NEW YORK CITY Morgans Hotel Group is in the process of “re-concepting” several food and beverage venues to improve profitability.
Morgans in May opened a new restaurant at Hudson called Hudson Hall, and the company in July closed the restaurant at Royalton for a renovation and concept change. Royalton’s new restaurant and expanded bar will open in September, in time for New York’s Fashion Week.
Morgans made the disclosures in its second-quarter earnings statement, in which it reported that RevPAR increased by 13.3% over 2009, led by a 23.1% increase across its New York portfolio. The RevPAR gains were driven by a 9.2% increase in occupancy and a 3.8% increase in ADR.
Still, Morgans recorded a net loss of US$21.1 million in the second quarter, more than double the US$10.1 million loss it incurred a year ago. The loss was due in large part to a US$8.3 million impairment charge related to the Mondrian in SoHo, which had its opening pushed back from November to January.