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
Hana Financial Investment’s Lee Jin-Kook and a rendering of 1 St. Marks Place (Hana Financial Investments)

Hana Financial to sell loans tied to Manhattan office, hotel properties

Hana Financial to sell loans tied to Manhattan office, hotel properties
Extell Development's Gary Barnett and 32 West 48th Street (Google Maps)

Extell makes its Diamond District hotel official

Extell makes its Diamond District hotel official
(iStock)

Ski resorts gear up for tough season in the shadow of pandemic

Ski resorts gear up for tough season in the shadow of pandemic
Union Square and Mayor Bill de Blasio (Getty)

City drops bid to require special permits for Union Square hotels

City drops bid to require special permits for Union Square hotels
Domio’s interim CEO Jim Mrha (Photos via Domio; iStock)

Domio not shutting down, plans “financial re-engineering”

Domio not shutting down, plans “financial re-engineering”
Domio's CEO Jay Roberts and Chief Strategy Officer Adrian Lam (Photos via Domio)

Short-term rental operator Domio shuts down

Short-term rental operator Domio shuts down
Hilton Times Square at 234 West 42nd Street and Roosevelt Hotel at 45 East 45th Street (Google Maps; Pixabay)

New York hotel owners on the hook for $500M severance

New York hotel owners on the hook for $500M severance
454 East 148th Street and 5252 Kings Highway (Google Maps; Compass)

Bulk co-op buy in the Bronx tops mid-market investment sales

Bulk co-op buy in the Bronx tops mid-market investment sales
arrow_forward_ios

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

Loading...