Sam Nazarian’s SBE Entertainment Group has agreed to buy Morgans Hotel Group in an all-cash deal worth $794M.
As part of the proposed deal, SBE would pay $2.25 for each outstanding share. Morgans Hotel Group, based in New York, has been credited with launching boutique hotels.
The company and SBE Entertainment Group have been in talks for the past year, according to GlobeSt.
The deal includes the ownership of Morgans’ brands and 13 domestic and international hotel management agreements as well as outright ownership of the hotelier’s three owned properties: the 372-key Clift Hotel in San Francisco, the 878-key Hudson Hotel in New York City and the 194-key Delano Hotel in South Beach in Miami.
SBE will get an investment from Cain Hoy Enterprises to help fund the purchase.
The Yucaipa Cos will convert its stake in Morgans Hotel Group into an ownership interest in SBE. [GS]
