Morgans closes sale of London hotels

24th November 2011 (Last Updated November 24th, 2011 18:30)

Morgans Hotel Group has completed the sale of the Sanderson and St Martins Lane hotels in London, UK, for £192m ($300m) to Capital Hill Hotels, a Middle Eastern investor.

Morgans Hotel Group has completed the sale of the Sanderson and St Martins Lane hotels in London, UK, for £192m ($300m) to Capital Hill Hotels, a Middle Eastern investor.

The company’s 50% portion of the net proceeds, after the repayment of debt and closing costs, is $73m.

The net proceeds will be used to fund the acquisition of The Light Group, as well as renovations at its hotels.

Morgans will continue to operate the Sanderson and St Martins Lane hotels under long-term management agreements, the terms of which were extended from 2027 to 2041.