Shares in Morgans Hotel Group Co were up 10% after it agreed to be purchased by SBE in a deal worth about $800 million.
The purchase price for Morgan’s, which operates properties such as the Mondrian in Los Angeles and Royalton in New York, is at a premium of 69% on last week’s closing share price.
"We carefully considered all of the alternatives available to us, and we are pleased to have arrived at a transaction that we believe is in the best interests of our shareholders, while providing a great home for our attractive assets under a renowned hospitality company in SBE," said Morgans chairman Howard Lorber in a statement.
New York-based Morgans announced intentions to seek a strategic partner or a sale of its assets last year, and was close to a merger with SBE at one point.
Sam Nazarian’s SBE, owner of the SLS, Hyde and Redbury hotel brands, will then have a portfolio of 20 hotels and about 90 restaurants when the deal completes.
"Our strategic vision is to operate these amazing and unique lifestyle properties in key international gateway markets," Nazarian said in a statement.
