UPDATE: Morgans Prices IPO

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NEW YORK CITY-Morgans Hotel Group Co., based here, has priced its initial public offering of 18 million shares of its common stock at $20 per share. At closing, which is scheduled for Feb. 17, the hospitality company expects to receive net proceeds of approximately $275 million.

The company will sell 15 million shares and selling stockholders will sell three million shares of their common stock. The company will not receive any proceeds from shares sold by selling stockholders. Morgans intends to use net proceeds of the offering to repay outstanding debt and preferred equity interests, to finance a portion of the acquisition of James Hotel Scottsdale and for general corporate purposes, including hotel renovations. Morgans Hotel Group Co. has also granted to the underwriters an option to purchase up to an additional 2.7 million shares to cover any over-allotments.