For facilitating the transaction, MHG received approximately US$6 million in cash at closing based on excess working capital levels at the joint venture. MHG says it could receive additional consideration based on the value of an interest rate hedge on the existing joint venture debt in the event of a debt refinancing.
The hotels are known as Sanderson and St. Martins Lane. MHG says the transaction rice implies a gross value for the assets of approximately US$300 million.
MHG, owns and operates the Morgans, Royalton and Hudson hotels in New York; Mondrian hotels in Los Angeles and Scottsdale, AZ; Delano and the Shore Club in Miami; Clift in San Francisco, and the two London hotels. This month, it acquired the Hard Rock Hotel & Casino in Las Vegas and related assets with an equity partner. In addition, the company has other property transactions in various stages of completion in Miami Beach and Las Vegas.
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