Morgans Hotel Group Co
Wednesday, April 23, 2014
Wednesday, April 23, 2014
NEW YORK, April 23, 2014 /PRNewswire/ — Morgans Hotel Group Co. (NASDAQ: MHGC) (“Morgans” or the “Company”), theNew York-based hospitality management company, announced that it has filed with the U.S. Securities and Exchange Commission an investor presentation that it will be using with stockholders in advance of its Annual Meeting to be held on May 14, 2014. On April 22, 2014, the Board of Directors also voted to redeem the Company’s Stockholder Protection Rights Plan.
The presentation discusses in detail the significant progress Morgans’ Board has overseen in only ten months since stockholders overwhelmingly voted for change to the Company’s leadership. The presentation also outlines why the slate put forth by Kerrisdale Capital Management introduces unnecessary and substantial risk to the Company’s future by disrupting key value creating initiatives currently underway.
Among other things, the presentation highlights the numerous ways in which Morgans’ Board has delivered on its promises, including restructuring the Company’s highly leveraged legacy balance sheet, reducing a bloated cost structure, properly executing on the Company’s asset-light, brand focused strategy, and improving accountability at the board level all while focusing on the details of running the Company.
Jason T. Kalisman, Morgans’ Chairman of the Board, said, “As a result of the current Board’s efforts, Morgans Hotel Group is in a much stronger and more stable position than it was a year ago, both financially and operationally. Kerrisdale’s single issue agenda, which is based solely on selling the Company seemingly at any price, runs the enormous risk of permanently impairing stockholder value. Kerrisdale’s most recent patchwork solution, upon realizing the severe limitations of their slate, was to retain a direct competitor and entity affiliated with the Yucaipa Companies. This decision is a glaring indication of Kerrisdale’s lack of interest in representing all stockholders as they have knowingly, or unwittingly, advocated for a group that has no interest in maximizing value for all stockholders.”
Kalisman added, “As fiduciaries, the current Board is constantly exploring opportunities to do what is right in the short and longer-term for stockholders, but only at the right time and the right price. The improvements the Board is making, including the recent decision to redeem the Rights Plan, will allow Morgans to consider and pursue a broad range of business opportunities and strategic alternatives from a position of strength and flexibility. We urge all stockholders to vote the WHITE proxy card today.”
The full presentation is available at ProtectValueatMorgans.com.
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 industry’s boutique sector. Morgans Hotel Group operates Delano in South Beach, Mondrian in Los Angeles,New York and South Beach, Hudson in New York, Morgans and Royalton in New York, Clift in San Francisco, Shore Club in South Beach and Sanderson and St Martins Lane in London. Morgans Hotel Group has ownership interests or owns several of these hotels. Morgans Hotel Group has other hotels in various stages of development to be operated under management or franchise agreements. These include Delano properties in Las Vegas, Nevada and Moscow, Russia; Mondrian properties in Baha Mar in Nassau, The Bahamas, London, England, and Doha, Qatar; and a Morgans Original in Istanbul, Turkey. Morgans Hotel Group also owns a 90% controlling interest in The Light Group, a leading lifestyle food and beverage company. For more information please visit morganshotelgroup.com.
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