Morgans Hotel Group Co. announced that it has entered into a definitive agreement to purchase a 90% controlling interest in The Light Group—a leading lifestyle food and beverage company currently operating numerous venues for MGM Resorts International. This acquisition, while being immediately accretive to the Company’s earnings, also provides Morgans with a first class food and beverage platform, a creative and experienced management team, and renowned brand names.
“We believe the acquisition of The Light Group will position us to increase our food and beverage profits, drive average daily rate growth at existing hotels and win and service new management agreements.” said Michael Gross, Chief Executive Officer of Morgans Hotel Group. “The Light Group brings a proven track record of creating compelling food and beverage experiences that attract audiences and drive revenue. This transaction fulfills our strategic goal of having industry-leading F&B capabilities in-house. Combined with the recent improvements in our balance sheet and strong expansion pipeline, this is an important step in establishing the fundamentals we need to execute our vision and extend our position as a leader in global lifestyle hospitality management.”