0000950123-11-048971.txt : 20110511 0000950123-11-048971.hdr.sgml : 20110511 20110511172911 ACCESSION NUMBER: 0000950123-11-048971 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20110511 DATE AS OF CHANGE: 20110511 GROUP MEMBERS: HG VORA CAPITAL MANAGEMENT, LLC GROUP MEMBERS: HG VORA SPECIAL OPPORTUNITIES FUND LP GROUP MEMBERS: HG VORA SPECIAL OPPORTUNITIES MASTER FUND, LTD. GROUP MEMBERS: PARAG VORA SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Morgans Hotel Group Co. CENTRAL INDEX KEY: 0001342126 STANDARD INDUSTRIAL CLASSIFICATION: HOTELS & MOTELS [7011] IRS NUMBER: 161736884 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-81634 FILM NUMBER: 11833003 BUSINESS ADDRESS: STREET 1: 475 TENTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10018 BUSINESS PHONE: 212-277-4100 MAIL ADDRESS: STREET 1: 475 TENTH AVENUE CITY: NEW YORK STATE: NY ZIP: 10018 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: HG Vora Special Opportunities Fund LP CENTRAL INDEX KEY: 0001463933 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: C/O HG VORA (GP), LLC STREET 2: 870 SEVENTH AVENUE, 2ND FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 212-707-4300 MAIL ADDRESS: STREET 1: C/O HG VORA (GP), LLC STREET 2: 870 SEVENTH AVENUE, 2ND FLOOR CITY: NEW YORK STATE: NY ZIP: 10019 SC 13D/A 1 c17090sc13dza.htm SCHEDULE 13D/A Schedule 13D/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13D

Under the Securities Exchange Act of 1934
(Amendment No. 5)*

Morgans Hotel Group Co.
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
617748W108
(CUSIP Number)
Philip Garthe
HG Vora Capital Management, LLC
870 Seventh Avenue, Second Floor
New York, NY 10019
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)

Copy to:

Thomas C. Janson
Milbank, Tweed, Hadley & McCloy LLP
One Chase Manhattan Plaza
New York, NY 10005
(212) 530-5921

May 11, 2011
(Date of Event Which Requires Filing of this Statement)

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. o

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

* The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 
 

 

                     
CUSIP No.
  
617748W108 
  

 

           
1   NAMES OF REPORTING PERSONS

HG Vora Special Opportunities Master Fund, Ltd.
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
  (a)   þ 
  (b)   o 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Cayman Islands
       
  7   SOLE VOTING POWER
     
NUMBER OF   378,977
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   378,977
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   378,977
       
WITH 10   SHARED DISPOSITIVE POWER
     
    378,977
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  378,977
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  1.25%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  OO (Cayman Islands exempted company)

 

                     
CUSIP No.
  
617748W108 
  

 

           
1   NAMES OF REPORTING PERSONS

HG Vora Special Opportunities Fund LP
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
  (a)   þ 
  (b)   o 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  WC
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Delaware
       
  7   SOLE VOTING POWER
     
NUMBER OF   884,278
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   884,278
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   884,278
       
WITH 10   SHARED DISPOSITIVE POWER
     
    884,278
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  884,278
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  2.91%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  PN

 

                     
CUSIP No.
  
617748W108 
  

 

           
1   NAMES OF REPORTING PERSONS

HG Vora Capital Management, LLC
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
  (a)   þ 
  (b)   o 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  AF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  Delaware
       
  7   SOLE VOTING POWER
     
NUMBER OF   1,263,255
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   1,263,255
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   1,263,255
       
WITH 10   SHARED DISPOSITIVE POWER
     
    1,263,255
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  1,263,255
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  4.15%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  PN

 

                     
CUSIP No.
  
617748W108 
  

 

           
1   NAMES OF REPORTING PERSONS

Parag Vora
     
     
2   CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
  (a)   þ 
  (b)   o 
     
3   SEC USE ONLY
   
   
     
4   SOURCE OF FUNDS (SEE INSTRUCTIONS)
   
  AF
     
5   CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)
   
  o
     
6   CITIZENSHIP OR PLACE OF ORGANIZATION
   
  USA
       
  7   SOLE VOTING POWER
     
NUMBER OF   1,263,255
       
SHARES 8   SHARED VOTING POWER
BENEFICIALLY    
OWNED BY   1,263,255
       
EACH 9   SOLE DISPOSITIVE POWER
REPORTING    
PERSON   1,263,255
       
WITH 10   SHARED DISPOSITIVE POWER
     
    1,263,255
     
11   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
   
  1,263,255
     
12   CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
   
  o
     
13   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
   
  4.15%
     
14   TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
   
  IN

 

Item 1. Security and Issuer.
This Amendment No. 5 to Schedule 13D (“this Schedule 13D”) relates to the Common Stock, par value $0.01 per share (the “Common Stock”), of Morgans Hotel Group Co., a Delaware corporation (the “Issuer”). The address of the principal executive office of the Issuer is 475 Tenth Avenue, New York, New York 10018.
As a result of the transactions disclosed in this Schedule 13D, the Reporting Persons (as defined below) beneficially own less than 5% of the outstanding Common Stock of the Issuer. Consequently, this Schedule 13D constitutes an exit filing, and the related reporting obligations for the Reporting Persons relating to the Common Stock of the Issuer have ceased.
Item 2. Identity and Background.
This Schedule 13D amends and supplements the Schedule 13D filed with the Securities and Exchange Commission (the “SEC”) on June 1, 2010 (the “Original Schedule 13D”), as subsequently amended by Amendment No. 1 to Schedule 13D filed with the SEC on November 15, 2010 (“Amendment No. 1”), as subsequently amended by Amendment No. 2 to Schedule 13D filed with the SEC on February 14, 2011 (“Amendment No. 2”), as subsequently amended by Amendment No. 3 to Schedule 13D filed with the SEC on February 17, 2011 (“Amendment No. 3”), as subsequently amended by Amendment No. 4 to Schedule 13D filed with the SEC on March 24, 2011 (“Amendment No. 4”, and with Amendment No. 3, Amendment No.2, Amendment No. 1 and the Original Schedule 13D, the “Previous Schedule 13D”), by (i) HG Vora Special Opportunities Master Fund Ltd., a Cayman Islands exempted company (the “Offshore Fund”); (ii) HG Vora Special Opportunities Fund LP, a Delaware limited partnership (the “Domestic Fund” and, together with the Offshore Fund, the “Funds”); (iii) HG Vora Capital Management, LLC, a Delaware limited liability company (the “Manager”), as investment manager of the Offshore Fund and the Domestic Fund; and (iv) Mr. Parag Vora (“Mr. Vora”), as managing member of the Manager, with respect to the common stock, par value $0.01 per share (the “Common Stock”), of Morgans Hotel Group Co., a Delaware corporation (the “Issuer”). The foregoing persons are hereinafter collectively referred to as the “Reporting Persons.” Any disclosures herein with respect to persons other than the Reporting Persons are made on information and belief after making inquiry to the appropriate party. Except as set forth herein, the Previous Schedule 13D is unmodified.
The Reporting Persons are making this single, joint filing because they may be deemed to constitute a “group” within the meaning of Section 13(d)(3) of the Act. The agreement among the Reporting Persons to file jointly (the “Joint Filing Agreement”) is attached hereto as Exhibit 1.
All voting and dispositive decisions for the Offshore Fund and the Domestic Fund have been delegated to the Manager. In such capacity, the Manager may be deemed to beneficially own the securities directly owned by the Funds. Mr. Vora is the managing member of the Manager. As such, Mr. Vora may be deemed to beneficially own the securities reported herein. Neither the Manager nor Mr. Vora directly own any shares of Common Stock. The Manager and Mr. Vora expressly disclaim beneficial ownership of the securities reported in this Schedule 13D.
Item 3. Source and Amount of Funds and Other Consideration.
The Funds have acquired beneficial ownership of an aggregate of 1,263,255 shares of Common Stock for $7,091,210 using either working capital from the Funds or the proceeds of sales of Common Stock or margin loans under margin loan facilities maintained in the ordinary course of business by the Funds with a broker on customary terms and conditions. This amount is exclusive of commissions and takes into account the cost of all shares disclosed as beneficially owned in this Schedule 13D.

 

 

 

Item 5. Interest in Securities of the Issuer.
Items 5(a) – (c) of the Previous Schedule 13D are hereby amended and restated as follows:
(a) and (b). Set forth below is the beneficial ownership of shares of Common Stock of the Issuer for each person named in Item 2.
  1.   Offshore Fund — 378,977 shares of Common Stock, which represents 1.25% of the Issuer’s outstanding Common Stock.
  2.   Domestic Fund — 884,278 shares of Common Stock, which represents 2.91% of the Issuer’s outstanding Common Stock.
  3.   Manager — 1,263,255 shares of Common Stock, which represents 4.15% of the Issuer’s outstanding Common Stock.
  4.   Parag Vora — 1,263,255 shares of Common Stock, which represents 4.15% of the Issuer’s outstanding Common Stock.
All percentages set forth in this Schedule 13D are based upon the Issuer’s reported 30,421,363 outstanding shares of Common Stock as of May 6, 2011, as reported in the Issuer’s Form 10-Q for the quarterly period ended March 31, 2011.
(c). Since the filing of Amendment No. 4, the following describes the Reporting Persons’ purchase and sale activity in shares of Common Stock in the open market:
HG Vora Special Opportunities Master Fund, LTD
Trading History since the filing of Amendment No. 4
                 
            Avg. Price of  
    Shares     Shares  
    Purchased     Purchased or  
Trade Date   /(Sold)     Sold  
25-Mar-11
     (1,170 )   $ 9.7510  
29-Mar-11
     (32,820 )   $ 9.7884  
30-Mar-11
     (2,010 )   $ 9.8501  
31-Mar-11
     6,000     $ 9.8000  
1-Apr-11
     (2,580 )   $ 9.9006  
4-Apr-11
     2,132     $ 9.6955  
4-Apr-11
     (7,080 )   $ 10.0263  
5-Apr-11
     8,130     $ 9.3530  
5-Apr-11
     (602 )   $ 9.5502  
6-Apr-11
     12,150     $ 9.1538  
7-Apr-11
     (7,500 )   $ 9.0923  

 

 

 

                 
            Avg. Price of  
    Shares     Shares  
    Purchased     Purchased or  
Trade Date   /(Sold)     Sold  
8-Apr-11
     403     $ 8.9897  
8-Apr-11
     (3,420 )   $ 9.1613  
11-Apr-11
     5,867     $ 8.8252  
12-Apr-11
     2,520     $ 8.7228  
13-Apr-11
     6,570     $ 8.3088  
13-Apr-11
     (6,570 )   $ 8.5301  
14-Apr-11
     (7,410 )   $ 8.2539  
15-Apr-11
     1,972     $ 8.2500  
15-Apr-11
     (1,972 )   $ 8.3150  
18-Apr-11
     390     $ 7.9677  
19-Apr-11
     (780 )   $ 8.1500  
20-Apr-11
     (2,070 )   $ 8.3622  
25-Apr-11
     (4,500 )   $ 8.5000  
26-Apr-11
     (10,710 )   $ 8.6148  
26-Apr-11
     (1,980 )   $ 8.6148  
28-Apr-11
     (13,380 )   $ 8.5418  
29-Apr-11
     8,965     $ 8.6378  
29-Apr-11
     (435 )   $ 8.7028  
2-May-11
     1,511     $ 8.5782  
2-May-11
     (30,621 )   $ 8.6501  
3-May-11
     (9,900 )   $ 8.5618  
4-May-11
     15,900     $ 8.2151  
5-May-11
     3,000     $ 8.0818  
5-May-11
     (4,500 )   $ 8.3167  
6-May-11
     1,042     $ 8.1983  
6-May-11
     (6,142 )   $ 8.4000  
9-May-11
     600     $ 8.3000  
9-May-11
     (9,900 )   $ 8.5527  
10-May-11
     (14,100 )   $ 8.6476  
11-May-11
     (11,023 )   $ 8.5057  
HG Vora Special Opportunities Fund LP
Trading History since the filing of Amendment No. 4
                 
            Avg. Price of  
    Shares     Shares  
    Purchased     Purchased or  
Trade Date   /(Sold)     Sold  
25-Mar-11
     (2,730 )   $ 9.7510  
29-Mar-11
     (76,580 )   $ 9.7884  
30-Mar-11
     (4,690 )   $ 9.8501  
31-Mar-11
     14,000     $ 9.8000  
1-Apr-11
     (6,020 )   $ 9.9006  

 

 

 

                 
            Avg. Price of  
    Shares     Shares  
    Purchased     Purchased or  
Trade Date   /(Sold)     Sold  
4-Apr-11
     4,975     $ 9.6955  
4-Apr-11
     (16,520 )   $ 10.0263  
5-Apr-11
     18,970     $ 9.3530  
5-Apr-11
     (1,405 )   $ 9.5502  
6-Apr-11
     28,350     $ 9.1538  
7-Apr-11
     (17,500 )   $ 9.0923  
8-Apr-11
     940     $ 8.9897  
8-Apr-11
     (7,980 )   $ 9.1613  
11-Apr-11
     13,690     $ 8.8252  
12-Apr-11
     5,880     $ 8.7228  
13-Apr-11
     15,330     $ 8.3088  
13-Apr-11
     (15,330 )   $ 8.5301  
14-Apr-11
     (17,290 )   $ 8.2539  
15-Apr-11
     4,601     $ 8.2500  
15-Apr-11
     (4,601 )   $ 8.3150  
18-Apr-11
     910     $ 7.9677  
19-Apr-11
     (1,820 )   $ 8.1500  
20-Apr-11
     (4,830 )   $ 8.3622  
25-Apr-11
     (10,500 )   $ 8.5000  
26-Apr-11
     (4,620 )   $ 8.6148  
26-Apr-11
     (24,990 )   $ 8.6148  
28-Apr-11
     (31,220 )   $ 8.5418  
29-Apr-11
     20,919     $ 8.6378  
29-Apr-11
     (1,016 )   $ 8.7028  
2-May-11
     3,526     $ 8.5782  
2-May-11
     (71,449 )   $ 8.6501  
3-May-11
     (23,100 )   $ 8.5618  
4-May-11
     37,100     $ 8.2151  
5-May-11
     7,000     $ 8.0818  
5-May-11
     (10,501 )   $ 8.3167  
6-May-11
     2,431     $ 8.1983  
6-May-11
     (14,331 )   $ 8.4000  
9-May-11
     1,401     $ 8.3000  
9-May-11
     (23,100 )   $ 8.5527  
10-May-11
     (32,900 )   $ 8.6476  
11-May-11
     (25,722 )   $ 8.5057  
(d) and (e). Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.
Since the filing of Amendment No. 4, the Reporting Persons have written 370 call options over the Common Stock that have an expiration date of May 21, 2011 with a strike price of $10. All of these options trades were executed on option exchanges at market prices.

 

 

 

SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
May 11, 2011
         
  HG VORA SPECIAL OPPORTUNITIES MASTER FUND, LTD.
 		  
  By:   /s/ Parag Vora    
  Name:   Parag Vora   
  Title:      
 
  HG VORA SPECIAL OPPORTUNITIES FUND LP
 		  
  By:   /s/ Parag Vora    
  Name:   Parag Vora   
  Title:      
 
  HG VORA CAPITAL MANAGEMENT, LLC
 		  
  By:   /s/ Parag Vora    
  Name:   Parag Vora   
  Title:      
 
  /s/ Parag Vora    
  Parag Vora   
     

 

 

 

         
Exhibit 1
The undersigned parties hereby agree that this Schedule 13D filed herewith (and any amendments thereto) relating to the Common Stock of Morgans Hotel Group Co., is being filed jointly on behalf of each of them with the Securities and Exchange Commission pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended.
         
  HG VORA SPECIAL OPPORTUNITIES MASTER FUND, LTD.
 		  
  By:   /s/ Parag Vora    
  Name:   Parag Vora   
  Title:      
 
  HG VORA SPECIAL OPPORTUNITIES FUND LP
 		  
  By:   /s/ Parag Vora    
  Name:  Parag Vora    
  Title:      
 
  HG VORA CAPITAL MANAGEMENT, LLC
 		  
  By:   /s/ Parag Vora    
  Name:   Parag Vora   
  Title:      
     
  /s/ Parag Vora    
  Parag Vora