Morgans Hotel Group Co. (NASDAQ: MHGC) (?MHG?) today announced the appointment of industry veteran Randy Kwasniewski as President of Morgans Hotel Group, Las Vegas, and President and Chief Operating Officer of the Hard Rock Hotel & Casino, following MHG's completion of the acquisition of the property. In this capacity, Mr. Kwasniewski will also manage the transition and oversee progress on the MHG's Echelon Place development project, which is scheduled for completion in 2010. Mr. Kwasniewski, who will be based in Las Vegas, brings over 30 years of hotel experience to MHG, most recently as Senior Vice President of Starwood Capital Group.

?We are delighted to welcome Randy to our team during this exciting time for our company, especially as we develop a significant presence in the vibrant Las Vegas market,? said Ed Scheetz, Chief Executive Officer of Morgans Hotel Group. ?With his extensive industry expertise and operational experience, including two years of previous experience at the Hard Rock, Randy is the ideal candidate to oversee our Las Vegas properties. Without question, Randy will be a valuable addition to our team and will be instrumental in the successful launch of the Hard Rock under MHG's ownership.?

?I have a great admiration for MHG's unique portfolio of properties and strong brand reputation, and am thrilled to be a part of the company's expansion into Las Vegas. In particular, I look forward to rejoining my friends and colleagues at the Hard Rock; I have the utmost respect for their talents and know that, under MHG's leadership, the Hard Rock will soon become a flagship Las Vegas property,? said Mr. Kwasniewski.

Before joining Starwood Capital Group, Mr. Kwasniewski was the Vice President of Operations for the Hard Rock Hotel & Casino in Las Vegas with responsibility for all hotel, food and beverage, retail, and employee operations. Previously, Mr. Kwasniewski served as Executive Vice President of Operations for Starwood Hotels & Resorts Worldwide where his responsibilities included the daily operations of 220 owned and managed Westin, Sheraton, Four Points, W, St. Regis & Luxury Collection properties in North America. Prior to that, Mr. Kwasniewski held positions at Starwood Lodging Corporation, as well as Sheraton Hotels, where he held the position of Executive Vice President of Hotel Operations. Mr. Kwasniewski began his hotel career with Hyatt resorts in 1974 and later worked for Doubletree Hotels and Wyndham Hotels.

In January 2006, MHG announced a joint-venture partnership with Boyd Gaming Corporation for the Echelon Place development project. As part of the agreement, MHG will develop two signature hotels bearing MHG's Delano and Mondrian brands. In May 2006, MHG announced its acquisition of the Hard Rock Hotel & Casino, its third planned offering in the Las Vegas market. The acquisition of the Hard Rock Hotel & Casino is expected to close in the first quarter of 2007.

About Morgans Hotel Group

Morgans Hotel Group Co. (NASDAQ: MHGC) which is widely credited with establishing and developing the rapidly expanding boutique hotel sector, owns and operates Morgans, Royalton and Hudson in New York, Delano and The Shore Club in Miami, Mondrian in Los Angeles and Scottsdale, Clift in San Francisco, and Sanderson and St Martins Lane in London. MHG has other property transactions in various stages of completion including projects in Miami Beach, Florida, and Las Vegas, Nevada, and continues to vigorously pursue its strategy of developing unique properties at various price points in international gateway cities in the United States, Europe, South America, Asia and around the world. For more information please visit www.morganshotelgroup.com.

Forward-Looking and Cautionary Statements

Statements contained in this press release which are not historical facts are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as "expects," "plans," "estimates," "projects," "intends," "believes," "guidance," and similar expressions that do not relate to historical matters. These forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors which include, but are not limited to, downturns in economic and market conditions, particularly levels of spending in the business, travel and leisure industries; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; risks related to natural disasters, such as earthquakes and hurricanes; the completion of transactions and the integration of properties with our existing business; the seasonal nature of the hospitality business; changes in the tastes of our customers; increases in real property tax rates; increases in interest rates and operating costs; general volatility of the capital markets and our ability to access the capital markets; and changes in the competitive environment in our industry and the markets where we invest, and other risk factors discussed in Morgans Hotel Group Co.'s Annual Report on Form 10-K and other documents filed by the Company with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are made as of today, based upon information known to management as of the date hereof, and the Company 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.