The Real Deal Miami

Morgans Hotel Group to keep the Delano

August 03, 2011 04:14PM

The Morgans Hotel Group said it doesn’t plan to seek a buyer for the Delano in South Beach in the near future, the Miami Herald reported, despite an announcement earlier this year that the company may embrace opportunities to sell some of its hotels.
In fact, the company has secured a new $100 million line of credit to fund growth at the Delano — the property is getting more than $5 million in upgrades.
“That’s probably an asset that we will not be aggressively marketing,” said CEO Michael Gross. “But I say everything else, we will continue to be opportunistic and if it makes sense, we will pursue sales.”
Morgans reported a net loss of $11.4 million for the second quarter of 2011, but Miami Beach, the Delano, Shore Club and Mondrian all showed gains. Morgan recently completed repayments on its $161 million mortgage on the property. [Miami Herald]