(hospitalitybusinessnews.com) According to the New York Post, Morgans Hotel Group has started a formal sales process for the 928-room Hudson Hotel on Columbus Circle and is hoping to fetch a nifty $500 million for the Ian Schrager-developed property. Additionally, Morgans is looking to sell its 194-room Art Deco-style Delano South Beach hotel in Miami for $200 million.
At the beginning of 2014, the Morgans Board of Directors formed a special transaction committee to evaluate a full range of alternatives, including the potential sale or merger of the Company. In May of 2014 the committee retained Morgan Stanley & Co. LLC as its financial advisor to assist the Company in exploring a full range of strategic alternatives.
Jason T. Kalisman, Morgans’ Chairman of the Board, stated: “As fiduciaries, Morgans’ Board is committed to maximizing value for our stockholders and, as we have consistently stated, the Board is constantly exploring all opportunities to do what is right for all stockholders. This has always included evaluating transactions as large as a potential sale or merger – but undertaken from a position of strength and flexibility. The engagement of Morgan Stanley to assist the committee in its strategic review allows the committee to draw on the insight and experience of a leading investment bank. Our stockholders have voiced their desire to know where the Board stands on these issues, and thus we felt it appropriate to share the fact that we had already taken the step of retaining advisors as we undergo the strategic review process.”
In light of Hiltons announced sale of the Waldorf Astoria, this could be a good time to make a deal.