Three hotels recapitalized in $475m one-time deal.Sonnenblick-Goldman Company arranged a $475 million recapitalization, which resulted in the refinancing of all of the third party corporate debt and all of the debt secured by a portfolio of five of the most recognized luxury boutique hotels in the world: the Morgans, the Royalton and the Hudson in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ; the Delano in Miami and the Mondrian in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. The transactions were arranged on behalf of Morgans Hotel Group The Morgans Hotel Group NASDAQ: MHGC (MHG) is a hospitality company that operates, owns, acquires and redevelops boutique hotels in the United States and Europe. (formerly known as Inn Schrager Hotels) and its partner NorthStar Capital Investment Group. The financing was co-provided by Greenwich Capital, Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. and Blackacre Capital Management. The hotel portfolio contains internationally-renowned properties that are strategically located in three of the most desirable, high-barrier-to-entry markets. "The combination of unique design, world-renowned restaurants, and stylish bars and lounges and a high level of personalized service and exacting standards have translated into unparalleled product differentiation Product Differentiation A source of competitive advantage that depends on producing some item that is regarded to have unique and valuable characteristics. ," said Mark J. Gordon, managing director and principal of Sonnenblick-Goldman Company. This formula has resulted in strong occupancy levels and pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. , as well as excellent guest retention rates. "The execution of this transaction further underscores the industry's continued belief in the long-term viability of the upscale boutique hotel sector," Mr. Gordon said. "The uniqueness of the asset base, combined with the positive trending cash flow and the irreplaceable locations, further contributed to the strong interest by the lending communities." Sonnenblick-Goldman's transaction team for the assignment included Mr. Gordon and Svetlin Ganchev, senior associate. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion