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by Lisa A. Grimaldi | April 06, 2011

Morgans Hotel Group has signed an agreement to sell its 168-room Royalton and 111-room Morgans hotels in New York City to an affiliate of FelCor Lodging Trust for $140 million. Morgans will continue to manage the properties under a 15-year contract, with a 10-year extension option. According to a press release, Morgans intends to use the net proceeds to reduce debt and provide capital for growth.