NEW YORK, Oct. 4, 2012 -- Morgans Hotel Group announces the opening of its newest international property, Delano Marrakech. From the shores of South Beach to the African continent, the much-anticipated Delano Marrakech exudes the mystery and exoticism of its surroundings, while offering the style, sophistication and unmatched standards of service that world travelers have come to expect from the Delano brand.

In partnership with Moroccan entrepreneur Ahmed Bennani's Hivernage Collection and Marbella Club (MC) Hotel Group, the 71-room boutique hotel is the ultimate haven of discovery and pleasure. Boasting four culinary destinations, a world-class spa, three pools, luxury boutiques and a dynamic nightlife venue, Delano Marrakech is a self-contained luxury resort in the heart of one of the world's most magical destinations. Located in the center of the Hivernage District, Delano Marrakech is Morgans Hotel Group's second global outpost of its signature luxury brand.

Designed by the acclaimed Jacques Garcia in collaboration with Morgans Hotel Group's design team, the hotel's opulent interior blends precious marbles with sumptuous velvet and other rare textiles, creating an intimate atmosphere with a modern edge. A breathtaking central rotunda commands the lobby space, with bold white columns soaring overhead. The unique ceiling made of hand-carved wood, gives way to an airy skylight that drenches the lobby with light.

The 71 guest rooms, comprised of 27 luxurious suites and 44 stately guest rooms, feature king sized beds with Delano's signature crisp white linens, headboards painted by renowned local artist Noureddine Daifallah, and traditional Moroccan lighting. iPads will be available in every room, allowing guests to order room service or browse hotel amenities at the touch of a screen. Bathrooms exclusively feature MALIN+GOETZ signature bath products including Bergamot Body Wash, Vitamin b5 Body Moisturize and Rum Bar Soap.

Delano Marrakech takes guests on a culinary journey around the globe, presenting fine dining options fit for every palate. At Pomiroeu, Michelin-starred Executive Chef Giancarlo Morelli transports his celebrated Northern Italian cuisine to Morocco, in an elegant space on the hotel's lobby level. Pomiroeu's rotating seasonal menu, featuring Morelli's signature risottos, will include specialty cheeses and meats imported from Italy, as well as local spices and flavors that intoxicate and delight. The 98-seat restaurant painted in lush reds, features a salon wall of gold-leafed artwork and a spacious outdoor terrace where guests can dine al fresco for an open-air culinary experience. For a more casual dining experience, Galerie provides an international cafe menu, set beneath the hotel's soaring rotunda, which is open for breakfast, lunch and dinner, as well as through room service.

Presiding over the hotel's upper deck, Namazake presents an upscale eastern dining offering for Delano's discerning guests. The Japanese Sake and Sashimi concept from MC Hotel Group unfolds onto the hotel's timber-clad rooftop deck. At Namazake, head chefs Senzai Renee and Chef Elquin have created an inspired menu of Japanese delights, ranging from traditional sushi and sashimi to Japanese barbecue and inventive Tempura dishes. Modeled after Namazake's celebrated outpost in Marbella, Spain, the restaurant features signature colors of black, white and claret-reds, dark woods and luxurious stone finishes, while incorporating Asian-inspired accents including Buddha statuettes.

Surrounding the Namazake space sits Sky Lounge, Delano Marrakech's outdoor rooftop venue, boasting spectacular 360-degree views of the Red City, the bustling Medina, Agdal Gardens, imperial ramparts and Atlas Mountains. Guests can order from the Namazake menu or indulge in a Sky Lounge specialty cocktail while taking in panoramic views of the city of Marrakech. In the evening, Sky Lounge comes alive under the stars as an alluring nightlife venue featuring music and world-class mixology.

MC Hotel Group also has plans to bring their acclaimed Suite Lounge to Delano Marrakech as an exciting underground nightlife venue, which is scheduled to open in 2013. The Group will also unveil a new restaurant concept at Delano Marrakech, called Bon R, slated to open late 2012. The stunning restaurant, designed by Jacques Garcia in a French Baroque style, overlooks a lushly landscaped pool and features deep shades of purple and rich velvets. Seating at Bon R extends out to the pool deck, where guests can enjoy decadent menu offerings in a serene outdoor atmosphere.

For the ultimate retreat, guests at Delano Marrakech can indulge their senses at The Pearl Spa, an impressive 20,000-square-foot facility beneath the hotel's main level. The Pearl Spa's extensive menu offers a wide-range of unique and traditional treatments ranging from aromatherapy massages and facials to authentic Moroccan hammams. The Pearl Spa features separate women and men's hydrotherapy circuits that can accommodate up to four guests at one time, as well as an exquisite subterranean mosaic pool, full-service beauty salon and state-of-the-art fitness center. The facility also offers a luxurious private hammam area, equipped with its own lounge area, Jacuzzi, steam room, sauna and two limestone treatment beds, ideal for a tranquil individual escape or a romantic couples retreat. The Pearl Spa uses only the best and most prestigious international wellness brands, including marocMaroc, Valmont and Aromatherapy Associates.

Delano Marrakech's ideal location at the inner core of one of the world's most culturally rich cities allows guests the perfect home base for discovery and exploration. Delano Marrakech features a carefully curated selection of boutiques on the ground level, including Louis Vuitton, La Perla and Tamengo jewelry.

For more information, please visit www.delanomarrakech.com or call 800.606.6090 (US) or 00 800 4969 1770 (international).

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 Delano in South Beach and Marrakech, Mondrian in Los Angeles, South Beach and New York, Hudson in New York, Morgans and Royalton in New York, Shore Club in South Beach, Clift in San Francisco, Ames in Boston, Sanderson and St Martins Lane in London, and a hotel in Playa del Carmen, Mexico. Morgans Hotel Group has ownership interests or owns several of these hotels. Morgans Hotel Group has other property transactions in various stages of completion, including Delano properties in Las Vegas, Nevada; Cesme, Turkey and Moscow, Russia; Mondrian properties in London, England; Marrakech, Morocco; Istanbul, Turkey; Doha, Qatar and Nassau, The Bahamas; and a Hudson in London, England. Morgans Hotel Group also owns a 90% controlling interest in The Light Group, a leading lifestyle food and beverage company. For more information please visit www.morganshotelgroup.com.

ABOUT HIVERNAGE COLLECTION
The group Hivernage Collection was born on the initiative of Mr Ahmed Bennani. Upon returning from his studies in the United States in 1996, Mr Bennani joined the family hotel business and decided to infuse his contemporary and original version of the trade into it. In 2004, the opening of the Hivernage Hotel and Spa formed the cornerstone of the ambitious project of this young Moroccan entrepreneur: to create, in Morocco, a new style of hotel that combines modernity, a level of comfort to the standards of international luxury, and above all, very special attention paid to the clientele born from Morocco's legendary sense of hospitality. The Hivernage Hotel & Spa is one of the first establishments in Marrakech to break from the hotel restoration tradition by calling upon French chef Christophe Leroy to create LA TABLE DU MARCHE in Marrakech. A sure bet, since the restaurant and its boutique will very quickly become one of the most highly esteemed gastronomic addresses in the city. The same applies to Villas by Hivernage, charming houses located in the countryside or in the Palmeraie, beyond the tumult of the city, which have offered new living opportunities to the clientele of the hotel since 2009. The year 2008 represented a turning point for Mr Bennani. The idea of the company made way for the idea of the Group, and Hivernage Collection was created with the launching of two new hotel projects: Delano Marrakech which opened in September 2012, and Mondrian Marrakech, the opening of which is planned during 2013.

ABOUT MARBELLA CLUB HOTEL GROUP
The MC (Marbella Club) Hotel Group is a leading international luxury hotel and hospitality group which has a collection of outstanding hotels and resorts in key city and resort destinations around the world. Lead by Founding Director Daniel Shamoon, the MC Hotel Group is an €500 million business employing over 1,500 staff which operates by developing, managing, owning or partnering hotels and hospitality businesses. The MC Hotel Group also develops and sells branded residences and suites within the MC Hotel Group real estate portfolio and has developed a series of strong food and leisure brands which are exported to both Group owned and non-Group owned hotels and resorts internationally. Within the MC Hotel Group portfolio are the world-famous Marbella Club Hotel, the flagship brand, the Marbella Club Golf Resort and Hotel Puente Romano both also in Marbella, Hotel El Lodge in the Sierra Nevada Ski Resort, Schlossle Hotel in Tallinn, St. Petersbourg Hotel in Tallinn and Grand Palace Hotel in Riga. The MC Hotel Group also has an ownership interest in the Delano Marrakesh, a Morgans Hotel Group property. The Group has developed a series of strong food and leisure brands which are being exported to both Group owned and non-Group owned hotels and resorts on an international basis. The Suite Lounge (restaurant/bar/nightclub) concept has been introduced into the Group's Hotel Puente Romano, El Lodge, Schlossle Hotel and Grand Palace Hotel properties and into the Delano Marrakesh. The Group's Namazake Japanese sake and sushi restaurant brand has been introduced into the Hotel Puente Romano and Delano Marrakesh. The Group's MC Grill restaurant concept has been developed at the Marbella Club, El Lodge and the Schlossle Hotel. The Group's MC Cafe and MC Beach brands have also been developed so that they can be exported on an international basis. The MC Hotel Group has other hotel and resort property transactions in various stages of completion including the Bora Bora Lagoon Resort & Spa in French Polynesia. For more information please visit: www.mchotels.net

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 Morgans' Annual Report on Form 10-K for the fiscal year ended December 31, 2011, and other documents filed by Morgans 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 Morgans 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.