CAUSE OF DEATH NOT IMMEDIATELY KNOWN

Morgans CEO Says Company Mourns His Loss

Morgans Hotel Group Co. (NASDAQ: MHGC) today said that Andrew (Randy) Kwasniewski was found dead in his Las Vegas home this morning. Mr. Kwasniewski was President of Morgans Hotel Group Las Vegas and Chief Operating Officer of the Hard Rock Hotel Inc. Morgans said that the cause of his death was unknown to the company at this time.

Mr. Kwasniewski joined Morgans Hotel Group in October 2006. He had worked in the hotel industry for approximately 30 years. Prior to joining Morgans, he served as Senior Vice President of Starwood Capital Group where he played an integral role in the acquisition and operational aspects of Starwood hotel portfolios including the Societe du Louvre and Le Meridien. Prior to joining Starwood Capital Group, He was the Vice President of Operations for the Hard Rock Hotel & Casino in Las Vegas, Nevada where he oversaw all Hotel, Food & Beverage, Retail, and Facilities staffs and operations.

Fred Kleisner, CEO of Morgans Hotel Group, said, “I’ve known and worked with Randy since 1995. He was not just one of my colleagues and a leader of our company he was my friend. I know few hotel and casino executives who have the knowledge, focus and work ethic that Randy possessed. I will miss him. All of us at Morgans are deeply saddened by the passing of Randy. I know I speak for everyone when I say we all mourn his loss. Randy was a dedicated husband and father, a friend to many of us, and a valued colleague. Our hearts and prayers go out to his family.”