Hogan Lovells Advises Morgans Hotel Group and Walton Street Capital on £192m Sale of St Martins Lane and Sanderson Hotels
10 October 2011
LONDON, 10 October 2011 - Hogan Lovells has advised Morgans Hotel Group Co. (MHG) and Walton Street Capital (WSC) on the sale of the St Martins Lane and Sanderson hotels in London for £192 million to Capital Hill Hotels Limited in a deal that signed on Friday 7 October.
MHG, creator of the first “boutique” hotel and a continuing leader of the hotel industry’s boutique sector, is the operator and 50% owner of the London joint venture with WSC that owns Sanderson and St Martins Lane and will continue to operate the hotels under long-term management agreements.
The proceeds of the sale, expected to close in the fourth quarter, will be used to retire the outstanding mortgage debt secured by the two hotels, with net proceeds being used to provide capital for growth.
The Hogan Lovells team advising MHG and WSC on the sale was led by London corporate partner Nigel Read, assisted on corporate matters by senior associate Roderick Lai and associate Hazel Peck; on real estate matters by partner Jackie Newstead and senior associates Jill Pittaway and Nicholas Roberts; and on tax matters by partner Karen Hughes and associate Matthew Legg.
Commenting on the transaction, Nigel said:
"We are pleased to have advised Morgans Hotel Group and Walton Street Capital on the sale of these important London assets. It is encouraging that the M&A market for "boutique hotels" in London remains strong, notwithstanding the current uncertain economic climate."
Hogan Lovells’ leading international hotels, leisure and gaming practice is comprised of lawyers with extensive industry experience and knowledge of hotel and resort acquisitions, sales, development, management and operations; equity and debt capital structures; joint ventures, and other ownership entity formation, and related business, tax, and operating representation.
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