The Real Deal New York

Kalisman, Burkle reach truce over Morgans Hotel Group

Duo agrees to seek buyer this summer
March 04, 2014 01:03PM

An end to hostilities has reportedly been called in the long-running battle for control of the Morgans Hotel Group.

Jason Taubman Kalisman, who took over as interim CEO of the Morgans Hotel Group following Michael Gross’ resignation last year, has reached an agreement with Ron Burkle, who currently owns Morgans’ debt and preferred shares.

Morgans Hotel Group owns the Delano, Mondrian and Hudson Hotel brands.

The two executives, who have been duking it out for control of Morgans, will likely hold off until the summer and then seek a buyer, a source close to the situation told the New York Post.

“Yeah, this is a peace deal,” the source told the Post. “I think it makes sense to get the house in order.”

Kalisman’s Morgans Hotel Group has settled each of his four lingering legal proceedings with Burkle, according to a regulatory filing cited by the Post. Burkle is to be paid $3 million, save any funds Yucaipa Companies generates from insurance proceeds. [NYP]Julie Strickland