Randy Kwasniewski Named President of Morgans, Las Vegas

. October 14, 2008

LAS VEGAS, NV, October 5, 2006. Morgans Hotel Group Co. (NASDAQ: MHGC) 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.

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