Morgans Hotel Group

In 1984, Studio 54 co-founders and business partners Ian Schrager and Steve Rubell opened their first hotel, Morgans Hotel, named after J. P. Morgan's Morgan Library & Museum next-door. Designed by Andrée Putman, the instant hit introduced the boutique hotel category, becoming a "worldwide phenomenon." It is characterized by its triple-arched entrances that remain today.{{cn|date=May 2024}}

Following the success of Morgans Hotel, they opened the well-received Royalton Hotel and Paramount Hotel, both designed by Philippe Starck. With these properties, Schrager introduced "lobby socializing" where the hotel lobby became a new kind of gathering place for hotel guests and New York City residents alike, and "cheap chic" was affordable luxury offered in a stylish, sophisticated environment.{{cite news|last=Stodghill|first=Ron|title=A Hotelier Is Breaking the Mold Once Again|url=https://www.nytimes.com/2007/08/19/business/yourmoney/19ian.html?page|access-date=25 April 2013|newspaper=The New York Times|date=19 August 2007}} Schrager is also credited with inventing the "urban resort" with his Delano Hotel in Miami and Mondrian Hotel in West Hollywood, also designed by Starck.{{cn|date=May 2024}}

These were followed by the Hudson Hotel in New York, where he fully realized his concept "hotel as lifestyle", which he continued to refine, expanding to cities such as San Francisco with the Clift Hotel and London with the St. Martins Lane Hotel and the Sanderson Hotel, all designed by the prolific Starck.{{cn|date=May 2024}}

In June 2005, Schrager sold most of his stake in Morgans Hotel Group to launch the Ian Schrager Company. Despite stepping down as Chair and CEO, he retained $4 million in consultant pay and perks through end of 2007.{{Cite news|url=https://www.marketwatch.com/story/morgans-hotel-founder-schrager-getting-payday-in-ipo|title = Morgans serves cash to Schrager| newspaper=Marketwatch | last1=Marketwatch | first1=Steve Gelsi }}{{Cite web|url=https://nymag.com/nymetro/news/people/columns/intelligencer/15573/|title=Ian Schrager Checks Out, Cashes in with Morgans Hotel Group -- New York Magazine - Nymag|date=13 January 2006 }}

On Valentine's Day 2006, $MHG IPO'ed in a $360 million-target raise underwritten by Morgan Stanley, with Schrager cashing in his remaining 450,000 shares for another $9 million. Lance Armstrong served as a Board Member at IPO. Morgans Hotel Group was a publicly traded company on NASDAQ for over a decade.{{cn|date=May 2024}}

2014 saw the end of a legal proxy war for MHG control between two billionaire interests:

• Yucaipa, the private equity firm of Ronald Burkle, who loaned MHG $75 million during the recession in 2009,
• vs. MHG Chairman and Interim Acting CEO, Jason Taubman Kalisman, representing 13% majority interest of an investment vehicle for his grandfather, Alfred Taubman, owner of Sotheby's and Short Hills Mall, among other real estate interests.{{Cite web |last=Samtani |first=Hiten |date=2013-10-08 |title=Ron Burkle Morgans Hotel Group {{!}} Hudson Hotel NYC |url=https://therealdeal.com/new-york/2013/10/08/morgans-hotel-group-ceo-looks-to-boot-ron-burkle-from-hudson-hotel/ |access-date=2023-04-17 |website=The Real Deal |language=en}}

The two parties agreed to jointly seek a buyer, after all lingering legal proceedings with Burkle were settled.{{Cite web |last=Strickland |first=Julie |date=2014-03-04 |title=Jason Taubman Kalisman {{!}} Ron Burkle {{!}} Morgans Hotel Group |url=https://therealdeal.com/new-york/2014/03/04/kalisman-burkle-reach-truce-over-morgans-hotel-group/ |access-date=2023-04-17 |website=The Real Deal |language=en}} However, it had no permanent CEO to lead the company until 2016.{{Cite web|url=https://skift.com/2016/06/23/13-reasons-why-morgans-hotel-group-was-desperately-seeking-a-suitor/|title = 13 Reasons Why Morgans Hotel Group Was Desperately Seeking a Suitor|date = 23 June 2016}}

After years-long battle and board-rejected offers to buy MHG, Burkle partnered with Sam Nazarian's SBE Entertainment Group, who agreed to acquire MHG for $805 million, in a take-private transaction completed November 30, 2016.{{Cite web|url=https://nypost.com/2016/12/01/burkle-finally-acquires-morgans-hotel-group/|title = Ron Burkle finally acquires Morgans Hotel Group|date = December 2016}}

Burkle converted his existing Morgans equity stake into a SBE ownership stake with a board seat. SBE also received investment from Cain International, a global real estate investment company headed by Todd Boehly and Jonathan Goldstein.{{cite news|title=SBE Entertainment Concludes Morgans Hotel Acquisition|newspaper=The Wall Street Journal|date=December 1, 2016|accessdate=January 29, 2017|url=https://www.wsj.com/articles/sbe-entertainment-concludes-morgans-hotel-acquisition-1480612518}} Nazarian retained majority ownership of SBE, remaining its Founder & CEO, leading day-to-day operations.{{cn|date=May 2024}}

The merged company owned and/or operated over 20 hotels, including six properties under SBE's flagship SLS brand.{{cite news|title=SBE Entertainment to Acquire Morgans Hotel Group|newspaper=The Wall Street Journal|date=May 9, 2016|accessdate=January 29, 2017|url=https://www.wsj.com/articles/sbe-entertainment-to-acquire-morgans-hotel-group-1462822391}}

In November 2020, all of SBE Entertainment Group's hotel holdings were sold to Accor, after the latter already acquired a 50% stake in 2018. The majority of former MHG hotels is now being operated by Accor's lifestyle subsidiary Ennismore. A few of the former hotels however, including the Morgans Hotel itself, are now closed.{{cn|date=May 2024}}

As an independent company before M&A, MHG owned and managed 17 hotels in Doha, Istanbul, London, Los Angeles, Las Vegas, Miami Beach, New York and San Francisco comprising over 3,000 rooms. Each of its hotels was designed by a world−renowned designer:{{cn|date=May 2024}}

• Morgans Hotel - designed by Andrée Putman
• Royalton Hotel - designed by Philippe Starck
• Hudson Hotel - designed by Philippe Starck

• Delano Hotel - designed by Philippe Starck
• Mondrian Hotel - designed by Marcel Wanders
• Shore Club Hotel{{cite web|url=https://www.morganshotelgroup.com/|title=Morgans Hotel Group|website=Morgans Hotel Group|accessdate=25 December 2018}}

• Mondrian Hotel - designed by Benjamin Noriega-Ortiz

• Delano Las Vegas - rebranding of THEhotel at Mandalay Bay, in partnership with MGM Resorts International, later rebranded as W Las Vegas. {{cite news|title=The Hotel to be rebranded as Delano Las Vegas|newspaper=Las Vegas Review-Journal|date=August 6, 2012|accessdate=2012-08-07|url=http://www.lvrj.com/business/the-hotel-to-be-rebranded-as-delano-las-vegas-165201296.html}}{{cite web|url=http://www.delanolasvegas.com/|title=The Delano Las Vegas|publisher=MGM Resorts International|accessdate=12 September 2014}}

• Clift Hotel - designed by Philippe Starck

• St Martins Lane Hotel - designed by Philippe Starck
• Sanderson Hotel - designed by Philippe Starck
• Mondrian London at Sea Containers - designed by Tom Dixon{{cite web|url=https://www.morganshotelgroup.com/mondrian/mondrian-london|title=Mondrian London At Sea Containers|publisher=Morgans Group LLC|accessdate=12 September 2014}}{{cite web

|url=http://www.designweek.co.uk/news/tom-dixon-to-turn-sea-containers-house-into-mondrian-hotel/3034199.article

|title=Tom Dixon to turn Sea Containers House into Mondrian Hotel

|publisher=Design Week

|accessdate=3 January 2014}}

• Mondrian Doha

• 10 Karakoy A Morgans Original - designed by Sinan Kafadar

{{reflist}}

• {{Official website|www.morganshotelgroup.com}}

{{Hotel chains}}

Category:Hotel chains in the United States

Category:Companies based in New York City

Category:Hospitality companies of the United States

Category:2016 mergers and acquisitions

Category:Defunct hotel chains