'The Florida Room unveiled during Art Basel Miami Beach 2007'

NEW YORK, Dec. 4 /PRNewswire-FirstCall/ -- Morgans Hotel Group (Nasdaq: MHGC), a distinguished leader in innovative hotel design and renowned founder of the boutique hotel, has partnered with Kravitz Design Inc. on The Florida Room, the much anticipated new lounge at the legendary Delano hotel.

This new modern day speakeasy, scheduled to open during Art Basel Miami Beach in December 2007, will offer a sophisticated alternative to the current South Beach nightlife scene. The venue resides in the subterranean space beneath the iconic hotel and consists of two rooms creating an intimate enclave that emulates the refinement of the classic jazz lounge. The lounge will feature live musical performances during the early evening, while late night guests will enjoy premium international DJ talent.

Natural elements, referencing the infinite beauty of Delano's oceanfront setting, will be subtly integrated with smoked bronze mirrored ceilings and lavish crystal chandeliers with crystals by Swarovski, the world's leading producer of precision-cut crystal. A lucite grand piano by Schimmel, a replica of the piano in Lenny Kravitz's home, will create an atmosphere of understated grandeur and elegance.

The Florida Room will offer over thirty exclusively handcrafted specialty cocktails with a Cuban/Latin feel, including a fresh Raspberry Mojito and The Florida Room Punch.

"Delano is the ultimate internationally acclaimed destination in Miami Beach and we have created a sophisticated nightlife experience that is worthy of its preeminent status," said Ben Pundole, Vice President of Nightlife and Entertainment for Morgans Hotel Group.

"My aunt had a place in her house where everyone played, hung out, listened to music and where all the fun was had, called the Florida room," said Lenny Kravitz. "We decided to create a space with this theme in mind but that also had the feeling of the old piano lounges in the resorts back in the 50's in Florida, Cuba and New York City. I love the rich musical history of Miami Beach. The Beatles, James Brown and Frank Sinatra all spent time here. We see the Delano as having this same kind of rich history and also took cues from this to envision the place I always wanted at the beach, but hasn't existed here in a long time."

Working with Delano's belief of unexpected elegance, Kravitz Design conceived an informally sophisticated experience, from the environment and ambiance including details such as the accessories and staff uniforms, to bring a new level of quality and excellence to the otherwise relaxed Miami nightlife.

ABOUT MORGANS HOTEL GROUP

Morgans Hotel Group Co. (Nasdaq: MHGC), which is widely credited with establishing and developing the rapidly expanding boutique hotel sector, owns and operates Morgans, Royalton and Hudson in New York, Delano and The Shore Club in Miami, Mondrian in Los Angeles, Scottsdale and South Beach, Clift in San Francisco, and Sanderson and St Martins Lane in London. In February 2007, MHG and an equity partner acquired 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, and Las Vegas, Nevada, and continues to vigorously pursue its strategy of developing unique properties at various price points in international gateway cities in the United States, Europe, South America, Asia and around the world. For more information please visit www.morganshotelgroup.com.

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; the completion of transactions and the integration of properties with our existing business; 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; 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 Morgans Hotel Group Co.'s Annual Report on Form 10-K 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 today, 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.

ABOUT KRAVITZ DESIGN INC.

Kravitz Design Inc. is a firm focusing on commercial, residential and product design. The firm, based in New York City, has most recently teamed up with Morgans Hotel Group, Swarovski Crystal, and The Setai Group. Swarowski selected Kravitz Design in 2005 and 2006 to participate in their Crystal Palace Collection. Kravitz Design has also envisioned a luxury recording studio for The Setai Resort and Residences in Miami Beach. The two-story penthouse facility opens winter 2008.

SOURCE  Morgans Hotel Group
    -0-                             12/04/2007
    /CONTACT:  Bryan Langston, Director, Lifestyle & Special Projects of PR
Consulting, +1-212-228-8181, bryan@prconsulting.net; or Jennifer Foley, Public
Relations Director of Morgans Hotel Group, +1-212-277-4166,
jennifer.foley@morganshotelgroup.com; or Carleen Donovan,
carleen@pressherepublicity.com or Linda Carbone, Linda@pressherepublicity.com,
both of Press Here Publicity, +1-212-246-2640, for Kravitz Design/
    /Web site:  http://www.morganshotelgroup.com /
    (MHGC)

CO:  Morgans Hotel Group; Kravitz Design Inc.
ST:  New York, Florida
IN:  TRA LEI CST
SU:  PDT

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7506 12/04/2007 18:42 EST http://www.prnewswire.com