Real estate developer Mohamed Hadid, who has been riding a financial roller-coaster, said yesterday that he signed a contract to buy the Omni Shoreham Hotel for an undisclosed price and plans to spend more than $100,000 per room on renovations.
"We will bring it back to the glories of what the Shoreham Hotel should be," Hadid said. "We intend to make it the best hotel in Washington."
The Shoreham, which overlooks Rock Creek Park at 2500 Calvert St. NW, is one of Washington's large convention hotels. Hadid said he plans to transform it into "a luxury, five-star convention hotel."
Hadid said he will complete the purchase of the 769-room hotel from a partnership of Chicago-based VMS Realty in about 90 days. He said he is buying the hotel with a British partner and a Japanese partner, whom he declined to identify.
Hadid said he and his partners would borrow 65 percent to 70 percent of the purchase price from an overseas bank and pay for the rest with their own money. He declined to say how much of his own money he would put into the deal.
A spokesman for VMS Realty did not respond to inquiries about the deal yesterday.
Earlier this year, with creditors on his heels, Hadid was scrambling to hold on to Pokety, his estate on Maryland's Eastern Shore, and the furnishings of his Aspen, Colo., home. But yesterday, Hadid said he had put his financial troubles behind him. "We are back in business," he said.
Once a car salesman, Hadid developed office buildings in the Washington area and then branched into the hotel business. His holdings include the Ritz-Carlton hotels in Washington, New York and Houston. He is developing a Ritz-Carlton resort hotel near the ski slopes in Aspen, and plans to build Ritz-Carltons in Tunis, Morocco and Cairo, among other cities, he said.
Hadid said he will be talking to various hotel management companies about managing the Shoreham.