Morgans Hotel Group Co. Responds To Notice From OTK Associates, LLC

     Morgans Hotel Group Co. Responds To Notice From OTK Associates, LLC

PR Newswire

NEW YORK, March 18, 2013

NEW YORK, March 18, 2013 /PRNewswire/ --Morgans Hotel Group Co. (NASDAQ:
MHGC) (the "Company") received a notice from OTK Associates, LLC of its intent
to nominate a full slate of its own directors for election at the Company's
2013 annual meeting of stockholders. The Corporate Governance and Nominating
Committee will carefully review the notice and the board will respond
appropriately in due course.

In its review, the board will consider, among other factors, that OTK owns
approximately 14% of the Company's outstanding shares of common stock, already
holds board membership proportionate to its ownership, and is proposing to
take full control of the Company's board of directors without paying a premium
to the Company's other stockholders.

Important Additional Information and Where to Find It

The Company will be filing a proxy statement with the SEC in connection with
the solicitation of proxies for its 2013 annual meeting of stockholders.
Stockholders are strongly advised to read the Company's 2013 proxy statement
when it becomes available because it will contain important information.
Stockholders may obtain a free copy of the 2013 proxy statement and other
documents that the Company files with the SEC (when available) from the SEC's
website at www.sec.gov or the Company's website at www.morganshotelgroup.com.

The Company, its directors and its executive officers may be deemed
participants in the solicitation of proxies from stockholders in connection
with the Company's 2013 annual meeting of stockholders. Information regarding
the persons who may, under the rules of the SEC, be considered participants in
the solicitation of stockholders in connection with the Company's 2013 annual
meeting, and their direct or indirect interests, by security holdings or
otherwise, which may be different from those of the Company's stockholders
generally, will be set forth in the 2013 proxy statement and the other
relevant documents to be filed with the SEC. Information concerning the
Company's directors and executive officers is available in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which
was filed with the SEC on March 6, 2013, and the Company's definitive proxy
statement for the 2012 annual meeting of stockholders, which was filed with
the SEC on April 16, 2012.

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 Delano in South Beach and
Marrakech, Mondrian in Los Angeles, South Beach and New York, Hudson in New
York, Morgans and Royalton in New York, Shore Club in South Beach, Clift in
San Francisco, Ames in Boston, Sanderson and St Martins Lane in London, and a
hotel in Playa del Carmen, Mexico. Morgans Hotel Group has ownership
interests in or owns several of these hotels. Morgans Hotel Group has other
brand and management transactions in various stages of completion, including
Delano properties in Las Vegas, Nevada; Cesme, Turkey and Moscow, Russia;
Mondrian properties in London, England; Istanbul, Turkey; Doha, Qatar and
Nassau, The Bahamas; and a Hudson in London, England. For more information
please visit www.morganshotelgroup.com.

SOURCE Morgans Hotel Group Co.

Website: http://www.morganshotelgroup.com
Contact: Richard Szymanski, Morgans Hotel Group Co., +1-212-277-4188; Lex
Suvanto, The Abernathy MacGregor Group, +1-212-371-5999, LEX@abmac.com; Neil
Maitland, The Abernathy MacGregor Group, +1-212-371-5999, NAM@abmac.com