blockitecture leaderboard

'Hot' Hotel Group Goes Public

When Morgans Hotel Group (OTC: MHGC) goes public, will investors find its stock as hot as its hotels?

"If, on a balmy evening, you've enjoyed a high-fashion cocktail served by a nearly nude nymph (or at least an aspiring actress or model) while seated poolside at the Delano Hotel in South Beach or on a mattress in the Mondrian's SkyBar in West Hollywood, then you may be tempted to dip into this week's IPO of Morgans Hotel Group (OTC: MHGC).

Morgans is the hotel company that owns these and seven other supercharged boutique properties in the U.S. and U.K. Management is hoping to raise some $275 million to pay down debt and make an acquisition when it goes public at a price that underwriters Morgan Stanley and J.P. Morgan Chase have pegged at between $19 and $21/share.

...Perhaps because Morgans is loaded with debt, hasn't turned a profit in at least three years, and is in the hands of a new management team that may have mastered finance but isn't known for the kind of fashion sense needed to keep its properties on the knife-edge of desirability in an increasingly competitive marketplace."

Thanks to Peter Slatin

Full Story: Morgans' IPO: The Lounge, the Niche and the Wardrobe

Comments

building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25
Red necktie with map of Boston

For dads and grads: tie one on to celebrate your city!

Choose from over 20 styles imprinted with detailed city or transit maps.
$44.95
Women's t-shirt with map of Los Angeles

City T-Shirts for the ladies!

Women's Supersoft CityFabric© Fashion Fit Tees. Now available in six different cities.
$24.00
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $16.95 a month