Morgan Hotel Group (MHGC) “owns” several heavily mortgaged hotels, operates a few more, and is involved in several others as joint ventures. These properties are generally high end independent hotels, which is the single worst performing segment of the very weak lodging industry. In the most recent quarter, MHGC’s Revenue per Available Room plummeted 39.5%, by contrast for the overall hotel industry this metric was around -20%. MHGC’s hotels are suffering from severe double whammy: less overall travel and substitution from high-end to mid-priced and business class hotels
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http://seekingalpha.com/article/156544-morgans-hotel-a-zombie-company-bleeding-cash-and-defaulting-on-loans?source=yahoo
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