An Abu Dhabi royal with a taste for celebrity nightlife has been quietly buying up some of Hollywood’s most famous hotspots. Now, he’s set his sights on two more — and been turned down.
The UAE’s national security adviser and deputy ruler of Abu Dhabi, Sheikh Tahnoon bin Zayed Al Nahyan, already runs a string of celebrity-favorite venues through investment vehicles tied to his sprawling business empire. That list includes Delilah, the Bird Streets Club, The Nice Guy, Annabel’s and Sexy Fish — places that regularly play host to the likes of Leonardo DiCaprio.
A person who has direct knowledge of the talks says his spending almost reached further. A hospitality firm tied to the IHC investment empire of Tahnoon, which operates out of Abu Dhabi, recently approached Jeff Klein about purchasing the Sunset Tower Hotel and his San Vicente clubs for $700 million. Klein turned the offer down.
DIAFA’s Growing Portfolio
In September, DIAFA started its purchasing by taking hold of a majority stake in the control of John Terzian and Brian Toll’s h.wood Group. That deal brought Delilah, the Bird Streets Club and The Nice Guy under the sheikh’.
Then, in April, DIAFA acquired a majority stake in British restaurateur Richard Caring’s hospitality empire. That portfolio includes Annabel’s, Sexy Fish, Scott’s and The Ivy.
Tahnoon isn’t just a wealthy investor with a taste for bottle service. He is the brother of the UAE’s president, the country’s national security adviser and deputy ruler of Abu Dhabi. His investment universe extends well beyond IHC: he also chairs the Abu Dhabi Investment Authority and the AI giant G42.
Some of the most star-studded gathering spots in the world now fall under his command, thanks to the purchases.
The Offer Klein Rejected
A person familiar with the talks says DIAFA has put an offer to Klein for the two clubs he owns on Sunset Tower and San Vicente. That offer stands at $700 million.
The figure involved is truly remarkable. When the Sunset Tower came up for sale in 2017, its asking price was $90 million, which was regarded as extremely high at the time, or more than $1 million per room.
The chain now stands as a major enterprise in its own right, with venues in Santa Monica and New York added to the original West Hollywood site. A sum of $700 million would still have marked an extraordinary profit.
Klein turned it down.
According to someone who knows him well, the money was tempting, but he worried that joining the Sunset Tower and San Vicente with a large hospitality company would gradually weaken the exclusivity he had worked for years to build.
Klein himself declined to comment on the offer.
At least for the moment, there are still a couple of velvet ropes that lie outside the sheikh’s grasp.
Timeline of Acquisitions
| Date | Deal | Properties Involved |
|---|---|---|
| September | DIAFA acquires majority stake in h.wood Group | Delilah, Bird Streets Club, The Nice Guy |
| April | DIAFA acquires majority stake in Richard Caring’s empire | Annabel’s, Sexy Fish, Scott’s, The Ivy |
| Recent | DIAFA approaches Jeff Klein with $700M offer | Sunset Tower, San Vicente clubs |
Tahnoon Beyond Nightlife
Tahnoon’s investments go far beyond hospitality. He chairs the Abu Dhabi Investment Authority and the AI giant G42. He is also the brother of the UAE’s president.
Across Los Angeles, the hospitality purchases seem to fit into a larger pattern of acquiring prime properties, with the sheikh’s interests showing particular activity within the Hollywood scene.
The sheikh’s portfolio still does not include the Klein properties. The speculation that began the discussion — that the Sunset Tower and San Vicente could be his next acquisitions — has now been addressed, at least temporarily.
The sheikh now holds a major share of the globe’s most exclusive nightlife. It appears that the red velvet rope has found a new landlord.
As the upscale supermarket chain Erewhon continues to open more stores, it could be required to show calorie counts for its $21 fruit smoothies. The expansion means the company may soon need to start posting nutritional information for those menu items.
The Hollywood Reporter magazine’s Sept. 9 issue is where this piece first appeared. A subscription to the publication is available by clicking here.
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Source: hollywoodreporter.com
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