Attached files
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8-K - FORM 8-K - Morgans Hotel Group Co. | c20784e8vk.htm |
Exhibit 99.1
Contacts:
Richard Szymanski
Morgans Hotel Group Co.
212.277.4188
Richard Szymanski
Morgans Hotel Group Co.
212.277.4188
Neil Maitland
The Abernathy MacGregor Group
212.371.5999
The Abernathy MacGregor Group
212.371.5999
MORGANS HOTEL GROUP REPORTS SECOND QUARTER 2011 RESULTS
NEW YORK, NY August 2, 2011 Morgans Hotel Group Co. (NASDAQ: MHGC) (MHG or the Company)
today reported financial results for the quarter ended June 30, 2011.
| Adjusted EBITDA was $11.8 million in the second quarter of 2011. Excluding the impact of
asset sales and Hard Rock, Adjusted EBITDA increased by $3.7 million from the comparable
period in 2010. |
| Revenue per available room (RevPAR) for System-Wide Comparable Hotels increased by
16.1%, or 14.4% in constant dollars, in the second quarter of 2011 from the comparable
period in 2010, driven primarily by an 11.1% increase in average daily rate (ADR) (9.4%
in constant dollars). |
| EBITDA from Owned Comparable Hotels increased by 26% in the second quarter of 2011 as
compared to the same period in 2010, driven by a 13.5% RevPAR increase. Operating margins
at Owned Comparable Hotels increased by 340 basis points. |
| In May 2011, the Company completed the sales of three hotels and utilized a portion of
the net proceeds to retire $140 million of debt. The Company continues to operate these
hotels under long-term management agreements. |
| In June 2011, the Company acquired from affiliates of China Grill Management (CGM) the
50% interests CGM owned in MHGs food and beverage joint ventures with CGM for
approximately $20 million thereby giving the Company operational control over its food and
beverage operations. |
| In July 2011, the Company entered into a new $100 million senior secured revolving
credit facility. |
| In August 2011, the Company entered into a hotel management and residential licensing
agreement for a 310-room Mondrian-branded hotel, to be the lifestyle hotel destination in
the 1,000 acre destination resort metropolis, Baha Mar Resort, in Nassau, The Bahamas. |
Michael Gross, CEO of the Company, said: We are moving quickly to become a global leader in
lifestyle hospitality management. The goal is and always will be clear: to drive growth and long
term shareholder value. Four months into the new management structure, weve acted swiftly to
position ourselves for success. Asset sales and a new $100 million credit facility have allowed us
to address key short-term debt maturities while providing liquidity to grow. Second quarter
results outperformed industry averages across all our markets and were particularly pleased with
the early success of the
Mondrian SoHo, which we view as a reflection of our brands untapped growth potential. Were
excited about our robust development pipeline that is already beginning to show results, as
reflected by the just-announced Mondrian management agreement at Baha Mar.
Second Quarter 2011 Operating Results
Adjusted EBITDA for the second quarter of 2011 was $11.8 million, a decrease of 14.8%
from the same period in 2010. Excluding the EBITDA contribution from the three hotels MHG sold in
May 2011 and from Hard Rock Hotel & Casino in Las Vegas, which the Company managed and partially
owned until March 2011, Adjusted EBITDA increased by $3.7 million from the second quarter of 2010.
This increase was due to strong operating results in all of the Companys major markets and the
rapid ramp-up at our new Mondrian hotel in New Yorks SoHo neighborhood.
RevPAR at System-Wide Comparable Hotels increased by 16.1% (14.4% in constant dollars) in the
second quarter of 2011 compared to the second quarter of 2010 driven primarily by gains in ADR,
which increased by 11.1% (9.4% in constant dollars).
Results were strong across all the Companys major markets, led by its South Beach hotels, which
continue to benefit from both strong domestic and international travel. At MHGs key EBITDA
contributors, Delanos RevPAR increased by 22.0%, the London hotels RevPAR increased 19.2% (9.0%
in constant dollars) despite a significant amount of rooms out of service at St. Martins Lane due
to a replacement of the air conditioning system, and Hudsons RevPAR increased 7.3%. Mondrian
SoHo, in its first full quarter, posted an occupancy rate of 84.3% during the three months ended
June 30, 2011 and ADR of $297.31.
Primarily as a result of the sale in May 2011 of Mondrian Los Angeles, Royalton and Morgans , MHG
recorded a decrease of 7.7% in total hotel revenues during the second quarter of 2011 as compared
to the same period in 2010. At MHGs Comparable Owned Hotels, which includes Hudson, Delano and
Clift, RevPAR increased 13.5% in the three months ended June 30, 2011 as compared to the same
period in 2010.
The Company also recorded decreases in operating expenses, depreciation and amortization and
interest expense during the second quarter of 2011 as a result of the May 2011 sale of these three
hotels. MHG continues to manage these hotels pursuant to long-term management agreements, and as a
result, the gains on sales are deferred and recognized over the initial term of the respective
management agreements. During the three months ended June 30, 2011, the Company recorded $0.6
million of this gain as income.
Operating margins at Comparable Owned Hotels increased by 340 basis points in the second quarter of
2011 compared to the same period last year. The strong margin expansion was driven by increases in
ADR, which accounted for approximately 70% of the RevPAR growth at the Companys Comparable Owned
Hotels.
MHG recorded a net loss of $11.4 million in the second quarter of 2011 compared to a loss of $21.1
million in the second quarter of 2010 due primarily to the decreases in interest expense and the
Companys equity in loss of unconsolidated joint ventures.
Balance Sheet and Liquidity
During the second quarter, MHG took significant steps in transforming its balance sheet to provide
the Company with capital to grow.
In May 2011, the Company completed the sales of Mondrian Los Angeles, Royalton and Morgans for
aggregate net proceeds of $268.1 million. The Company used the proceeds, along with cash in
escrow, to retire the $103.5 million mortgage on Mondrian Los Angeles and the outstanding balance
on the Companys revolving credit facility for which Royalton, Morgans and Delano South Beach
served as collateral. Net proceeds after this repayment of debt was approximately $133 million.
The Company utilized $145 million of tax net operating loss carryforwards to offset the gain on
asset sales.
In July 2011, the Company entered into a new $100 million senior secured revolving credit facility
with additional borrowing capacity up to $110 million. The facilitys interest rate is LIBOR plus
4.0%, subject to a LIBOR floor of 1.0%. The facility matures in three years and is secured by
Delano in South Beach. The credit facility contains standard financial covenants, including a
minimum fixed charge coverage ratio of 1.05x in the first year and 1.10x thereafter. This
provides MHG with capacity to help finance growth and to reinvest in its existing hotels.
As a result of the hotel sales, MHGs total consolidated debt at June 30, 2011, excluding the Clift
lease, was $448.9 million with a weighted average interest rate of 2.71%. At June 30, 2011, MHG had
$109.6 million of cash and cash equivalents and $22.3 million of restricted cash.
MHGs total pro forma liquidity as of June 30, 2011, giving effect to the new $100 million
revolving credit facility as if it had closed on June 30, 2011, would have been $209.6 million.
The Company intends to utilize this liquidity to refinance outstanding debt on Hudson, provide
capital for new hotels and to renovate existing hotels.
After the sale of the three hotels in May 2011, MHG currently has approximately $140 million of
remaining tax net operating loss carry forwards to offset future income, including gains on future
asset sales.
Development Activity
MHG is focused on growing its portfolio, primarily with its core brands, in major gateway markets
and key resort destinations and intends to utilize the majority of its liquidity to fund new hotel
growth.
In August, MHG entered into a hotel management and residential licensing agreement for a 310-room
Mondrian-branded hotel, to be the lifestyle hotel destination in the 1,000 acre destination resort
metropolis, Baha Mar Resort, in Nassau, The Bahamas. This hotel is expected to represent the fifth
Mondrian hotel in the expansion of the Companys iconic brand. Upon completion and opening of the
hotel, MHG will operate Mondrian at Baha Mar pursuant to a 20-year management agreement. The hotel
is scheduled to open in late 2014. MHG is required to fund approximately $10 million of key money
just prior to and at opening of the hotel. At signing, this amount was funded into escrow and the
Company is in the process of replacing this obligation with a $10 million standby letter of credit
for up to 48 months.
In June 2011, the Company acquired from affiliates of CGM the 50% interests CGM owned in MHGs food
and beverage joint ventures with CGM for approximately $20 million. The joint ventures operated
certain restaurants and bars at Delano South Beach, Mondrian Los Angeles, Mondrian South Beach,
Morgans, Sanderson and St Martins Lane. CGM has agreed to continue to manage the food and beverage
operations at these properties for a transitional period pursuant to short-term cancellable
management agreements while the Company reassesses its food and beverage strategy.
At its existing hotels, MHG intends to spend approximately $5 to $7 million on projects at Delano
which are expected to have a positive EBITDA impact. This includes upgrades to Delanos exclusive
bungalows and suites, improvements to the public areas and additional meeting space. The Company
anticipates this work will be performed in the third quarter and early fourth quarter to minimize
revenue displacement and to have the upgraded facilities completed and available for the peak
travel season in South Beach.
MHG is currently reviewing the scope of renovation work to be completed at Hudson, which is planned
to commence during New Yorks seasonally slow first quarter of 2012. As part of this renovation,
the Company intends to convert 16 SRO units into guest rooms at a cost of approximately $2 million,
or $125,000 per room, significantly below recent trading prices of hotel rooms in New York City.
2011 Outlook
MHGs
outlook is based on trends in its markets, although various factors,
including uncertainty in the economy and volatility
in travel and weather patterns, could result in changes to this outlook.
MHG expects that the RevPAR increase at System-Wide Comparable Hotels for 2011 compared to 2010
should be at the high-end of our previous guidance of an increase of 7% to 9%. MHG is confident in
its ability to generate strong flow-through to EBITDA, although the Company is not providing
further detail on projected EBITDA at this time, given the transitional nature of this year and
multiple moving parts as it moves toward a brand and management focused business model.
Conference Call
MHG will host a conference call to discuss the second quarter financial results today at 5:00 PM
Eastern time.
The call will be webcast live over the Internet at 5:00 PM Eastern time and can be accessed at
www.morganshotelgroup.com under the About Us, Investor Overview section. Participants should follow
the instructions provided on the website for the download and installation of audio applications
necessary to join the webcast.
The call can also be accessed live over the phone by dialing (888) 802-8577 or (973) 935-8754 for
international callers; the conference ID is 77279242. A replay of the call will be available three
hours after the call and can be accessed by dialing (800) 642-1687 or (706) 645-9291 for
international callers; the conference ID is 77279242. The replay will be available from August 3,
2011 through August 9, 2011.
Definitions
Owned Comparable Hotels includes all wholly-owned hotels operated by MHG except for hotels under
renovation during the current or the prior year, development projects and discontinued operations.
Owned Comparable Hotels for the three and six months ended June 30, 2011 and 2010 includes Hudson
in New York, Delano in South Beach and Clift in San Francisco.
System-Wide Comparable Hotels includes all hotels operated by MHG except for hotels added or
under renovation during the current or the prior year, development projects and discontinued
operations. System-Wide Comparable Hotels for the three and six months ended June 30, 2011 and
2010 excludes the Hard Rock Hotel & Casino in Las Vegas (Hard Rock), which MHG no longer manages
effective March 1, 2011, Mondrian Scottsdale, which effective March 16, 2010 was no longer owned or
managed by MHG, Mondrian SoHo, which opened in February 2011, the San Juan Water and Beach Club,
which was no longer managed by MHG effective July 13, 2011, and Hotel Las Palapas, which is a
non-MHG branded hotels.
Adjusted EBITDA is adjusted earnings before interest, taxes, depreciation and amortization as
further defined below.
About Morgans Hotel Group
Morgans Hotel Group Co. (NASDAQ: MHGC) is widely credited as the creator of the first boutique
hotel and a continuing leader of the hotel industrys boutique sector. Morgans Hotel Group
operates Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian
in Los Angeles, South Beach and New York, Clift in San Francisco, Ames in Boston, Sanderson and St
Martins Lane in London, and a hotel in Playa del Carmen, Mexico. Morgans also owns, or has
ownership interests in, several of these hotels. Morgans Hotel Group has other property
transactions in various stages of completion including a Delano in Cabo San Lucas, Mexico, a Delano
in Turkey, a Mondrian in Doha, Qatar and a hotel in New York to be branded with one of MHGs
existing brands. For more information please visit
www.morganshotelgroup.com.
Forward-Looking and Cautionary Statements
This press release may contain certain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among
other things, the operating performance of our investments and financing needs and prediction of
certain future other events. Forward-looking statements are generally identifiable by use of
forward-looking terminology such as may, expect, anticipate, estimate believe, project,
or other similar words or expressions. These forward-looking statements reflect our current views
about future events and are subject to risks, uncertainties, assumptions and changes in
circumstances that may cause our actual results or other future events to differ materially from
those expressed in any forward-looking statement. Important risks and factors that could cause our
actual results to differ materially from those expressed in any forward-looking statements include,
but are not limited to economic, business, competitive market and regulatory conditions such as: a
sustained downturn in economic and market conditions, particularly levels of spending in the
business, travel and leisure industries; continued tightness in the global credit markets; general
volatility of the capital markets and our ability to access the capital markets; our ability to
refinance our current outstanding debt and to repay outstanding debt as such debt matures; our
ability to protect the value of our name, image and brands and our intellectual property; risks
related to natural disasters, such as earthquakes, volcanoes and hurricanes; hostilities, including
future terrorist attacks, or fear of hostilities that affect travel; and other risk factors
discussed in Morgans Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and
other documents filed by Morgans with the Securities and Exchange Commission from time to time. All
forward-looking statements in this press release are made as of the date hereof, based upon
information known to management as of the date hereof, and Morgans assumes no obligations to update
or revise any of its forward-looking statements even if experience or future changes show that
indicated results or events will not be realized.
Income Statements
(In thousands, except per share amounts)
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Rooms |
$ | 33,485 | $ | 35,093 | $ | 64,519 | $ | 64,343 | ||||||||
Food & beverage |
15,611 | 17,549 | 33,641 | 35,045 | ||||||||||||
Other hotel |
1,733 | 2,444 | 3,749 | 4,653 | ||||||||||||
Total hotel revenues |
50,829 | 55,086 | 101,909 | 104,041 | ||||||||||||
Management and other fees |
3,380 | 5,103 | 6,704 | 9,532 | ||||||||||||
Total revenues |
54,209 | 60,189 | 108,613 | 113,573 | ||||||||||||
Operating Costs and Expenses: |
||||||||||||||||
Rooms |
9,685 | 10,291 | 20,859 | 20,316 | ||||||||||||
Food & beverage |
13,135 | 14,184 | 28,237 | 28,100 | ||||||||||||
Other departmental |
1,036 | 1,260 | 2,247 | 2,512 | ||||||||||||
Hotel selling, general and administrative |
10,792 | 11,811 | 23,350 | 23,248 | ||||||||||||
Property taxes, insurance and other |
3,704 | 4,711 | 7,889 | 8,811 | ||||||||||||
Total hotel operating expenses |
38,352 | 42,257 | 82,582 | 82,987 | ||||||||||||
Corporate expenses: |
||||||||||||||||
Stock based compensation |
2,031 | 2,790 | 6,018 | 6,588 | ||||||||||||
Other |
6,018 | 6,430 | 12,865 | 12,637 | ||||||||||||
Depreciation and amortization |
4,199 | 8,011 | 12,572 | 15,356 | ||||||||||||
Restructuring, development and disposal costs |
3,800 | 1,189 | 8,393 | 1,866 | ||||||||||||
Total operating costs and expenses |
54,400 | 60,677 | 122,430 | 119,434 | ||||||||||||
Operating loss |
(191 | ) | (488 | ) | (13,817 | ) | (5,861 | ) | ||||||||
Interest expense, net |
10,014 | 12,389 | 19,008 | 24,739 | ||||||||||||
Equity in loss of unconsolidated joint ventures |
910 | 7,739 | 10,393 | 8,002 | ||||||||||||
Gain on asset sales |
(620 | ) | | (620 | ) | | ||||||||||
Other non-operating expense |
879 | 163 | 2,269 | 15,192 | ||||||||||||
Pre tax loss |
(11,374 | ) | (20,779 | ) | (44,867 | ) | (53,794 | ) | ||||||||
Income tax expense |
428 | 279 | 293 | 573 | ||||||||||||
Net loss from continuing operations |
(11,802 | ) | (21,058 | ) | (45,160 | ) | (54,367 | ) | ||||||||
(Loss) Income from discontinued operations, net of tax |
(5 | ) | (447 | ) | 485 | 16,755 | ||||||||||
Net loss |
(11,807 | ) | (21,505 | ) | (44,675 | ) | (37,612 | ) | ||||||||
Net loss attributable to noncontrolling interest |
383 | 434 | 1,208 | 581 | ||||||||||||
Net loss attributable to Morgans Hotel Group Co. |
$ | (11,424 | ) | $ | (21,071 | ) | $ | (43,467 | ) | $ | (37,031 | ) | ||||
Preferred stock dividends and accretion |
(2,229 | ) | (2,114 | ) | (4,416 | ) | (4,192 | ) | ||||||||
Net loss attributable to common stockholders |
$ | (13,653 | ) | $ | (23,185 | ) | $ | (47,883 | ) | $ | (41,223 | ) | ||||
(Loss) income per share: |
||||||||||||||||
Basic and diluted from continuing operations |
$ | (0.45 | ) | $ | (0.75 | ) | $ | (1.55 | ) | $ | (1.91 | ) | ||||
Basic and diluted from discontinued operations |
$ | (0.00 | ) | $ | (0.01 | ) | $ | 0.02 | $ | 0.55 | ||||||
Basic and diluted attributable to common stockholders |
$ | (0.45 | ) | $ | (0.76 | ) | $ | (1.53 | ) | $ | (1.36 | ) | ||||
Weighted average common shares outstanding basic and diluted |
30,498 | 30,484 | 31,255 | 30,395 |
(In Actual Dollars) | (In Constant Dollars, if different) | (In Actual Dollars) | (In Constant Dollars, if different) | |||||||||||||||||||||||||||||||||||||||||||||
Three Months | Three Months | Six Months | Six Months | |||||||||||||||||||||||||||||||||||||||||||||
Ended June 30, | % | Ended June 30, | % | Ended June 30, | % | Ended June 30, | % | |||||||||||||||||||||||||||||||||||||||||
Selected Hotel Operating Statistics (1) | 2011 | 2010 | Change | 2011 | 2010 | Change | 2011 | 2010 | Change | 2011 | 2010 | Change | ||||||||||||||||||||||||||||||||||||
Hudson |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
95.6 | % | 94.3 | % | 1.4 | % | 85.7 | % | 85.7 | % | 0.0 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 224.96 | $ | 212.51 | 5.9 | % | $ | 196.86 | $ | 189.87 | 3.7 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 215.06 | $ | 200.40 | 7.3 | % | $ | 168.71 | $ | 162.72 | 3.7 | % | ||||||||||||||||||||||||||||||||||||
Delano |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
71.6 | % | 62.4 | % | 14.7 | % | 70.9 | % | 62.7 | % | 13.1 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 464.78 | $ | 437.21 | 6.3 | % | $ | 524.01 | $ | 545.16 | -3.9 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 332.78 | $ | 272.82 | 22.0 | % | $ | 371.52 | $ | 341.82 | 8.7 | % | ||||||||||||||||||||||||||||||||||||
Clift |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
77.1 | % | 73.1 | % | 5.5 | % | 75.5 | % | 66.7 | % | 13.2 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 217.56 | $ | 183.10 | 18.8 | % | $ | 216.34 | $ | 191.30 | 13.1 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 167.74 | $ | 133.85 | 25.3 | % | $ | 163.34 | $ | 127.60 | 28.0 | % | ||||||||||||||||||||||||||||||||||||
Total Owned Comparable Hotels |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
87.4 | % | 84.3 | % | 3.7 | % | 80.9 | % | 77.5 | % | 4.4 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 250.46 | $ | 228.81 | 9.5 | % | $ | 241.38 | $ | 230.14 | 4.9 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 218.90 | $ | 192.89 | 13.5 | % | $ | 195.28 | $ | 178.36 | 9.5 | % | ||||||||||||||||||||||||||||||||||||
St. Martins Lane |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
69.5 | % | 75.8 | % | -8.3 | % | 69.5 | % | 75.8 | % | -8.3 | % | 69.1 | % | 74.5 | % | -7.2 | % | 69.1 | % | 74.5 | % | -7.2 | % | ||||||||||||||||||||||||
ADR |
$ | 417.83 | $ | 346.50 | 20.6 | % | $ | 413.91 | $ | 375.34 | 10.3 | % | $ | 385.02 | $ | 335.37 | 14.8 | % | $ | 385.02 | $ | 355.05 | 8.4 | % | ||||||||||||||||||||||||
RevPAR |
$ | 290.39 | $ | 262.65 | 10.6 | % | $ | 287.67 | $ | 284.51 | 1.1 | % | $ | 266.05 | $ | 249.85 | 6.5 | % | $ | 266.05 | $ | 264.51 | 0.6 | % | ||||||||||||||||||||||||
Sanderson |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
77.4 | % | 71.1 | % | 8.9 | % | 77.4 | % | 71.1 | % | 8.9 | % | 73.2 | % | 72.8 | % | 0.5 | % | 73.2 | % | 72.8 | % | 0.5 | % | ||||||||||||||||||||||||
ADR |
$ | 470.36 | $ | 393.04 | 19.7 | % | $ | 465.95 | $ | 425.75 | 9.4 | % | $ | 439.31 | $ | 383.31 | 14.6 | % | $ | 439.31 | $ | 405.80 | 8.3 | % | ||||||||||||||||||||||||
RevPAR |
$ | 364.06 | $ | 279.45 | 30.3 | % | $ | 360.65 | $ | 302.71 | 19.1 | % | $ | 321.57 | $ | 279.05 | 15.2 | % | $ | 321.57 | $ | 295.42 | 8.9 | % | ||||||||||||||||||||||||
Shore Club |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
64.7 | % | 57.5 | % | 12.5 | % | 64.8 | % | 60.6 | % | 6.9 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 289.43 | $ | 255.31 | 13.4 | % | $ | 314.96 | $ | 315.54 | -0.2 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 187.26 | $ | 146.80 | 27.6 | % | $ | 204.09 | $ | 191.22 | 6.7 | % | ||||||||||||||||||||||||||||||||||||
Mondrian South Beach |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
64.1 | % | 54.5 | % | 17.6 | % | 67.4 | % | 57.3 | % | 17.6 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 240.69 | $ | 201.10 | 19.7 | % | $ | 271.23 | $ | 262.22 | 3.4 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 154.28 | $ | 109.60 | 40.8 | % | $ | 182.81 | $ | 150.25 | 21.7 | % | ||||||||||||||||||||||||||||||||||||
Ames |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
81.8 | % | 79.9 | % | 2.4 | % | 70.1 | % | 59.8 | % | 17.2 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 229.90 | $ | 217.80 | 5.6 | % | $ | 208.64 | $ | 203.04 | 2.8 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 188.06 | $ | 174.02 | 8.1 | % | $ | 146.26 | $ | 121.42 | 20.5 | % | ||||||||||||||||||||||||||||||||||||
Morgans (2) |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
92.9 | % | 94.2 | % | -1.4 | % | 85.9 | % | 90.6 | % | -5.2 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 274.40 | $ | 251.92 | 8.9 | % | $ | 256.70 | $ | 233.92 | 9.7 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 254.92 | $ | 237.31 | 7.4 | % | $ | 220.51 | $ | 211.93 | 4.0 | % | ||||||||||||||||||||||||||||||||||||
Royalton (2) |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
91.4 | % | 92.6 | % | -1.3 | % | 86.1 | % | 90.0 | % | -4.3 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 301.48 | $ | 279.54 | 7.8 | % | $ | 278.92 | $ | 260.05 | 7.3 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 275.55 | $ | 258.85 | 6.5 | % | $ | 240.15 | $ | 234.05 | 2.6 | % | ||||||||||||||||||||||||||||||||||||
Mondrian LA (2) |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
80.7 | % | 74.6 | % | 8.2 | % | 78.3 | % | 68.6 | % | 14.1 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 270.90 | $ | 258.80 | 4.7 | % | $ | 271.97 | $ | 264.40 | 2.9 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 218.62 | $ | 193.06 | 13.2 | % | $ | 212.95 | $ | 181.38 | 17.4 | % | ||||||||||||||||||||||||||||||||||||
System-wide Comparable Hotels |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
80.8 | % | 77.3 | % | 4.5 | % | 80.8 | % | 77.3 | % | 4.5 | % | 76.7 | % | 73.2 | % | 4.8 | % | 76.7 | % | 73.2 | % | 4.8 | % | ||||||||||||||||||||||||
ADR |
$ | 278.67 | $ | 250.83 | 11.1 | % | $ | 278.22 | $ | 254.28 | 9.4 | % | $ | 273.11 | $ | 258.86 | 5.5 | % | $ | 273.11 | $ | 261.36 | 4.5 | % | ||||||||||||||||||||||||
RevPAR |
$ | 225.17 | $ | 193.89 | 16.1 | % | $ | 224.80 | $ | 196.56 | 14.4 | % | $ | 209.48 | $ | 189.49 | 10.5 | % | $ | 209.48 | $ | 191.32 | 9.5 | % | ||||||||||||||||||||||||
Mondrian SoHo (3) |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
84.3 | % | 0.0 | % | n/m | 77.2 | % | 0.0 | % | n/m | ||||||||||||||||||||||||||||||||||||||
ADR |
$ | 297.31 | $ | | n/m | $ | 285.44 | $ | | n/m | ||||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 250.63 | $ | | n/m | $ | 220.36 | $ | | n/m | ||||||||||||||||||||||||||||||||||||||
San Juan Water and Beach Club (4) |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
61.2 | % | 64.5 | % | -5.1 | % | 69.1 | % | 68.2 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | 121.36 | $ | 123.52 | -1.7 | % | $ | 131.28 | $ | 143.63 | -8.6 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | 74.27 | $ | 79.67 | -6.8 | % | $ | 90.71 | $ | 97.96 | -7.4 | % | ||||||||||||||||||||||||||||||||||||
Hotel Las Palapas (4) |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
59.5 | % | 47.5 | % | 25.3 | % | 59.5 | % | 47.5 | % | 25.3 | % | 73.2 | % | 62.9 | % | 16.4 | % | 73.2 | % | 62.9 | % | 16.4 | % | ||||||||||||||||||||||||
ADR |
$ | 138.78 | $ | 130.88 | 6.0 | % | $ | 136.74 | $ | 138.27 | -1.1 | % | $ | 153.03 | $ | 148.05 | 3.4 | % | $ | 153.03 | $ | 157.79 | -3.0 | % | ||||||||||||||||||||||||
RevPAR |
$ | 82.57 | $ | 62.17 | 32.8 | % | $ | 81.36 | $ | 65.68 | 23.9 | % | $ | 112.02 | $ | 93.12 | 20.3 | % | $ | 112.02 | $ | 99.25 | 12.9 | % | ||||||||||||||||||||||||
Hard Rock (5) |
||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy |
0.0 | % | 81.8 | % | -100.0 | % | 80.7 | % | 79.7 | % | 1.3 | % | ||||||||||||||||||||||||||||||||||||
ADR |
$ | | $ | 145.52 | -100.0 | % | $ | 128.31 | $ | 130.28 | -1.5 | % | ||||||||||||||||||||||||||||||||||||
RevPAR |
$ | | $ | 119.04 | -100.0 | % | $ | 103.55 | $ | 103.83 | -0.3 | % |
(1) | Not included in the above table are discontinued operations. |
|
(2) | MHG sold these hotels in May 2011 and continues to manage the hotels pursuant to long-term
management agreements. |
|
(3) | MHG opened and began managing this hotel in February 2011. Statistics are for the period MHG
operated the hotel. |
|
(4) | As these hotels are not Morgans Hotel Group branded hotels, MHG believes that the hotel
operating data for these hotels does not provide a meaningful depiction of the performance of its
branded hotels. Effective July 13, 2011, the Company no longer operates the San Juan Water and
Beach Club. |
|
(5) | MHG ceased managing this hotel on March 1, 2011. Statistics for the six months ended June 30,
2011 are for the period MHG managed the hotel. In addition, as customary in the gaming industry,
average occupancy and average daily rate for the Hard Rock are presented including rooms provided
on a complimentary basis which is not the practice in the lodging industry. |
Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA
We believe that earnings before interest, income taxes, depreciation and amortization (EBITDA) is a
useful financial metric to assess our operating performance before the impact of investing and
financing transactions and income taxes. It also facilitates comparison between us and our
competitors. Given the significant investments that we have made in the past in property and
equipment, depreciation and amortization expense comprises a meaningful portion of our cost
structure. We believe that EBITDA will
provide investors with a useful tool for assessing the comparability between periods because it
eliminates depreciation and amortization expense attributable to capital expenditures.
The Companys management has historically used adjusted EBITDA (Adjusted EBITDA) when evaluating
the operating performance for the entire Company as well as for individual properties or groups of
properties because we believe the Companys core business model is that of an owner and operator of
hotels, and the inclusion or exclusion of certain items is necessary to provide the most accurate
measure of on-going core operating results and to evaluate comparative results period over period.
As such, Adjusted EBITDA excludes other non-operating expenses (income) that do not relate to the
on-going performance of our assets and excludes the operating performance of assets in which we do
not have a direct or indirect fee simple ownership interest. We exclude the following items from
EBITDA to arrive at Adjusted EBITDA:
| Other non-operating expenses (income), such as executive terminations not related to
restructuring initiatives, costs of financings, litigation and settlement costs and other
items such as proceeds from the sale of condominium units and related costs that relate to
the financing and investing activities of our assets and not to the on-going operating
performance of our assets, both consolidated and unconsolidated, and changes in fair market
value of the warrants issued to investors in the Company; |
| Restructuring, development and disposal costs: these charges primarily relate to losses
on asset disposals as part of major renovation projects, the write-off of abandoned
development projects resulting primarily from events generally outside managements control
such as the tightening of credit markets, and severance costs related to restructuring
initiatives. We believe that these charges do not relate to the ongoing operating
performance of our assets as measured by Adjusted EBITDA. |
| Impairment loss on development projects, hotels, investments in joint ventures and
receivables from joint ventures: these charges do not relate to the ongoing operating
performance of our assets as measured by Adjusted EBITDA. To the extent that economic
conditions do not continue to improve, we may incur additional non-cash impairment charges
related to assets under development, wholly-owned assets, or investments in joint ventures.
We believe these adjustments are necessary to provide the most accurate measure of core
operating results as a means to evaluate comparative results. |
| The EBITDA related to leased hotels to more accurately reflect the operating performance
of assets in which we have a direct or indirect fee simple ownership interest; |
| The EBITDA related to hotels reported as discontinued operations to more accurately
reflect the operating performance of assets in which we expect to have an ongoing direct or
indirect ownership interest; and |
| Stock-based compensation expense, as this is not necessarily an indication of the
operating performance of our assets. |
We also make an adjustment to EBITDA for hotels in which our percentage ownership interest has
changed to facilitate period-over-period comparisons and to more accurately reflect the operating
performance of assets based on our actual ownership. In this respect, our method of calculating
Adjusted EBITDA has changed from prior quarters, and calculations of Adjusted EBITDA will continue
to vary from quarter to quarter to reflect changing ownership interests.
We believe Adjusted EBITDA provides management and our investors with a more accurate financial
metric by which to evaluate our performance as it eliminates the impact of costs incurred related
to investing and financing transactions. Internally, the Companys management utilizes Adjusted
EBITDA to measure the performance of our core on-going hotel operations and is used extensively
during our annual budgeting process. Management also uses Adjusted EBITDA as a measure in
determining the value of acquisitions, expansion opportunities, and dispositions and borrowing
capacity. Adjusted EBITDA is a key metric which management evaluates prior to execution of any
strategic investing or financing opportunity.
The Company has historically reported Adjusted EBITDA to its investors and believes that this
continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables
investors to perform more meaningful comparisons of past, present and future operating results and
to evaluate the results of its core on-going operations.
The use of EBITDA and Adjusted EBITDA has certain limitations. Our presentation of EBITDA and
Adjusted EBITDA may be different from the presentation used by other companies and therefore
comparability may be limited. Depreciation expense for various long-term assets, interest expense,
income taxes and other items have been and will be incurred and are not reflected in the
presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the
overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not reflect capital
expenditures and other investing activities and should not be considered as a measure of our
liquidity. We compensate for these limitations by providing the relevant disclosure of our
depreciation, interest and income tax expense, capital expenditures and other items both in our
reconciliations to our GAAP financial measures and in our consolidated financial statements, all of
which should be considered when evaluating our performance. The term EBITDA is not defined under
accounting principles generally accepted in the United States, or U.S. GAAP, and EBITDA is not a
measure of net income, operating income, operating performance or liquidity presented in accordance
with U.S. GAAP. In addition, EBITDA is impacted by reorganization of businesses and other
restructuring-related charges. When assessing our operating performance, you should not consider
this data in isolation, or as a substitute for our net income, operating income or any other
operating performance measure that is calculated in accordance with U.S. GAAP. In addition, our
EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies
since such other companies may not calculate EBITDA in the same manner as we do.
A reconciliation of net income (loss), the most directly comparable U.S. GAAP measures, to EBITDA
and Adjusted EBITDA for each of the respective periods indicated is as follows:
EBITDA Reconciliation
(In thousands)
(In thousands)
Three Months | Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net loss attributable to Morgans Hotel Group Co. |
$ | (11,424 | ) | $ | (21,071 | ) | $ | (43,467 | ) | $ | (37,031 | ) | ||||
Interest expense, net |
10,014 | 12,389 | 19,008 | 24,739 | ||||||||||||
Income tax expense |
428 | 279 | 293 | 573 | ||||||||||||
Depreciation and amortization expense |
4,199 | 8,011 | 12,572 | 15,356 | ||||||||||||
Proportionate share of interest expense
from unconsolidated joint ventures |
1,905 | 3,496 | 4,716 | 7,371 | ||||||||||||
Proportionate share of depreciation expense
from unconsolidated joint ventures |
1,386 | 2,170 | 3,578 | 5,611 | ||||||||||||
Proportionate share of depreciation expense
of noncontrolling interests in consolidated joint ventures |
(85 | ) | (89 | ) | (183 | ) | (179 | ) | ||||||||
Net income attributable to noncontrolling interest |
(369 | ) | (690 | ) | (1,411 | ) | (1,218 | ) | ||||||||
Proportionate share of (loss) income from unconsolidated joint
ventures not recorded due to negative investment balances |
(130 | ) | (2,407 | ) | 7,007 | (6,403 | ) | |||||||||
EBITDA |
5,924 | 2,088 | 2,113 | 8,819 | ||||||||||||
Add: Other non operating expense |
879 | 163 | 2,269 | 15,192 | ||||||||||||
Add: Other non operating expense from unconsolidated
joint ventures |
809 | 7,411 | 757 | 7,507 | ||||||||||||
Add: Restructuring, development and disposal costs |
3,800 | 1,189 | 8,393 | 1,866 | ||||||||||||
Less: EBITDA from Clift, a leased hotel |
(1,054 | ) | (53 | ) | (2,129 | ) | 22 | |||||||||
Add: Stock based compensation |
2,031 | 2,790 | 6,018 | 6,588 | ||||||||||||
Less: Gain on assets sale |
(620 | ) | | (620 | ) | | ||||||||||
Less: Loss (income) from hotel ownership changes
and discontinued operations |
5 | 228 | (485 | ) | (17,415 | ) | ||||||||||
Adjusted EBITDA |
$ | 11,774 | $ | 13,816 | $ | 16,316 | $ | 22,579 | ||||||||
Impact of Asset Sales and Terminated Joint Venture Interests: |
||||||||||||||||
Sold Hotels EBITDA (1) |
$ | 1,476 | $ | 4,048 | $ | 3,401 | $ | 5,825 | ||||||||
Sold Hotels Management Fees Post-Sale (2) |
415 | | 415 | | ||||||||||||
Hard Rock Hotel & Casino EBITDA (3) |
| 701 | 300 | 1,177 | ||||||||||||
Hard Rock Hotel & Casino Management Fees (4) |
| 2,916 | 832 | 4,875 | ||||||||||||
Impact to Adjusted EBITDA, After Asset Sales and Hard Rock |
$ | 1,891 | $ | 7,665 | $ | 21,264 | $ | 34,456 | ||||||||
(1) | Reflects the EBITDA of Mondrian Los Angeles, Royalton and Morgans, the three hotels sold by
the Company in May 2011, through their respective dates of sale. This hotel EBITDA is not reduced
by any internal management fees earned prior to the date of sale, as these are eliminated in
consolidation. |
|
(2) | Reflects the management fees earned by the Company from the date of sale of each hotel through
the end of the period. |
|
(3) | Reflects the EBITDA of the hotel for the period the Company had a minority interest.
Effective March 1, 2011, the Company no longer had an ownership interest in this hotel. |
|
(4) | Reflects the management fees earned by the Company during the period it operated the hotel.
Effective March 1, 2011, the Company ceased managing this hotel. |
Hotel EBITDA Analysis (1)
(In thousands, except percentages)
(In thousands, except percentages)
Three Months | Six Months | |||||||||||||||||||||||
Ended June 30, | % | Ended June 30, | % | |||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
Hudson |
$ | 6,106 | $ | 5,529 | 10 | % | $ | 4,176 | $ | 6,039 | -31 | % | ||||||||||||
Delano |
3,750 | 3,099 | 21 | % | 9,138 | 8,664 | 5 | % | ||||||||||||||||
Clift |
1,054 | 53 | n/m | 2,129 | (22 | ) | n/m | |||||||||||||||||
Owned Comparable Hotels |
10,910 | 8,681 | 26 | % | 15,443 | 14,681 | 5 | % | ||||||||||||||||
St Martins Lane |
1,272 | 1,295 | -2 | % | 2,339 | 2,393 | -2 | % | ||||||||||||||||
Sanderson |
1,035 | 692 | 50 | % | 1,662 | 1,363 | 22 | % | ||||||||||||||||
Shore Club |
98 | 44 | 123 | % | 237 | 251 | -6 | % | ||||||||||||||||
Mondrian South Beach |
89 | (118 | ) | -175 | % | 630 | 337 | 87 | % | |||||||||||||||
Ames |
135 | 77 | 75 | % | 30 | (140 | ) | -121 | % | |||||||||||||||
Joint Venture Comparable Hotels |
2,629 | 1,990 | 32 | % | 4,898 | 4,204 | 17 | % | ||||||||||||||||
Owned and Joint Venture Comparable Hotels |
13,539 | 10,671 | 27 | % | 20,341 | 18,885 | 8 | % | ||||||||||||||||
Morgans (2) |
24 | 412 | -94 | % | (154 | ) | 395 | -139 | % | |||||||||||||||
Royalton (2) |
638 | 518 | 23 | % | 254 | 323 | -21 | % | ||||||||||||||||
Mondrian Los Angeles (2) |
814 | 3,118 | -74 | % | 3,301 | 5,107 | -35 | % | ||||||||||||||||
Sold Hotels |
1,476 | 4,048 | -64 | % | 3,401 | 5,825 | -42 | % | ||||||||||||||||
Total System-Wide Comparable Hotels |
15,015 | 14,719 | 2 | % | 23,742 | 24,710 | -4 | % | ||||||||||||||||
Hard Rock Joint Venture (3) |
| 701 | -100 | % | 300 | 1,177 | -75 | % | ||||||||||||||||
Mondrian SoHo Joint Venture (4) |
432 | | n/m | 467 | | n/m | ||||||||||||||||||
Total Hotels |
$ | 15,447 | $ | 15,420 | 0 | % | $ | 24,509 | $ | 25,887 | -5 | % | ||||||||||||
(1) | For joint venture hotels, represents MHGs share of the respective hotels EBITDA, after
management fees. |
|
(2) | In May 2011, MHG sold these three hotels. Information is for the period MHG owned the
hotels, and is not reduced by any internal management fees earned prior to the date of sale, as
these are eliminated in consolidation. |
|
(3) | MHG had a minority ownership interest in this hotel until March 1, 2011. Information for the
six months ended June 30, 2011 is for the period MHG had an ownership interest in the hotel. |
|
(4) | This hotel opened in February 2011. Information is for the period the hotel was open. |
Owned Comparable Hotel Room Revenue Analysis
(In thousands, except percentages)
(In thousands, except percentages)
Three Months | Six Months | |||||||||||||||||||||||
Ended June 30, | % | Ended June 30, | % | |||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
Hudson |
$ | 16,326 | $ | 15,161 | 8 | % | $ | 25,467 | $ | 24,475 | 4 | % | ||||||||||||
Delano |
5,873 | 4,814 | 22 | % | 13,039 | 12,004 | 9 | % | ||||||||||||||||
Clift |
5,677 | 4,534 | 25 | % | 10,998 | 8,598 | 28 | % | ||||||||||||||||
Total Owned Comparable Hotels (1) |
$ | 27,876 | $ | 24,509 | 14 | % | $ | 49,504 | $ | 45,077 | 10 | % | ||||||||||||
Owned Comparable Hotel Revenue Analysis
(In thousands, except percentages)
(In thousands, except percentages)
Three Months | Six Months | |||||||||||||||||||||||
Ended June 30, | % | Ended June 30, | % | |||||||||||||||||||||
2011 | 2010 | Change | 2011 | 2010 | Change | |||||||||||||||||||
Hudson |
$ | 20,326 | $ | 19,230 | 6 | % | $ | 32,281 | $ | 31,163 | 4 | % | ||||||||||||
Delano |
11,928 | 10,494 | 14 | % | 25,992 | 24,780 | 5 | % | ||||||||||||||||
Clift |
8,431 | 7,447 | 13 | % | 17,181 | 14,613 | 18 | % | ||||||||||||||||
Total Owned Comparable Hotels (1) |
$ | 40,685 | $ | 37,171 | 9 | % | $ | 75,454 | $ | 70,556 | 7 | % | ||||||||||||
(1) | Does not include revenue from Royalton, Morgans or Mondrian Los Angeles for the period owned
during the quarters ended, as these hotels are no longer Owned Comparable Hotels. |
Adjusted EBITDA and Debt Analysis
(In thousands)
(In thousands)
Adjusted | ||||||||
EBITDA | ||||||||
Twelve Months | ||||||||
Ended | Outstanding Debt at | |||||||
Consolidated Operations | June 30, 2011 | June 30, 2011 | ||||||
Hudson |
$ | 15,569 | $ | 233,769 | ||||
Management Fees |
15,510 | |||||||
Corporate Expenses |
(23,879 | ) | ||||||
Other Debt (1) |
| 215,106 | ||||||
Total |
$ | 7,200 | 448,875 | |||||
Less: Cash |
(109,593 | ) | ||||||
Net Debt |
$ | 339,282 | ||||||
(1) | Includes outstanding debt on convertible notes and trust preferred securities and excludes the
lease obligation at Clift. |
Proportionate | ||||||||||||
Share of | ||||||||||||
Adjusted EBITDA | Proportionate | |||||||||||
Twelve Months | Share of | |||||||||||
Ownership | Ended | Debt | ||||||||||
Joint Venture Comparable Hotels (1) | Percentage | June 30, 2011 | June 30, 2011 | |||||||||
Sanderson and St. Martins Lane |
50 | % | $ | 10,084 | $ | 79,600 | ||||||
Shore Club |
7 | % | 204 | 8,364 | ||||||||
Mondrian South Beach |
50 | % | 385 | 44,840 | ||||||||
Ames |
31 | % | 284 | 14,173 |
(1) | Includes information only for System-Wide Comparable Hotels that are owned by joint ventures.
Mondrian SoHo, which opened in February 2011, is not a System-Wide Comparable Hotel. At June 30,
2011, MHGs proportionate share of third party debt on Mondrian SoHo is $39.8 million. |
Balance Sheets
(In thousands)
(In thousands)
June 30, | Dec 31, | |||||||
2011 | 2010 | |||||||
ASSETS: |
||||||||
Property and equipment, net |
$ | 283,493 | $ | 291,078 | ||||
Goodwill |
54,057 | 53,691 | ||||||
Investments in and advances to unconsolidated joint ventures |
20,571 | 20,450 | ||||||
Assets held for sale, net |
| 194,964 | ||||||
Investment in property held for non-sale disposition, net |
| 9,775 | ||||||
Cash and cash equivalents |
109,593 | 5,250 | ||||||
Restricted cash |
22,280 | 28,783 | ||||||
Accounts receivable, net |
6,776 | 6,018 | ||||||
Related party receivables |
5,393 | 3,830 | ||||||
Prepaid expenses and other assets |
9,098 | 7,007 | ||||||
Deferred tax asset, net |
80,404 | 80,144 | ||||||
Other, net |
12,697 | 13,786 | ||||||
Total assets |
$ | 604,362 | $ | 714,776 | ||||
LIABILITIES and STOCKHOLDERS DEFICIT: |
||||||||
Debt and capital lease obligations, net |
$ | 534,865 | $ | 558,779 | ||||
Mortgage debt of property held for non-sale disposition |
| 10,500 | ||||||
Accounts payable and accrued liabilities |
26,656 | 23,604 | ||||||
Debt obligations, accounts payable and accrued liabilities of assets held for sale |
| 107,161 | ||||||
Accounts payable and accrued liabilities of property held for non-sale disposition |
| 1,162 | ||||||
Distributions and losses in excess of investment in unconsolidated joint ventures |
| 1,509 | ||||||
Deferred gain on asset sales |
79,878 | | ||||||
Other liabilities |
14,260 | 13,866 | ||||||
Total liabilities |
655,659 | 716,581 | ||||||
Total Morgans Hotel Group Co. stockholders deficit |
(60,467 | ) | (12,721 | ) | ||||
Noncontrolling interest |
9,170 | 10,916 | ||||||
Total stockholders deficit |
(51,297 | ) | (1,805 | ) | ||||
Total liabilities and stockholders deficit |
$ | 604,362 | $ | 714,776 | ||||