But What Does All This Mean for The Morgans Hotel Group?
According to the Wall Street Journal, the company laid off one-third of its workforce, including 20 top executives and longtime employees. Clearly, this was done to save money and indeed Jason Kalisman, the acting CEO and chairman of Morgans (who spent a good portion of last year tussling with Ron Burkle) publicly said last month the company was going to "reduce costs and corporate overhead."
Meanwhile, after losing the Delano Marrakech and The Ames in Boston, not to mention an ongoing feud with the owners of the Mondrian Soho, the hotels of Morgans Hotel Group seem to be business as usual. We hopped over to the Morgans site today and saw that plans for the Delano Las Vegas were still intact, as were the plans for the Mondrian Bahia Mar in the Bahamas and the Mondrian London.
We also noticed quite a few expansions for the Mondrian and Delano brands. But will they actually happen? It looks like Morgans is trying hard to clean up its act and find a sure footing again but only time will tell.