Morgans Reinforces Commitment to Innovation

Through Edgy Design and Nightlife Partnerships

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. October 14, 2008

NEW YORK, NY, September 20, 2006. Morgans Hotel Group announces a host of new nightlife and design partnerships, reinforcing their commitment to innovation through cutting edge design and cutting edge service. The Company will re-kindle its longtime romance with the internationally celebrated interior designer Andree Putman and embark on new projects with highly praised design talents India Mahdavi, Benjamin Noriega Ortiz and designer Tim Andreas. Morgans Hotel Group will also partner with nightlife cognoscente Amy Sacco, and nightlife and entertainment authority Ben Pundole.

These exciting design changes are under the direction of MHG's newly named Vice President of Design, Mari Balestrazzi. Balestrazzi was Studio Director for Aero Studios Limited, where she oversaw new construction and renovation of both private residences and commercial projects, including: 60 Thompson Hotel and Giorgio Armani's private residence in New York. Balestrazzi was also the Director of Design for the St. Regis brand for three years.

"We are tremendously excited to be working with such an esteemed group of tastemakers," remarks Morgans Hotel Group's Chief Branding Officer, Tim Miller. "These new partnerships are truly benchmarks in style and substance for Morgans Hotel Group, continuing our tradition of era-defining endeavors that have consistently set the standard for the industry itself. We are redefining a modern classic, by reinvigorating our brands. Our guests expect us to be the leader in innovation, design and service. These partnerships reflect our continued commitment to fulfilling their expectations."

Andree Putman is revered worldwide for her innovative, elegant and daring interior designs. Commonly referred to as the 'CoCo Chanel' of interior design, Putman has received countless honors including the European Grand Prix for Interior Architecture, Gala Spa Award, Modernism Design Award for Lifetime Achievement, and Stars of Design Award for Lifetime Achievement in Interior Design. Later this year, Putman will rekindle her highly successful relationship with Morgans Hotel Group as she prepares to update and reinterpret the iconic Morgans Hotel in New York City.

Adding Scottsdale to its roster of great locations, Morgans Hotel Group is preparing to play a major role in the cultural renaissance of the region with the launch of Mondrian in early 2007. The Company and interior designer Benjamin Noriega-Ortiz have conceived an unexpected and thoughtful new interpretation of the desert oasis, which will soon be unveiled under the group's signature, Mondrian name. House & Garden has named Noriega-Ortiz one of America's most brilliant interior designers for the past ten years. Noriega-Ortiz's vision, which evokes glamour and sophistication with an element of fantasy, has quickly identified him internationally as one of the most stylish and influential innovators in the field of design.

MHG and designer Tim Andreas will unveil the newly renovated Delano guestrooms in December of this year. Andreas has a long history of collaboration with Morgans Hotel Group with his past design work on Morgans Bar and Skybar at The Shore Club. Andreas will combine luxury materials and classic inspiration to enhance this modern, yet timeless, iconic resort.

Later this year, Morgans Hotel Group will commence a partnership with Amy Sacco to launch Bungalow 8 at St Martins Lane in London. This collaboration will undoubtedly reaffirm both parties' reputations as innovators in the world of hospitality. Highly respected for her foresight and savvy, Sacco has continually been the defining force behind New York's unparalleled nightlife scene for nearly ten years.

Bungalow 8 London will reunite the highly successful team of Sacco and Ben Pundole, who is now Morgans Hotel Group's Director of Nightlife and Entertainment. Pundole has effortlessly combined trend-inspiring cocktails, top DJs, and thoughtful interpretations of nightlife to create the ambiance at some of the hottest nightspots including New York's renowned Hudson Bar and Library Bar at Hudson, Redwood Room at Clift in San Francisco, and the famed Skybar at Miami's Shore Club.

MHG has also enlisted the visionary interior designer, India Mahdavi, to design the highly anticipated new restaurant at Sanderson and Bungalow 8 at St Martins Lane. Mahdavi's imaginative design concepts have already received worldwide acclaim including the 2004's Creator of the Year Award by the prestigious Salon Maison & Object.