Asia de Cuba restaurant to close

Asia de Cuba will close in October. Earlier this summer, The Morgans Hotel (which houses ADC) bought out the remaining 50% of the company's interests from China Grill Management to the tune of $20 million. They will fill the space with another project, but they have not yet confirmed that it will be a restaurant.

In May, Morgans Hotel bought out the remaining 50% of the company's interests from partner China Grill Management, owned by Jeffrey Chodorow, for $20 million. Mr. Chodorow is holding on to the Asia de Cuba brand, which also has restaurants in Los Angeles, Miami and London. China Grill Management is also the team behind Bar Basque and CarteBlanche.

Representatives from China Grill Management did not return phone calls.

Hotel industry experts say the 98 employees at Asia de Cuba have union agreements that may make it difficult for a restaurant not owned by the hotel to be profitable. Morgans Hotel Group CEO Michael Gross previously told Crain's that Morgans Hotel eventually wanted to run its own restaurant. (Digital subscription required.)

Further, the restaurant is facing increasing competition for hot chefs such as Asia de Cuba Executive Chef John DiLeo. Mr. DiLeo has worked at three China Grill Management restaurants—Hudson Cafeteria, Tanuki Tavern and Asia de Cuba—after spending over a decade and a half as an executive chef elsewhere. Elsewhere, The Mark hotel opened its Mark Restaurant by Jean-Georges after completing renovations last year.

Asia de Cuba, at 237 Madison Ave. between East 37th and East 38th streets, has been in the hotel since it opened in 1984. It has a celebrity clientele that includes Kyle Minogue, Lady Gaga and Maggie Gyllenhaal.