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Morgans Hotel Group & Cape Advisors Schedule Opening of the Mondrian Brands
Third Property, Mondrian SoHo, New York City

NEW YORK, Jan. 10, 2011 -- Morgans Hotel Group Co. (Nasdaq: MHGC) ("Morgans") and developer Cape Advisors, Inc. today announced the opening of Mondrian SoHo on March 1st, with an exclusive preview at the end of February. Fantasy meets sophisticated chic with Morgans Hotel Group's unveiling of its third Mondrian, the renowned lifestyle brand known for its distinct style of hospitality, nightlife and entertainment, and the company's downtown debut in Manhattan's famed SoHo neighborhood at 9 Crosby Street.

Situated intimately in the midst of lower Manhattan's coveted SoHo neighborhood, Mondrian takes its place amongst a-list residents, fashionable and picturesque streets, charm and energy.  Mondrian joins a unique offering of retail, art and culinary innovators and adds to this renowned cultural destination in lower Manhattan.  Boasting over 100 shops, 250 galleries, and nearly 200 restaurants, SoHo is the most talked about neighborhood in New York.  Noteworthy destinations close to Mondrian include Jil Sander, Opening Ceremony, Saturday Surf Shop and the New Museum, amongst others.  Nearby popular areas include Greenwich Village, Nolita, the Lower East Side, Tribeca and Chinatown.

"The addition of Mondrian SoHo to our portfolio marks a significant moment in the evolution of the Mondrian brand and solidifies our presence in a neighborhood that is beloved by our sophisticated clientele, both local and international," said Marc Gordon, President of Morgans Hotel Group.  "We are looking forward to adding our unique style of hospitality, nightlife and entertainment, innovative culinary concepts, design and impeccable service to the rich culture landscape of SoHo."

Morgans Hotel Group selected Benjamin Noriega-Ortiz, the visionary behind the re-imagined Mondrian Los Angeles, to create Mondrian SoHo in collaboration with the company's renowned in-house design team.  By weaving in elements of the signature Mondrian brand ethos in subtle yet provocative design features throughout the property, Morgans Hotel Group has created a luxurious, yet approachable destination.  The romantic design draws inspiration from Jean Coucteau's 1946 French fantasy film "La Belle et la Bete", an iconic romantic adaptation of two French fairy tales, awakening the imagination and inviting guests into a vibrant escape. All the while delivering the luxurious, chic and comfortable style for which the Mondrian brand is best known.

As guests enter Mondrian through a lush green garden topiary facade on Crosby Street, the story of "La Belle et la Bete" is unveiled in the lobby: a powdery French blue color palette unifies a series of seating vignettes over a pale oak floor. The casual and eclectic seating groups featuring custom furniture designed by Noriega, echo the whimsical environments of other signature properties within the Morgans Hotel Group portfolio.

At the highly anticipated Imperial No. 9, located just off the lobby, Chef Sam Talbot will introduce his sustainable seafood concept with a 150-seat restaurant. In keeping with Noriega's dream-like theme, an opulent cluster of crystal chandeliers hangs over a large, mirror-topped communal table and anchors the main dining room.   White washed oak floors and sandy-beige walls accented with antique mirrors embellish the airy atmosphere.  A long bar clad in white-washed oak and cream colored stone serves as a casual imbibing spot with a selection of handcrafted cocktails that Morgans Hotel Group's nightlife destinations are famous for.  A play of sand colors and textures compliment subtle references to ocean motifs, giving the room a sense of refined elegance while maintaining the allure found throughout the hotel.
 
The garden building at Imperial No. 9 boasts a romantic setting complemented by an elegant crystal chandelier collection and accented with potted plants and natural ficus trees, all beneath the shelter of a dramatic glass roof.  The centerpiece of the space is a delicate over-sized glass sculpture created by acclaimed artist Beth Lipman, and serving as a reference to Cocteau's story in which seduction takes the form of an elaborate feast, prepared nightly.   A zinc-topped, potting shed -style bar features wood shelving with potted plants, complimenting the elegant garden atmosphere.  A Benjamin Noriega-Ortiz signature double-sided cottage swing completes the casual playfulness of the room and references the whimsy of the designer's swing in the lobby of Mondrian Los Angeles.

Mondrian's mesmerizing ambiance continues within the 270-room hotel, which includes four sprawling suites, each featuring a terrace, and a grand Penthouse on Mondrian's 25th floor. Saturated blue corridors with custom carpet adorned with a rose vine design provide entryway to the elegant jewel-box rooms featuring large dramatic mirrors, a clever nod to the ubiquitous French tale. A number of rooms also feature a pristine marble foyer and bar area, sparkling chrome desks and classic translucent doors offering entry to the bathroom with custom-designed fixtures. Chrome night tables and sconces offset an angelic white bed, 10-foot ceilings and floor-to-ceiling windows capture the essence of a true New York City loft while lending stunning views from within the SoHo neighborhood's tallest building.

The 1,170 square-foot Penthouse is the perfect, exclusive events destination, featuring a 200 square foot north-facing terrace with dramatic views of the Empire State building and an additional 2,000 square foot south facing terrace with stunning panoramic views.
Mondrian is offering a preview rate of $229, including continental breakfast, from February 22nd, leading up to the opening of Imperial No. 9 on March 1st.  As of March 1st, rates begin at $259, based on availability.  Reserve at www.mondriansoho.com using promo code SPINTR upon booking or call 800 606 6090 within the United States or, 00 800 4969 17700 Internationally.
 
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. For more information please visit www.morganshotelgroup.com.
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Contact:

Jennifer Foley
Vice President of Public Relations
Morgans Hotel Group
+1-212-277-4166
jennifer.foley@morganshotelgroup.com
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