SBE TO ACQUIRE MORGANS HOTEL GROUP
American hospitality, real estate and entertainment group SBE has entered into a definitive agreement to acquire Morgans Hotel Group. Morgans’ portfolio comprises 13 owned, operated or licensed hotel properties in London, Los Angeles, New York, Miami, San Francisco and Las Vegas, and Istanbul. The transaction, which is expected to close later this year, in the third or fourth quarter, will see SBE acquire all of the outstanding shares of Morgans common stock for US$2.25 per share in cash, which, together with the exchange of Morgans Series A preferred securities, the assumption of debt and transfer of capitalised leases, represents a total enterprise value of approximately US$794 million. Following the deal, SBE’s hotel arm will grow to 20 properties.