NEW YORK, Nov. 14, 2012 /PRNewswire/ -- Morgans Hotel Group Co. (NASDAQ: MHGC) ("Morgans"), the New York-based hospitality management company, today announced that it has successfully executed a new $180 million non-recourse loan secured by Hudson in New York. The proceeds were used to retire the previous mortgage loan on Hudson of $115 million and fund reserves required under the new loan, with the remainder available for general corporate purposes.
"This new financing demonstrates the significant equity value we have in Hudson," said Michael Gross, CEO of Morgans. "We recently completed renovating all the guest rooms at Hudson and anticipate adding another 32 rooms later this year, bringing the total number of rooms up to 866. With this new capital and the sales process at Delano well underway, we are significantly improving our liquidity and believe we are well positioned to address upcoming maturities."
The loan can be prepaid at any time and there is no prepayment premium after the first twelve months. Interest is calculated at LIBOR plus 8.40% with a 0.50% LIBOR floor. The loan matures in February 2014 with a one year extension option to February 2015. The lender is UBS Real Estate Securities Inc.
About Morgans Hotel GroupMorgans Hotel Group Co. (NASDAQ: MHGC) is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates Delano in South Beach and Marrakech, Mondrian in Los Angeles, South Beach and New York, Hudson in New York, Morgans and Royalton in New York, Shore Club in South Beach, Clift in San Francisco, Ames in Boston, Sanderson and St Martins Lane in London, and a hotel in Playa del Carmen, Mexico. Morgans Hotel Group has ownership interests in or owns several of these hotels. Morgans Hotel Group has other property transactions in various stages of completion, including Delano properties in Las Vegas, Nevada; Cesme, Turkey and Moscow, Russia; Mondrian properties in London, England; Marrakech, Morocco; Istanbul, Turkey; Doha, Qatar and Nassau, The Bahamas; and a Hudson in London, England. Morgans Hotel Group also owns a 90% controlling interest in The Light Group, a leading lifestyle food and beverage company. For more information please visit www.morganshotelgroup.com. Forward-Looking and Cautionary Statements