Jay-Z backs out on Hotel Venture

By Mr. Hollywood
JR Staff Writer

Three years ago, Jay-Z decided to open up a new business venture with hotels. Since breaking into the rap game, Jay-Z has opened several businesses. He has his own record label and he later created a clothing line to go along with it. In 2007, Jay-Z decided he would also go into the hotel business.

From the beginning, Jay-Z had dreams of being a big time businessman and rap was his way in. Jay-Z teamed up with a few successful businessmen and prepared J Hotels. The hotel was set to be located in the Chelsea district of New York. His partners also built the Urban Glass House in TriBeca.

The plan for the J Hotel was for it to be 12 stories and have an art gallery included. Problems for the hotel began in 2008, only one year into the venture. Jay-Z took out a loan for $52 million and he put $14 million of his own money in the venture. Earlier this year, the property was placed into foreclosure and Jay-Z filed a lawsuit after he lost millions in the venture.

Jay-Z has turned his share in the venture back over, which recovers the $52 million and he was also able to get his $14 million investment back. With the deal going nowhere, Jay-Z needs his money back so he can invest in something that may actually be profitable.