Morgans Hotel Group to Sell Its London Hotels

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  1. uggboy
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    NEW YORK, Oct. 10, 2011 /PRNewswire via COMTEX/ -- Morgans Hotel Group Co. MHGC +4.40% ("MHG" or the "Company"), the operator and 50% owner of the London joint venture that owns Sanderson and St Martins Lane, today announced that the joint venture partners have entered into a definitive agreement to sell the Sanderson and St Martins Lane hotels for 192 million pounds Sterling, or approximately $295 million, to Capital Hill Hotels Limited, a Middle Eastern investor with other global hotel holdings. The sales price for the two hotels represents a value of approximately 542,000 pounds, or $832,000, per room.

    MHG will continue to operate the hotels under long-term management agreements. The terms of the management agreements, including extension options, have been extended to 2041 from 2027.


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