Key Developments: Morgans Hotel Group Co (MHGC.W)
6.99USD
17 May 2013
$0.82 (+13.29%)
$6.17
$7.00
$7.00
$6.93
1,000
289
$7.00
$3.87
Latest Key Developments (Source: Significant Developments)
Morgans Hotel Group Co Raises FY 2013 RevPAR Guidance-Conference Call
Morgans Hotel Group Co announced that for fiscal 2013, based on the trends the Company is seeing in markets, the Company is increasing its projected RevPAR growth at systemwide comparable hotels to 8% to 10% from the original forecast of 6% to 8%. Full Article
Morgans Hotel Group Co Announces $100 Million Rights Offering
Morgans Hotel Group Co announced a $100 million rights offering to stockholders and other equity holders at a subscription price of $6.00 per share of common stock. The rights offering is being conducted in connection with the Company's recently announced transaction with The Yucaipa Companies, the culmination of a 15-month exploration process by a Special Committee of the Board to review strategic alternatives. Yucaipa has agreed to backstop the rights offering at no-fee by purchasing, on the same terms, any and all shares not subscribed for in the rights offering. The proceeds of the rights offering will be used to retire the credit facility secured by Delano South Beach, which currently has $35 million of outstanding obligations, and the remaining $65 million will be used to fund expansion of the business and for general corporate purposes. Under the terms of the rights offering, the Company will distribute at no charge to the holders of common stock and other equity holders transferable rights to purchase up to an aggregate of 16,666,666 shares of common stock. The Company will distribute to each such holder one transferable right for every share of common stock or membership unit, as applicable, owned on April 11, 2013, the record date for the rights offering. Each right will entitle the holder to purchase approximately 0.50 shares of common stock at the subscription price of $6.00 per share of common stock. Full Article
Morgans Hotel Group Co. Issues FY 2012 RevPAR Guidance
Morgans Hotel Group Co. announced that for fiscal 2012, it expects 6% to 8% RevPAR increase at System-Wide Comparable Hotels, excluding hotels which were impacted by non-room renovations during the year, and a 5% to 7% increase in RevPAR including these hotels. Full Article
Morgans Hotel Group Co. Wins Long-Term Management Agreement
Morgans Hotel Group Co. announced that it has entered into a hotel management agreement for an approximately 360-room Mondrian-branded hotel to be located at Sea Containers on the South Bank of the River Thames in London . This hotel is expected to be the sixth Mondrian hotel in the expansion of the Company's iconic brand and the first Mondrian hotel in Europe. Upon completion and opening of the hotel, Morgans will operate the hotel pursuant to a 25-year management agreement, with two 10-year extension options. The hotel is scheduled to open in early 2014. Full Article
Morgans Hotel Group Co. Closes on Purchase of The Light Group
Morgans Hotel Group Co. announced that it has closed on its purchase of a 90% controlling interest in The Light Group ("TLG"), a leading lifestyle food and beverage company currently operating numerous venues for MGM Resorts International ("MGM"). This acquisition, while being immediately accretive to the Company's earnings, also provides Morgans with a first class food and beverage platform, a creative and experienced management team, and renowned brand names. Total consideration for the acquisition is approximately $46.5 million , of which $28.5 million was paid in cash. The remaining $18.0 million is subject to the achievement of $18.0 million of EBITDA from TLG's existing business over the 27 months subsequent to the transactions' closing and is represented by convertible notes that bear interest at 8%, mature four years from the date of closing and are convertible into shares of the Company at $9.50 per share. Full Article
Morgans Hotel Group Co. Closes Sale Of London Hotels
Morgans Hotel Group Co. announced that the joint venture partners have closed on the sale of the Sanderson and St Martins Lane hotels to Capital Hill Hotels Limited, a Middle Eastern investor with other global hotel holdings. The sale price for the two hotels is 192 million pounds Sterling , or approximately $300 million and represents a value of approximately GBP542,000, or $847,000 per room. Morgans' 50% portion of the net proceeds, after the repayment of debt and closing costs, is approximately $73 million . The Company intends to use the net proceeds to fund the acquisition of The Light Group as well as renovations at existing hotels and growth. Full Article
Morgans Hotel Group Co. To Acquire The Light Group
Morgans Hotel Group Co. announced that it has entered into a definitive agreement to purchase a 90% controlling interest in The Light Group (TLG), a lifestyle food and beverage company operating numerous venues for MGM Resorts International (MGM). This acquisition, while being immediately accretive to the Company's earnings, also provides Morgans with a first class food and beverage platform, a creative and experienced management team, and renowned brand names. Total consideration for the acquisition is approximately $46.5 million, of which $28.5 million will be paid in cash at the close of the transaction. The remaining $18.0 million is subject to the achievement of $18.0 million of EBITDA from TLG's existing business over the 27 months subsequent to the transactions' closing and is represented by a convertible note that bears interest at 8%, matures four years from the date of closing and is convertible into shares of the Company at $9.50 per share. As part of the transaction, Andrew Sasson, the founder and chairman of TLG, will join the Company's board of directors. Andy Masi will remain as TLG's Chief Executive Officer. The transaction is expected to close in the fourth quarter of 2011, and is subject to customary closing conditions. Full Article
Morgans Hotel Group Co. Increases FY 2011 RevPAR Guidance
Morgans Hotel Group Co. announced that for fiscal 2011, it expects RevPAR increase at System-Wide Comparable Hotels to be 8% to 10%, above previous range of 7% to 9%. Full Article
Morgans Hotel Group Co. And St Martins Lane To Sell London Hotels
Morgans Hotel Group Co. the operator and 50% owner of the London joint venture that owns Sanderson and St Martins Lane, announced that the joint venture partners have entered into a definitive agreement to sell the Sanderson and St Martins Lane hotels for 192 million pounds Sterling, or approximately $295 million, to Capital Hill Hotels Limited, a Middle Eastern investor with other global hotel holdings. The sales price for the two hotels represents a value of approximately 542,000 pounds, or $832,000, per room. MHG will continue to operate the hotels under long-term management agreements. The terms of the management agreements, including extension options, have been extended to 2041 from 2027. The joint venture partners will use the sales proceeds, along with cash in escrow, to retire the approximately 99.5 million pounds of outstanding mortgage debt, which is secured by the two hotels. MHG's 50% portion of the net proceeds, after the repayment of debt and closing costs, is expected to be approximately $70 million. The Company intends to use the net proceeds to provide capital for growth. The transaction is expected to close in the fourth quarter. The joint venture partners received a 10 million pounds security deposit, which is non-refundable, except in the event of a default by the joint venture. Full Article
Morgans Hotel Group Co. Sees FY 2011 RevPAR Guidance At High End Of Prior Guidance
Morgans Hotel Group Co. announced that for fiscal 2011, it expects RevPAR increase at System-Wide Comparable Hotels to be at the high-end of previous guidance of an increase of 7% to 9%. Full Article
Morgans Hotel says twice rejected buyout bids from large hotel group
- Morgans Hotel Group Co , in the midst of a proxy battle and facing investor opposition to a deal with Ron Burkle-controlled Yucaipa Companies, said it had rejected two takeover bids from a large international hotel company in the past six months.
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