Morgans Hotel refinancing has Burkle fuming: report

New York /
Feb.February 11, 2014 09:01 AM

The Ian Schrager-founded Morgans Hotel Group borrowed $450 million against two of its properties in a deal that will help pay off the majority of the $220 million debt held by billionaire shareholder Ron Burkle. The refinancing is seen as a rebuff of Burkle, who has been pushing for Chairman Jason Taubman Kalisman to hand off the company.

Citigroup values the Hudson Hotel at 356 West 58th Street and the Delano in South Beach at roughly $620 million. After the debt deal, Kalisman might look to sell either of those properties, the New York Post reported, citing an undisclosed source.

Another source said Burkle is “pissed off” over news of the deal.

Burkle bid $8 a share — roughly $870 million — on the company in November, but Kalisman rejected the offer, as previously reported.

“The [refinancing] puts them in a position to sell one or two hotels or the whole company,” Chris Agnew, an analyst for financial management firm MKM Partners, told the Post. [NYP]Mark Maurer


Related Articles

arrow_forward_ios
From left: Furnished Quarters' Steven (left) and Gary Brown with 315 West 33rd Street (left) and 158 West 27th Street (Furnished Quarters, CityRealty, CityFeet)
Landlords sue hospitality stalwart Furnished Quarters
Landlords sue hospitality stalwart Furnished Quarters
Tribeca Associates managing partner Mark Gordon. (Moxy, LinkedIn via Gordon)
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
Mark Gordon’s Tribeca Associates walks away from FiDi Moxy Hotel
(iStock)
Job recovery sputters, but hospitality & leisure add hiring
Job recovery sputters, but hospitality & leisure add hiring
Ron Burkle and Andrew Zobler with The NoMad New York. (Google Maps, Getty)
NoMad Hotel heads back to the auction block
NoMad Hotel heads back to the auction block
Jeff Sutton and 25 West 34th St. (Wharton Properties, Google Maps)
Jeff Sutton will replace Midtown retail space with hotel
Jeff Sutton will replace Midtown retail space with hotel
The Plaza Hotel, St. Regis Hotel, and Waldorf Astoria (iStock)
Outlook for hotels improves — from awful to merely bad
Outlook for hotels improves — from awful to merely bad
Sonder co-founder Francis Davidson (Sonder, iStock)
Sonder will merge with SPAC to go public
Sonder will merge with SPAC to go public
It may not be so easy to book a vacation this year: Rental listings are flying off the market, and prices are soaring. (iStock)
Bonkers season on tap for summer vacation rentals
Bonkers season on tap for summer vacation rentals
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...