SBE Finally Completes Its Purchase of Morgans Hotels

After what seemed like an ongoing ordeal that spanned two years, including a failed first attempt in 2015 and an unsolicited takeover bid that appeared this summer, SBE has finally completed its acquisition of Morgans Hotel Group. The $82-million deal, which is valued at an estimated $805 million, was originally announced in May but had to overcome a variety of challenges related to financing and an unsolicited takeover bid. Most recently, SBE and its partners requested to extend the deadline for the agreement about a month to November 30. Under the terms of the deal, SBE paid $2.25 per share in cash for outstanding shares of Morgans. Morgans' stock closed yesterday at $2.15 a share. With this deal, SBE now has 13 additional hotel management and franchise/licensing agreements, and SBE will take direct ownership of the Delano Hotel in South Beach, Miami, the Hudson Hotel in New York City, and the Clift Hotel in San Francisco. For Morgans, the acquisition comes as welcome news. The hotel compan