Morgans Hotel Group (MHG) has sold a 50% stake of the joint venture owning its London properties, the Sanderson and St Martins Lane hotels, to US-owned real estate investment company Walton Street.
Walton Street has bought MHG's previous partner Burford Hotel's joint venture interest for $52m (£26.5m).
For facilitating the transaction, MHG received more than $6m (£3m) in cash, based on excess working capital levels at the joint venture. It could receive more cash in the event of a debt refinancing.
Ed Scheetz, president and chief executive officer at MHG, welcomed the deal.
"We are pleased that another institutional investor of the quality and stature of Walton Street believes in the strength of our management and the quality of our brands," he aid.
MHG recently opened boutique hotel Mondrian in Scottsdale, Arizona, USA.
By Kerstin Kühn
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