By the Caribbean Journal staff
In what is one of the highest-profile hotel deals all year, Morgans Hotel Group has announced that it has entered into an agreement to be acquired by global hospitality company SBE.
SBE will acquire Morgans’ portfolio of 12 properties, and is currently working with lenders to assume the mortgages of the Hudson and Delano hotels in New York and Miami, respectively.
SBE is planning a major expansion in Mexico, with five resort management deals planned.
“Morgans’ Board of Directors carefully considered all of the alternatives available to us and we are pleased to have arrived at a transaction that we believe is in the best interests of our shareholders, while providing a great home for our attractive assets under a renowned hospitality company in SBE,” said Howard Lorber, chairman of Morgans.
SBE had been slated to open a hotel at the now-troubled Baha Mar in the Bahamas, although the fate of that project and its hotels is unclear.