Morgans Hotel Group Provides Clarification on Investor Filing

        Morgans Hotel Group Provides Clarification on Investor Filing

PR Newswire

NEW YORK, May 17, 2013

NEW YORK, May 17, 2013 /PRNewswire/ --Morgans Hotel Group Co. (NASDAQ: MHGC)
("MHG" or the "Company")today provided clarification regarding statements
made in a filing submitted by The Yucaipa Companies ("Yucaipa"). The
reference in the Yucaipa filing was to a letter received in November 2012 from
a large international hotel company proposing to acquire all of the Company's
outstanding common stock for $7.50 per share in cash. The letter said the
proposal was based on publicly available information and would be subject to
confirmatory due diligence. The Company's Board of Directors discussed this
proposal and concluded that the price was not sufficiently attractive to
commence formal negotiations in light of the views expressed to the Company's
special transaction committee by its independent financial advisor regarding
the prospects for growth in its stock price over the next several years if the
Company is successful in securing additional management contracts through
implementation of its strategic plan. The Company's Board responded that it
was not interested at the proposed price, but that it might entertain a
proposal at a significantly higher price. A similar proposal was received by
the Company from the same party at the same price in February 2013 and the
Company's position on the proposal was unchanged.

The Company said that the foregoing information will be included in its 2013
proxy statement when it is filed with the SEC.


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 and Sanderson and St Martins Lane in London.
Morgans Hotel Group has ownership interests or owns several of these hotels.
Morgans Hotel Group has other property 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 andBaha Marin Nassau, The Bahamas; and a Hudson in London,
England. Morgans Hotel Group also owns a 90% controlling interest in The Light
Group, a leading lifestyle food and beverage company. For more information


This press release may contain certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements relate to, among other things, the operating
performance of our investments and financing needs. Forward-looking statements
are generally identifiable by use of forward-looking terminology such as
"may," "will," "should," "potential," "intend," "expect," "endeavor," "seek,"
"anticipate," "estimate," "overestimate," "underestimate," "believe," "could,"
"project," "predict," "continue" or other similar words or expressions. These
forward-looking statements reflect our current views about future events,
including the Yucaipa transaction, the rights offering and related
transactions, and are subject to risks, uncertainties, assumptions and changes
in circumstances that may cause our actual results to differ materially from
those expressed in any forward-looking statement. Important risks and factors
that could cause our actual results to differ materially from those expressed
in any forward-looking statements include, but are not limited to economic,
business, competitive market and regulatory conditions such as: a sustained
downturn in economic and market conditions, both in the U.S. and
internationally, particularly as it impacts demand for travel, hotels, dining
and entertainment; our levels of debt, our ability to refinance our current
outstanding debt, repay outstanding debt or make payments on guaranties as
they may become due, our ability to access the capital markets and the ability
of our joint ventures to do the foregoing; our history of losses; our ability
to compete in the "boutique" or "lifestyle" hotel segments of the hospitality
industry and changes in the competitive environment in our industry and the
markets where we invest; our ability to protect the value of our name, image
and brands and our intellectual property; risks related to natural disasters,
terrorist attacks, the threat of terrorist attacks and similar disasters; and
other risk factors discussed 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, as amended by the Form 10-K/A filed on April 30, 2013, and other
documents filed by the Company 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 the Company 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.

SOURCE Morgans Hotel Group Co.

Contact: Investors: Richard Szymanski, Morgans Hotel Group Co.,
+1-212-277-4188; Media: Lex Suvanto/Neil Maitland, Abernathy MacGregor,
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