Morgans Closes on Arizona Purchase
SCOTTSDALE, AZ, May 4, 2006. Morgans Hotel Group has closed on its acquisition of the 194-room Mondrian Scottsdale, formerly known as the James Hotel.
The final purchase price of $47.8 million was financed using available cash. The Company expects to enter into mortgage financing secured by this property in the near future.
The hotel will undergo renovations, which are expected to be completed by year end, to create the Company's distinctive lodging, spa and dining experience including: Agua Bathhouse, Skybar and Jeffrey Chodorow's critically acclaimed, Asia de Cuba.
The hotel will remain open during this period. Don Jacinto, previously the Hotel Manager at Hudson in New York since June 2002, has been promoted to General Manager of Mondrian Scottsdale. Don has been instrumental in building and developing every aspect of Hudson's business and customer experience.
MHG's appointment of a key executive from one of its most respected New York properties emphasizes Morgans' commitment to the success of the new Mondrian Scottsdale, the first extension of the Mondrian brand.
W. Edward Scheetz, President and Chief Executive Officer stated, "We are excited to close this transaction and are confident that over time we can dramatically enhance the profitability of the hotel. We expect to be able to generate attractive value for shareholders post-renovation by applying our intensive asset operational focus and leveraging our larger sales team and recognizable Mondrian brand."
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