NEW YORK, Sept. 16, 2010 - Morgans Hotel Group Co. (Nasdaq: MHGC) ("MHG"), the groundbreaking innovator that introduced the world to iconic brands such as Delano in South Beach, Royalton and Hudson in New York City and Sanderson in London, today unveiled their irreverent take on hotel gift shops with the launch of Semi-Automatic at Hudson. Debuting just in time for New York Fashion Week, Semi-Automatic at Hudson has reinvented the hotel gift shop experience with the introduction of an oversized vending machine occupying part of a wall in the hotel lobby, stocked with a curated combination of everyday travel necessities and a myriad of luxury items at the press of a button.

• Classic paperback Catcher in the Rye, 
• a stylish toothbrush by Paul Smith, 
• a retro Ouija Board, 
• a luxe Dagger Rosary by renowned jewelry designer Pamela Love, 
• an Essential Travel Kit by Malin+ Goetz, 
• a chic black sequin mini skirt by Haute Hippie, 
• BluePrintCleanse, 
• a red Ferrari 599 GTB that you can rent on a whim from Gotham Dream Cars, and 
• a personal portrait shoot with renowned photographer Ben Watts

are all items one can expect to find in Semi-Automatic at Hudson.  There is even a touch of fantasy with 24k gold handcuffs by Kiki De Montparnasse.  Hudson's Semi-Automatic will also debut an original Hudson t-shirt, created exclusively for Hudson by artist Chrissie Miller of SOPHOMORE.   The Hudson t-shirt, which embodies the Lower East Side Style of the 70's mixed with today, is the first of a new artists t-shirt series created for Morgans Hotel Group. 

Divided into five categories: Basics, Media, Fashion, Beauty, and GoFish, the touch-operated screen allows guests to indulge in the finest name brands including Malin + Goetz, Kiki De Montparnasse, Paul Smith and Haute Hippie.

"We're thrilled to bring the unrivaled Semi-Automatic experience to Hudson in New York City," said Kim Walker, Senior Vice President and Creative Director for Morgans Hotel Group. "This incredible concept gives us the opportunity to enhance our guests' travel needs by offering exciting luxury brands, everyday essentials and unexpected experiences to take advantage of during their stay."

Semi-Automatic originally debuted last year at Mondrian in South Beach and became an astounding success.  Dispensing everything from Bentley's, Flip Video cameras and bathing suits, Semi-Automatic with its sleek design became an instant success as guests gathered around to ogle at the three-dimensional dispenser of luxury goods purchased as easily as a can of soda from a lobby vending machine. Mondrian in South Beach continues to impress today with pop-up curation of  Semi-Automatic by innovators like Interview Magazine.

Now at Hudson, Semi-Automatic is available to guests 24 hours a day, seven days a week, and will present new luxury items on a regular basis. Prices range from $4 (for the basics) to $4500 (a two night penthouse package at Morgans Hotel Group's newest hotel, Ames in Boston.  The package includes a two-night stay, dinner for two at Woodward, a special welcome amenity and a curated itinerary from UrbanDaddy).  For the extravagant consumer with refined taste the Ben Watts photo shoot is priced at $8,000 and the Ferrari 599 GTB can be yours to rent for $10,000 per week.

About Morgans Hotel Group
Morgans Hotel Group Co. (Nasdaq: MHGC) is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector.  Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift inSan Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico.  Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. For more information please visitwww.morganshotelgroup.com.

Forward-Looking and Cautionary Statements
This press release may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements relate to, among other things, the operating performance of our investments and financing needs and prediction of certain future other events.