Morgans Hotel Group Eliminates $10.5 Million of Consolidated Debt (United States)
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Morgans Hotel Group Eliminates $10.5 Million of Consolidated Debt (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy -
Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2011-01-17
Morgans Hotel Group Co. (Nasdaq: MHGC) ("MHG") announced today that it has transferred its interests in the property across the street from Delano in South Beach to SU Gale Properties, LLC. As a result of this transaction, MHG is relieved of $10.5 million of non-recourse mortgage and mezzanine indebtedness that was previously consolidated on its balance sheet. The property across the street from Delano in South Beach was a development property with no operations and generated no Earnings before Interest Tax, Depreciation and Amortization ("EBITDA") during 2010. The transfer is not expected to result in a material gain or loss.
About Morgans Hotel Group
Morgans Hotel Group Co. (Nasdaq: MHGC) is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion in various locations around the world.
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