Morgans Hotel Group Co MHGC.O is to sell its Mondrian Los Angeles hotel to a unit of Pebblebrook Hotel Trust (PEB.N) for $137 million, the latest in the boutique hotel operator's slew of asset sales as it works to pare its debt.
Morgans, which will continue to manage the hotel under a 20-year agreement, expects net proceeds of about $40 million from the sale, after using a part it to repay $103.5 million of the hotel's outstanding mortgage debt.
Earlier this month, the Morgans group said it would sell two mid-town Manhattan hotels to lodging real estate investment trust FelCor Lodging Trust Inc (FCH.N).
Reuters has also reported that the company, which had liabilities of $716.6 million as of Dec 31, has been shopping the Delano in Miami.
Shares of Morgans Hotel closed at $8.35 on Thursday on Nasdaq, while Pebblebrook shares closed at $8.35 on the New York Stock Exchange.
(Reporting by Abhishek Takle in Bangalore; Editing by Saumyadeb Chakrabarty)