Jefferies Downgrades Morgans Hotel Group to Hold (MHGC)

Jefferies is out with its report today on Morgans Hotel Group MHGC, downgrading MHGC from Buy to Hold. In a note to clients, Jefferies writes, "We are downgrading MHGC to HOLD to reflect the increasing risk to the company's management agreement at the Hard Rock Las Vegas, which could mitigate the benefits of capital recycling and new management contracts." Shares of MHGC closed Friday at $9.29, up 3.34% from Thursday's close.