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Morgans Hotel Group Buys Majority Stake In Light Group

By Chuckmonster on Thursday, 17th November 2011 2:51pm
  » filed under Mergers & Acquisitions  comments: 6


Today, Morgans Hotel Group announced in a statement that it had reached an agreement to purchase 90% stake in nightlife pioneer The Light Group for $46.5m. The deal calls for a $28.5M cash on the barrel head with with a $18m paid out from Light Group earnings over the next 27 months plus other incentives and stock transfers.

The Light Group operates a dozen or so nightlife, daylife and restaurant venues inside of most of MGM Resorts International's portfolio of Las Vegas resorts. Light Group had been tapped to move into hotel management business with an agreement with MGM Resorts International/CityCenter Land LLC to operate the Harmon Hotel before construction flaws rendered the tower unsafe for occupancy. Light Group was also rumored to have made an offer to buy Monte Carlo from a floundering MGM Resorts International in March 2009.

Morgans Hotel Group is best known in Las Vegas for its short stint as owner of the Hard Rock wherein they presided over the resorts amazing expansion. Morgans stepped away from ownership after having its debt foreclosed upon by lenders in March 2011.

Andrew Sasson, founder of The Light Group will take a seat on Morgans Hotel Group board of directors.

It has become increasingly more obvious that Light Group venues have become as over saturated in MGM's Las Vegas in much the same ways that Cirque has. With the introduction of Butter Group (10AK at Mirage) and sbe entertainment (Hyde at Bellagio) MGM is starting to look beyond Light Group for nightlife partners.

Light Group's Lily Lounge in Bellagio is scheduled to open in the space formerly occupied by Caramel in February 2012.


Comments & Discussion:

For the year ending September 31st, Light Group has $7.7 million in cash flow? Is that a typo?

I thought the same thing. If that is the truth, they suck.

Or they count the cash in a separate room.

Or they spent it all on Snookie and The Situation

^^Definitely the third option.

*sniff sniff* Cash flow? What cash flow? *blinkblinkblinkblinkblinkblink*

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