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Nazarian, founder and chief executive officer of SBE Entertainment Group, is expected to take over as CEO of the combined company, according to people familiar with the discussions. SBE also owns restaurant and high-end nightclub brands such as Hyde. A deal could be announced as early as this month, these people said. A merger would bring together two hospitality companies known for their panache, but also ones that have suffered recent setbacks. They helped usher in a new concept: the boutique hotel, which emphasized design and a thriving bar scene to cater to a stylish, affluent crowd. More recently, Morgans has suffered from financial loses, infighting and turnover at the top executive ranks. The company turned down a number of takeover offers over the years, including ones from Middle Eastern investment funds and Hyatt Hotels Corp.
Darren Walters
Nazarian, founder and chief executive officer of SBE Entertainment Group, is expected to take over as CEO of the combined company, according to people familiar with the discussions.
SBE also owns restaurant and high-end nightclub brands such as Hyde. A deal could be announced as early as this month, these people said. A merger would bring together two hospitality companies known for their panache, but also ones that have suffered recent setbacks.
They helped usher in a new concept: the boutique hotel, which emphasized design and a thriving bar scene to cater to a stylish, affluent crowd. More recently, Morgans has suffered from financial loses, infighting and turnover at the top executive ranks. The company turned down a number of takeover offers over the years, including ones from Middle Eastern investment funds and Hyatt Hotels Corp. Morgans has sold most of its properties over the years, and now owns only two: the Hudson in New York City and the Delano in Miami Beach.
Nazarian no longer is personally involved with that hotel after Nevada gambling regulators granted him a limited and temporary casino license. During his testimony before regulators he spoke of his past drug use. The two firms have hired Deutsche Bank and Morgan Stanley to market the company, these people said. FRHI operates hotels with nearly 44, rooms A spokesman for FRHI declined to comment. FRHI owns some of the more renowned brands in the high-end segment of hospitality.
But the company comes on the market at a time when the luxury hotel sector is becoming increasingly competitive. Four Seasons Hotels and Resorts, which is also owned in part by Kingdom Holdings, is pursuing a rapid expansion plan.
Smaller higher-end brands like Auberge Resorts are eying urban locations for the first time. Hilton Worldwide Holdings Inc. A sale of FRHI could give a boost to merger and acquisition activity in the hospitality sector, which has been mostly dormant in recent years. For New York City hoteliers in search of financing, whether seasoned pros or first-timers, opportunities abound. The number of active lenders in the sector ha And global hospitality investments lenders, charging between 8 and 10 percent interest on hotel deals in when few others were lending, are now forced to charge between 4 and 5 percent.
Jump to. Sections of this page. Accessibility help. Email or Phone Password Forgotten account? Log In. Forgotten account? Not Now. Hotel Investment Services we offer. Richard Born and Ira Drukier, global hospitality investments partnered in and now own and operate 25 hotels Continue reading. Richard Born and Ira Lenders unleash flood of NYC hotel financing.
They come in several varieties Hoteliers bullish on NYC despite new supply — Hospitality-investments. In Europe, during the first-quarterthe region reported a 1.
STR releases U. The number of hotels opening in the United States is forecast to increase by 42 percent inafter a lacklusteraccording to new data from STR Analytics Only hotels opened in the United States. Hotel Development Set to Jump. Hospitality Investments and Developments are recognized experts in handling every detail for hotel brands, hotel management companies, property owners, and equity partnership who are interested in acquiring or developing hotels in New York City.
Hotel Developments in NYC Hospitality Invest. Developers are shunning luxury hotels in the U. See .
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During his time with Starwood Capital, Mr. Walters led a real estate and hospitality consultancy boutique that provided services in international mergers and acquisitions, corporate finance, capital raisings, feasibility study and valuation analysis. Add to list Select existing list. Subscribe. Home Team Contact.
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