Morgans Hotel Group is selling its stakes in two Midtown Manhattan hotels to Texas-based FelCor Lodging Trust for $140 million, The Wall Street Journal reports. Morgans Hotel, which will continue to manage the properties under a long-term management agreement, received a $7 million security deposit for the hotels.
The acquisition of the Royalton and Morgans hotels is the real estate investment trust’s first hotel deal in New York. The seller will use the proceeds to retire about $37.7 million in outstanding debt. The deal is expected to be completed in the second quarter of 2011.
Click here for the story from The Wall Street Journal.
Click here for additional coverage from Bloomberg.