Appointments & Promotions

Morgans Appoints Fernando Cerna as Director of Global Sales

NEW YORK, NY - August 26, 2010 - Morgans Hotel Group Co. (Nasdaq: MHGC) ("MHG") today named Fernando Cerna Director of Global Sales, effective immediately.

Cerna will be an integral part of wholesale initiatives and strategy for the entire Morgans Hotel Group portfolio. Cerna joins Morgans from Grove Isle Hotel and Spa where he was Director of Sales and Marketing. Prior to that Cerna had a very successful 10-year career with Morgans, holding positions in both operations and sales at the iconic Delano in South Beach and on the company's Miami Regional Sales Team.

"We are thrilled to have Fernando back home with Morgans," said Brian Jones, Senior Vice President of Sales of Morgans Hotel Group. "We expect our Global Sales initiative to drive our continued success and growth and Fernando brings to Morgans a wealth of knowledge and experience that will benefit our customers and our hotels."

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 inSan 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 visitwww.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.

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