Morgans Hotel Group sheds one-third of its corporate staff

Morgans Hotel Group eliminated at least one-third of its corporate staff Monday, according to the Wall Street Journal. The company had previously indicated intentions to reduce costs, according to people close to the company, resulting in yesterday's purge.

Over 20 layoffs took place, and among them included top executives and longtime employees. Most areas of the company were affected, from operations to the legal group. According to Hospitality Net, Jason Kalisman, the company's acting CEO and chairman, released a statement last month that the board was looking to "reduce costs and corporate overhead," and had a plan in place for such procedures. 

In recent years, Morgans' CEO has seen pressures from stakeholders and creditors, including private-equity investor Ronald Burkle, to sell the company. However, Morgans has also recently taken steps to reduce calls to find a buyer. Despite a market cap of less than $300 million, the hotelier remains a strong name in the industry. Originally founded by Ian Schrager in the 1980s, Morgans is often credited with introducing the concept of the boutique hotel, which has since grown extremely popular.

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


Just last month, Morgans refinanced its $180 million mortgage loan secured by Hudson in New York and its $100 million revolving credit facility secured by Delano South Beach, according to PYMNTS. The mortgage loan and credit facility were refinanced with nonrecourse mortgage and mezzanine loans with an aggregate principal amount of $450 million, which was fully funded at closing. The new loan is secured by mortgages encumbering Hudson and Delano South Beach and pledges of equity interests in certain subsidiaries of Morgans and matures on February 6, 2016, with three, one-year extension options subject to certain conditions. The loan was provided by Citigroup Global Markets Realty and Bank of America.

Suggested Articles

Kansas-based management and ownership company True North Hotel Group is opening four new hotels within a month.

Radisson Individuals aims to bring independent hotels and local, regional chains into the global Radisson Hotel Group platform.

This role has continued to change with some revenue managers taking on leadership roles within hotel brand and management companies.