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Andrew (Randy) Kwasniewski, President of the Hard Rock Hotel & Casino, Dies; Cause of Death Not Immediately Known

Mr. Kwasniewski joined Morgans Hotel Group in October 2006. He had worked in the hotel industry for approximately 30 years. Prior to joining Morgans, he served as Senior Vice President of Starwood Capital Group where he played an integral role in the acquisition and operational aspects of Starwood hotel portfolios including the Societe du Louvre and Le Meridien. Prior to joining Starwood Capital Group, he was the Vice President of Operations for the Hard Rock Hotel & Casino in Las Vegas, Nevada where he oversaw all Hotel, Food & Beverage, Retail, and Facilities staffs and operations.

Fred Kleisner, CEO of Morgans Hotel Group, said, "I've known and worked with Randy since 1995. He was not just one of my colleagues and a leader of our company, he was my friend. I know few hotel and casino executives who have the knowledge, focus and work ethic that Randy possessed. I will miss him. All of us at Morgans are deeply saddened by the passing of Randy. I know I speak for everyone when I say we all mourn his loss. Randy was a dedicated husband and father, a friend to many of us, and a valued colleague. Our hearts and prayers go out to his family."

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, Scottsdale 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, including projects in SoHo, New York and Palm Springs, California. 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; risks associated with the acquisition, development and integration of properties; 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; the impact of any material litigation; the loss of key members of our senior management; 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 MHG's Annual Report on Form 10-K for the fiscal year ended December 31, 2008, 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.

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