Is Morgans Hotel Group’s Merger Deal in Jeopardy?
Photo Credit: The Clift San Francisco was a bright spot in Morgans Hotel Group's otherwise challenging second quarter. Morgans Hotel Group
Skift Take
As Morgans Hotel Group's own SEC filings have shown, it desperately needs to be bought by someone. New revelations suggest that the company’s deal with SBE might be in question.
Morgans Hotel Group reported its second quarter results, and they’re not pretty.
The company reported earnings before interest, taxes, depreciation, and amortization of $11.2 million for the quarter that ended June 30, an 11.4 percent decrease from the same period last year. Revenue per available room for its hotels fell 1.5 percent in the quarter compared to the second quarter of last year. The company said this was attributable to a drop in average daily rate, although it did see a slight bump in occupancy of 1 percent.
The company, which has 13 properties worldwide, is currently in the midst of closing an acquisition by SBE for a transaction worth an estimated $794 million. Shareholders of Morgans Hotel Group are set to vote on the deal September 14, which would have SB
