A group led by hospitality company SBE has completed its
$805 million acquisition of Morgans Hotel Group, whose lifestyle brands include
Mondrian and Delano.
With the acquisition, SBE boosts its hotel count to 22 from
nine and will oversee 129 venues, including nightclubs and restaurants.
SBE’s financial partners in the acquisition include Yucaipa
Cos., which is controlled by supermarket magnate Ron Burkle, and Cain Hoy
In October, SBE opened the Redbury New York at what was
previously Martha Washington Hotel as well as the SLS Brickell near downtown
Miami. The Los Angeles-based company is slated to open additional hotels in
Doha, New York, Seattle and Miami next year, and estimates that it will oversee
35 hotels by the end of 2018.
SBE agreed to acquire New York-based Morgans Hotel Group in
May, and Morgans shareholders approved the transaction in late September.
Morgans was founded by Ian Schrager in 1983. Schrager sold his interest in
For the past few years, Morgans had been beset by leadership
turnover and a proxy battle led in part by Burkle.