Morgans/Hudson Venture Pays $110Mln for Miami Apartments, Plans Hotel Conversion

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A joint venture between Morgans Hotel Group Co. and an affiliate of Hudson Capital has paid $110 million for a Miami apartment property that will be converted into a 342-room hotel.

Upon completion of the $60 million transformation, the hotel will be the fourth property to operate under Morgans' Mondrian brand. The other hotels are in Los Angeles, Scottsdale, Ariz., and Las Vegas. Morgans will oversee the hotel's management.

The Morgans/Hudson Capital venture will fund the purchase and renovations with $124 million in financing provided by Eurohypo AG. The financing carries a rate of 300 basis points over Libor.

The 16-story Mondrian will have a mix of studios, one- and two-bedroom rooms, and four penthouse suites. The venture could sell the units as hotel condominiums. Amenities include restaurants, meeting and event space, a spa, and boat slips for guests to park yachts and sailboats.