NEW YORK | Morgans Hotel Group Co. (NASDAQ: MHGC) ("MHG") today announced that it will temporarily close Morgans, the original boutique hotel, on May 18, 2008 to undergo a complete renovation. The renovation will be led by internationally renowned designer Andree Putman, marking her return to update the iconic property.

Ms. Putman intends to pay homage to her original design of a "home away from home" while boldly propelling Morgans into the future to appeal to the contemporary guest. The renovations will include refurbishments of the lobby, guestrooms and penthouse. The "Living Room" will also be re-done and upgraded with a high-tech business center. There are no changes planned for the property's signature restaurant, Asia de Cuba, which will remain open for the duration of the renovation. MHG expects to re-open the hotel in September 2008.

"Morgans, located in Manhattan's fashion district, is MHG's original property and is widely recognized as the first boutique hotel, offering guests both comfortable and artful accommodations with unparalleled service," said Fred Kleisner, President and Chief Executive Officer of MHG. "Since its opening in 1984, Morgans has continued to attract a loyal following and remains a true New York City icon. We are pleased to work with the property's original designer to preserve the authenticity of the "urban home" concept of the hotel. We look forward to unveiling the renovations in the fall."

Hotel guests scheduled to stay at Morgans during this period will have an option of staying at either Royalton (located in midtown Manhattan) or Hudson (located blocks from Central Park).

MHG anticipates spending approximately $9.0 million on the renovation.

About Morgans Hotel Group

Morgans Hotel Group Co. (NASDAQ: MHGC) operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and The Shore Club in Miami, Mondrian in Los Angeles and Scottsdale, Clift in San Francisco, and Sanderson and St Martins Lane in London. MHG and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. MHG has other property transactions in various stages of completion, including projects in Miami Beach, Florida; Chicago, Illinois; SoHo, New York; Las Vegas, Nevada; and Palm Springs, California. For more information please visit .

Forward-Looking and Cautionary Statements

Statements contained in this press release which are not historical facts are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as "expects," "plans," "estimates," "projects," "intends," "believes," "guidance," and similar expressions that do not relate to historical matters. These forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors which include, but are not limited to, downturns in economic and market conditions, particularly levels of spending in the business, travel and leisure industries; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; risks related to natural disasters, such as earthquakes and hurricanes; risks associated with the acquisition, development and integration of properties; the seasonal nature of the hospitality business; changes in the tastes of our customers; increases in real property tax rates; increases in interest rates and operating costs; the impact of any material litigation; the loss of key members of our senior management; general volatility of the capital markets and our ability to access the capital markets; and changes in the competitive environment in our industry and the markets where we invest, and other risk factors discussed in MHG's Annual Report on Form 10-K for the fiscal year ended December 31, 2007, and other documents filed by MHG 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 MHG 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.

Jennifer Foley
Public Relations Director
212.277.4166
Morgans