Morgans secures financing for Mondrian SoHo, opening delayed

NEW YORK CITY Morgans Hotel Group Co. has procured the additional funding needed to complete development of Mondrian in SoHo, but the opening of the much-anticipated property has been pushed back from November to January. 

Morgans has a 10-year management contract with two 10-year extension options to operate the hotel upon completion. 

MHG also announces that the parties have amended the debt financing on the property to provide for extensions of the maturity date of the mortgage loan secured by the hotel for up to five years with extension options.

Additionally, subsidiaries of CapitalSource Inc.—Morgans’ joint-venture partner—is making cash and other contributions to the joint venture, and Morgans will provide up to US$3.2 million of additional funds to complete the project. Morgans’ contribution will be treated as a loan with priority over the equity. 

“The additional funding allows us and our partner to focus our attention and resources on completing this spectacular new hotel in downtown New York,” says Morgans President Marc Gordon. “We appreciate the support of CapitalSource, which recognized the strong appeal and long-term value of this hotel, and our unique ability to maximize its potential.”   

Mondrian in SoHo will be the third Mondrian and will mark the debut of Morgans in downtown New York. Designed by Benjamin Noriega Ortiz, the hotel aims to present a unique SoHo style and hotel experience. Chef Sam Talbot will introduce his interpretation of modern East Coast seafood, and the bar will offer a selection of custom-designed cocktails. 

According to, Morgans has raised the room rates considerably prior to opening—whereas opening rates had previously started at US$374, the hotel’s website now lists rates from US$489.

Rendering of a guestroom at Mondrian in SoHo
Rendering of a guestroom at Mondrian in SoHo