Morgans Hotel Group – which includes a portfolio of 13 owned, operated or licensed hotel properties – will be acquired by Los Angeles hospitality company SBE.

Morgans properties are in London, Los Angeles, New York, Miami, San Francisco, Las Vegas and Istanbul, and include the iconic Hudson New York, Mondrian Los Angeles and Delano South Beach. A pioneer in the boutique hotel business, the company was founded in 1984 by Ian Schrager and is based in New York.

SBE is a lifestyle hospitality company that develops, manages and operates restaurants, nightclubs and hotels, including the SLS, Hyde and Redbury hotels. It is acquiring Morgans for US$2.25 per share in cash, and – with the assumption of debt and transfer of capitalised leases – the total enterprise value of the deal is about US$794m (€697m, £549m), Morgans said.

The deal is expected to close in the third or fourth quarter, pending regulatory approvals.

Morgans recently launched a series of wellness and mindfulness programmes across its properties.