Los Angeles-based SBE Entertainment Group has agreed to acquire Morgans Hotel Group Co. — operator of the Mondrian in West Hollywood — in a deal worth about $800 million, it was announced Monday.
“We have long admired Morgans, its impressive history and culture of service and innovation, so we’re delighted to reach an agreement on this transaction,” said SBE founder and CEO Sam Nazarian
“Our strategic vision is to operate these amazing and unique lifestyle properties in key international gateway markets, and Morgans’ hotels, along with their talented team, fit perfectly within that vision,” he said.
Morgans manages the Mondrian and eight other high-end hotels. The newly combined company will own or operate 20 upscale hotels in San Francisco, Miami Beach, New York and elsewhere.
SBE is paying $2.25 per share in cash for the outstanding shares of Morgans, according to media reports that put an equity value on Morgans of about $82 million. The total enterprise value, including assumption of debt, would be about $800 million, a spokesperson confirmed.
— City News Service