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Morgans Hotel Group

Morgans Hotel Group

The hotel group that currently runs stylish and high-end hotels in the US and UK, has just announced plans of building a hotel in Dubai.


September 9, 2008 6:04 by

In January 2006, MHG entered into a 50/50 joint venture with the Boyd Gaming Corporation, to develop a Mondrian and a Delano within Boyd’s Echelon development on the Las Vegas strip. The $4.75bn Echelon development was scheduled to open in the third quarter of 2010.

On July 1 this year, MHG announced that the deadline to obtain construction financing for the Echelon joint venture was available till September 15, 2008.
Just a month later, Boyd said that it would delay the entire project because of the current economic conditions.

After that announcement, MHG said that it believed that the joint venture would be unable to get financing at favorable rates, and it does not want to extend the agreement on its current terms. As a result, the group expects to get a return of its $30m deposit related to the Echelon project.

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