What a difference a few months make. Last November, merger discussions between Morgans Hotel Group and SBE Entertainment Group collapsed. But just yesterday it was announced that Morgans Hotel Group agreed to be purchased by Sam Nazarian’s SBE for $2.25 a share in cash—a per-share price 69 percent higher than Morgans’ May 5 closing price. The total enterprise is valued at about $794 million. SBE, with the SLS, Hyde, and Redbury hotels under its umbrella, will acquire all Morgans’ brands in the deal. This purchase gives Morgans a needed jump in shares—after falling 68 percent in the past 12 months, shares for the company jumped 10 percent yesterday. This deal puts an equity value on Morgans of about $82 million. To read more, click here.
