a real-estate guru and longtime financier of Schrager's projects, took over as president and CEO of Morgans Hotel Group. In 2006, Morgans Hotel Group held an IPO that raised $300 million for growth.

In his new position, Scheetz, 42, targeted Las Vegas as the next destination for his burgeoning hotel chain. Soon, Ed announced a deal with Boyd Gaming Corporation for Echelon, a CityCenter-style development on the north end of the Strip. For Echelon, Morgans Hotel Group is re-creating two of its most prestigious properties, Mondrian and Delano, and commissioned high-profile architects Chad Oppenheim and Klai Juba for the project. When Echelon debuts in 2010, MHG will be responsible for 1,400 rooms. While Echelon was a major coup for the company, Scheetz wanted to enter the Vegas market immediately. Upon hearing that the Hard Rock Hotel was for sale in 2006, Ed set out to procure the boisterous off-Strip hotel. "It was a once-in-a-lifetime opportunity," he says. "The Hard Rock was the original boutique hotel in Vegas and still had a very strong reputation, even though there were some things it could do better. I jumped on that aggressively." Scheetz was very familiar with the hotel. While Ed was financing the construction of the Delano in Miami in 1994, Peter Morton was building the Hard Rock in Las Vegas. In 1997, Ed negotiated with Morton to buy the property, to no avail. "It's an asset I've known for a long time," Scheetz explains. "There were similar ideas between the Delano and Hard Rock. Peter built it his way; we obviously did it our way. But while the Delano went from being one of the cheapest properties in Miami to one of the most expensive, Peter's property did not evolve like that. It hadn't evolved with Vegas or the hospitality industry. I have tremendous respect for Peter. He achieved something there and elsewhere in his career that was pretty spectacular. No disrespect at all when I say we can do better. He would agree. There is a real opportunity to take it to the next level. We are upgrading everything around the property, which has brought a renewed energy."

The much hyped expansion of the Hard Rock is happening in two steps. The first phase, a mini enhancement, includes a lounge by motocross star Carey Hart (called Wasted Space), poker room, suite upgrades, and enlarging and replacing the property's restaurants. (While Nobu is definitely staying, the fate of Simon Kitchen and Bar and AJ's Steakhouse is less certain.) These renovations will begin in the fall and be completed next spring. More impressive is the second stage, also starting in the fall, which adds two towers, 60,000 square feet of meeting space, and a new Joint, with capacity for 5,000 revelers. The North Tower will be built near the garage, while the 15-story South Tower will be an all-suite structure with its own entrance, spa, nightclub, restaurants, pool and bungalows. Amy Sacco, of Bungalow 8 fame, will be in charge of the cool factor at the pool, spa and nightclub. "The VIP Tower is for people who want to spend a little more and be separate from the craziness," notes Scheetz. "But you're still part of the whole Hard Rock experience."

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