Morgans Hotel Group explores a sale of the company
Michael Gross, the company's chief executive, said that five major hospitality companies had shown interest in the US-based group which operates a number of lifestyle brands such as the Mondrian, Delano and Hudson, as well as independent properties.
The news came following an attempt by OTK Associates, the largest shareholder of Morgans, to seize control of the company after criticising the group's management for wasting resources and not capitalising upon on its potential.
Gross said that now was "a prudent time" to pursue a number of strategic alternatives, including a sale of the business.
"We had a deleveraging transaction in place to address looming and significant balance sheet issue and provide greater flexibility to maximise shareholder value," he explained. "In light of OTK's self-serving and obstructive actions, there is now substantial uncertainty around that proposed deleveraging transaction."
As well as managing the Sanderson and St Martins Lane hotels in London, Morgans is currently developing two properties in the city. The 360-bedroom Mondarin, located in Sea Containers House on the South Bank, will open next year, while the 234-bedroom Hudson hotel on Great Scotland Yard in St James's will launch in 2015.
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