Morgans Hotel Group Acquires Remaining Equity and Control of Food and Beverage JVs for $20M

Morgans Hotel Group Co.

announced today that it has acquired the remaining 50% interests that it does not already own in its food and beverage joint ventures from China Grill Management for approximately $20 million. Additionally, the Company converted CGM's long-term management arrangements to short-term cancellable management agreements for each property. Pursuant to these short-term agreements, CGM will continue to manage the operations for a transitional period while MHG reassesses its food and beverage strategy.