Morgans Hotel Group Announces Additional Funding To Complete Development of Mondrian in SoHo (United States)
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Morgans Hotel Group Announces Additional Funding To Complete Development of Mondrian in SoHo (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy -
Hotel projects
This is a press release selected by our editorial committee and published online for free on 2010-08-04
Loan Maturity Successfully Extended Downtown NYC Debut Scheduled for January 2011
Morgans Hotel Group Co. (NASDAQ:MHGC) ("MHG") today announced that the joint venture developing a Mondrian in SoHo has procured additional funding to complete development of the hotel. The new hotel is expected to open in January 2011 with a restaurant, bar, and other facilities. MHG has a 10-year management contract with two 10-year extension options to operate the hotel upon completion.
MHG also announced that the parties amended the debt financing on the property, among other things, to provide for extensions of the maturity date of the mortgage loan secured by the hotel for up to five years with extension options, subject to certain conditions.
In addition to the new funds provided by the lender, subsidiaries of CapitalSource Inc., MHG's financial and developer partner in the joint venture, Cape Advisors, is making cash and other contributions to the joint venture, and MHG will provide up to $3.2 million of additional funds to complete the project. MHG's contribution will be treated as a loan with priority over the equity.
Marc Gordon, President of MHG said, "The additional funding allows us and our partner to focus our attention and resources on completing this spectacular new hotel in downtown New York. We appreciate the support of CapitalSource, which recognized the strong appeal and long-term value of this hotel, and our unique ability to maximize its potential."
Mondrian in SoHo will be the third Mondrian and MHG's downtown New York debut. Designed by Benjamin Noriega Ortiz and located on a cobblestone street, the hotel will present a unique SoHo style and hotel experience. As one of the tallest buildings in its area, it will offer exceptional panoramic views. Chef Sam Talbot will introduce his interpretation of modern day east coast seafood, and the bar will offer a selection of custom-designed cocktails.
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