Looks like all that shiny new stuff at Mandalay Bay is going to be under a new umbrella, because Morgans has gone in for a debt-canceling asset swap with The Yucaipa Companies that transfers ownership of Delano South Beach and The Light Group to the latter. Yucaipa managing partner Ron Burkle already has a significant stake in, and sits on the board of, Morgans.
Light Group declined to comment on the transaction.
Morgans will still be converting THEhotel to Delano Las Vegas, and will retain a management agreement for South Beach, but it’s pocketing $6.5 million for the company’s leasehold interests in Red Square, Citizens and Kumi, which is the new Japanese restaurant helmed by Chef Toshiyuki Motoyama, taking the place of China Grill. Motoyama was the sushi chef at South Beach’s Umi. Light Group also tipped an opening for new beach club Daylight, which will bow on May 25.