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US: SBE Entertainment Group has agreed to acquire Morgans Hotel Group after more than a year of merger talks.
US: SBE Entertainment Group has agreed to acquire Morgans Hotel Group after more than a year of merger talks.
SBE is paying $2.25 per share in cash for the outstanding shares of Morgans, according to the two companies. The deal puts an equity value on Morgans of about $82 million, the companies said. The total enterprise value, including assumption of debt, would be about $800 million.
The combined company will own or operate 20 boutique and upscale hotels in cities such as Miami Beach, London and New York, and will include hotel brands including SLS, Delano and Mondrian.
Los Angeles-based SBE is acquiring all the Morgans brands, and ownership of the Hudson hotel in New York and the Delano property in Miami Beach.
SBE will take Morgans private under the terms of the deal, and SBE founder and chief executive Sam Nazarian will be CEO of the combined company.
“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, ” Nazarian said. “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. SBE will leverage best-in-class brands across the combined company, further driving both short- and long-term revenue growth. We are very exited about the opportunities ahead.”
sbe.com
www.morganshotelgroup.com
