SBE Acquires Morgans Hotel Group for $794 Million

SBE Entertainment Group has agreed to acquire Morgans Hotel Group. Shareholders, representing close to 30 percent of Morgans’ outstanding common stock shares, as well as the company’s board of directors issued their approval of the transaction. Anticipated to close in the third or fourth quarter this year, SBE will pay $2.25 in cash per share, which values the deal, including assumption of debt, at $794 million.

“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,” says Morgans’ chairman Howard M. Lorber.

SBE will obtain Morgans’ 13-hotel portfolio across three countries, and is pursuing the leases of the three Las Vegas restaurants currently held by Morgans, which was founded by Ian Schrager and Steve Rubell. The lifestyle hospitality company is also working with lenders to assume the mortgages of Morgans’ Hudson New York and Delano South Beach properties. The combined company, to be helmed by SBE founder and CEO Sam Nazarian, will own or operate 20 boutique and upscale hotels, including brands such as SLS, Delano, and Mondrian.

Delano Miami