Posted by Mark J. Miller on November 28, 2011 02:14 PM
Morgans Hotel Group pulled out of its minority stake in the Las Vegas Hard Rock Hotel & Casino back in March, but the company can’t seem to stay away from the gambling capital.
This time around, though, the company that owns 13 hotels, such as New York’s Hudson Hotel and the Delano in Miami's South Beach, is going into Vegas by buying a 90% stake in Vegas nightclub operator the Light Group for around $47 million, according to the Las Vegas Review-Journal.
Nightlife is a key component in Morgans' brand reputation.
"We want to provide dynamic experiences for our guest in every property," company CEO Michael Gross told Wall Street analysts in its third-quarter earnings call, USA Today reports. "It's essential to enhancing the reputation of our properties both in the eyes of guests and hotel owners."
With the food and beverage portion of the hotel business down, Gross is hoping its entry into the nightclub arena helps turn that around. Morgans also “recently ended its affiliation with its former food partner China Grill,” USA Today adds. Now, one of the Light Group’s first assignments is "revamping the restaurant, bar and nightlife operations at the Delano."