Dec. 1 (Bloomberg) -- Morgans Hotel Group Co. agreed to operate a 360-room London hotel that will be the first Mondrian location in Europe as the company expands its management business.
The hotel will be at Sea Containers on the South Bank near the River Thames, New York-based Morgans said in a statement today. The 412,000-square-foot (38,000-square-meter) office building is being converted into a mixed-use development, with the hotel scheduled to open in early 2014.
Morgans, operator of Delano South Beach in Miami Beach, Florida, and Royalton New York, has been selling some properties and using proceeds to expand its management business. The company last month acquired control of Light Group, an operator of restaurants and nightclub bars, for about $46.5 million to enhance its hotel-management business.
“Sea Containers is an exceptional property in a key gateway city,” Chief Executive Officer Michael Gross said in the statement. “We believe the Mondrian brand has unique appeal and significant potential for global expansion."
Morgans plans to invest about $15 million in the London development, which will be the sixth Mondrian. The hotelier has a 25-year management agreement and two 10-year extension options for the property.
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