NEW YORK, Feb. 10, 2011 -- Morgans Hotel Group Co. (Nasdaq: MHGC) ("Morgans") announced today that it has entered into three management agreements for hotels in urban and resort markets around the world.  Among the new agreements, Morgans plans to bring its world-renowned Delano brand to two hotels in sophisticated resort destinations outside of the United States.

Morgans recently signed a hotel management agreement for a 114 key Delano on the beach at the tip of the Baja Peninsula in Cabo San Lucas, Mexico, overlooking the Sea of Cortez.  Along with the hotel, the resort is expected to feature 23 branded residences, a restaurant offering modern Mexican cuisine and fresh local seafood, tropical drinks and fare at the bar, the warmth and hospitality of a destination spa, and other amenities found in a Delano-branded resort.  The hotel is currently under construction and is expected to open early in 2013.

Morgans also signed a management agreement for a 200 key Delano on the Aegean Sea in Turkey, an exclusive, high-end resort destination easily accessible from Istanbul and other key European locations.  In addition to the guest rooms, the resort is expected to feature up to 50 branded residences, several restaurants and bars with international as well as local cuisine, a traditional Turkish spa, indoor and outdoor meeting venues, and a particular focus on water sports facilities as the area is known as one of the windsurfing capitals of the world.  Expected to open in 2013, this will be Morgans' first hotel in the region.

Further, Morgans entered into a management agreement for a 175 key hotel in New York City in the burgeoning Highline area.  The hotel will be branded with one of Morgans' existing brands and is expected to include all of the amenities and the special and distinct experiences that Morgans' guests expect from a luxury, cutting-edge hotel.  The hotel is currently under development and is expected to open in 2014.  Morgans currently is keeping additional details confidential with more information to follow in the future.

Marc Gordon, President of Morgans Hotel Group, said, "Each of these hotels will add a new and unique option for our current guests and new guests alike.  These agreements demonstrate the continued strong appeal of Morgans' hotels both in the US and abroad, and our ability to enter into transactions structured per our stated business plan with long-term management and branding contracts without significant investment by MHG.  We are particularly pleased to expand our portfolio to new non-US destinations, which we are confident will be just the tip of the iceberg of our future international expansion."

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 in San 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 in various locations around the world including the Mondrian Soho in New York, which is scheduled to open on March 1st. For more information please visit www.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. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "expect," "anticipate," "estimate" "believe," "project," or other similar words or expressions. These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results or other future events to differ materially from those expressed in any forward-looking statement.  Important risks and factors that could cause our actual results to differ materially from those expressed in any forward-looking statements include, but are not limited to economic, business, competitive market and regulatory conditions such as: a sustained downturn in economic and market conditions, particularly levels of spending in the business, travel and leisure industries; continued tightness in the global credit markets; general volatility of the capital markets and our ability to access the capital markets; our ability to refinance our current outstanding debt and to repay outstanding debt as such debt matures;  our ability to protect the value of our name, image and brands and our intellectual property;  risks related to natural disasters, such as earthquakes, volcanoes and hurricanes; hostilities, including future terrorist attacks, or fear of hostilities that affect travel;  and  other risk factors discussed in MHG's Annual Report on Form 10-K for the fiscal year ended December 31, 2009, and other documents filed by MHG with the Securities and Exchange Commission from time to time.  All forward-looking statements in this press release are made as of the date hereof, based upon information known to management as of the date hereof, and MHG assumes no obligations to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.