New York-based Morgans Hotel Group’s ownership stake in the Hard Rock Hotel has shrunk to 14.16 percent as its equity partner continues to invest more money into the property, according to a filing with the Securities and Exchange Commission.
Private equity firm DLJ Merchant Banking Partners controls the remaining 85.84 percent after it invested an additional $244.1 million in cash and notes of credit as of Nov. 4 since the property’s sale closed in February 2007.
Morgans has contributed $15.2 million.
Gaming regulators last week approved the change in equity shares.
Morgans’ share could shrink further because DLJ has made additional funding contributions since last week.
DLJ controlled 66 percent when the firm contributed $100 million toward the $770 million purchase of the 41-acre property.
Morgans’ operates the hotel-casino in exchange for management fees.