Sam Nazarian’s hospitality company SBE on Monday said it had entered into a joint venture to take over a never-opened boutique hotel on Vine Street in Hollywood. The property was being developed by Avi Brosch, who lost control of it during the downturn.

The joint venture with current property owner CIM Group has SBE operating the five-story hotel at 1717 Vine, plus owning the restaurant and hotel concept, which has yet to be announced.

The distinctive red building originally was intended as an extended-stay hotel called Palihouse Hollywood before Brosch’s Palisades Development ran into financial problems during the economic downturn. CIM Group, Hollywood’s largest commercial landlord, bought the unfinished hotel for less than $16 million earlier this year.

“The 1717 Vine property is at the epicenter of Hollywood, ideally located for both the music industry community, as well as visitors from around the world,” said Nazarian, SBE’s founder and chief executive, in a statement. “At a time when the hospitality industry is undergoing a dynamic change, we’re redefining the hotel suite experience, taking a curatorial approach to blending design elements and amenities that reflect SBE’s signature style and dedication to service.”

Nazarian’s other nightclub, restaurant and hotel properties locally include Gladstone’s in Malibu, multiple Katsuya and Hyde Lounge locations around the city and the SLS Hotel at Beverly Hills.