Following two years of financial losses, leadership turnover and shareholder battles, Morgans Hotel Group – which owns the Delano, Mondrian and Hudson Hotel brands – may be close to being sold.
The Real Deal notes that as far back as 2013, executives said they were pursuing “strategic alternatives” for the company. But a series of recent changes at the top illustrates a new push to sell. In late May, interim CEO Jason Kalisman, the grandson of real estate giant Alfred Taubman, resigned from his post as interim CEO. At that time, Vector Group chair Howard Lorber, who sat on the board, was tapped as Chairman, and CFO Richard Szymanski took on Kalisman’s duties. Earlier in the month, Morgans also tapped former Goldman Sachs real estate exec Jonathan Langer, a former board member, to work as a consultant to the board’s Special Transaction Committee. “
But as the story notes, a potential deal isn’t likely to close before August, however, since Morgans currently holds a mortgage loan backed by the Hudson Hotel in New York and the Delano South Beach. The loan doesn’t mature until next year, but it has a prepayment penalty through August 9.