NEW, Jan. 18 /PRNewswire-FirstCall/ -- Following Mondrian Los Angeles, which set industry standards with its breathtaking design and fresh articulation of the hotel experience, Morgans Hotel Group announces the opening of Mondrian Scottsdale on January 30th, 2007.

Mondrian Scottsdale, designed by rising international star Benjamin Noriega-Ortiz, is an inventive vision of modern glamour for a new generation of sophisticated global travelers. Drawing his inspiration from the Garden of Eden, Noriega-Ortiz has created a unique sybaritic retreat offering rest, rejuvenation, fun and entertainment in a vibrantly pleasure-driven environment. His thoughtful interpretation reflects the youthful spirit of the thriving city of Scottsdale, while celebrating the senses with luxury, indulgence, and amusement.

Located in the heart of Old Town Scottsdale, this "Urban Resort" is a sheltered oasis that belies its surroundings. From the street, only walls and lush gardens are visible. Through the iconic 25 foot Mondrian "gates" fashioned entirely from tropical bougainvillea, visitors enter the hotel via a sweeping entranceway carpeted by a virtual red carpet of stenciled leaves. Guests are then greeted with a cooling fountain and cascading double-height white drapes as they enter the lobby. The coy evocation of the Garden of Eden is further conjured in the lobby by antique mirrors, a long serpentine bench supported by an imaginative large baobab tree and motifs of clouds and cherubs in addition to the discreet appearance of a scaled-up image of Durer's Adam and Eve. Pink lighting illuminating the mirrored reception desk hint at the guilty pleasures found within.

Beyond the lobby's sensual flesh tone setting, multi-tonal lighting emanates from the archways of the renowned eatery Asia de Cuba, the latest addition to Jeffrey Chodorow's acclaimed restaurant empire, and MHG's legendary nightspots Skybar and the new, Red Bar. Skybar, accessed from the gardens, is draped in decadent black gauze and furnished with black wing chairs and an enormous, luxurious bed for relaxing and star-gazing along with a cluster of veiled cabanas that may be rented for more intimate entertaining. Guests will also enjoy three plush beds in the open-air "living room" while enjoying the ambience provided by the enchanting glow of an outdoor fireplace. The temptations of the Red Bar are encapsulated by a single, oversized apple, thoughtfully placed as the focal point of the room which is adorned by a luscious combination of scarlet textures and textiles.

From its spacious, black-and-white rooms illuminated by a single red box to its huge, communal tables, the surprising juxtaposition of objects, sudden shifts in scale and sculptural elements create a delightful sense of fantasy throughout the hotel's public and private spaces. Like its predecessor, Mondrian Los Angeles, Mondrian Scottsdale brings the idea of indoor/ outdoor living center stage, creating outdoor and open indoor spaces that flow naturally into one another to heighten the connection with the natural beauty of its desert surroundings. Subtle lighting effects soften the glare of the midday sun and enhance the experience of Scottsdale's fabulous night sky.

Mondrian Scottsdale features 194 oversized guest rooms including 15 suites and 2 stunning apartments. Ground floor rooms have patio terraces, and the upper floors have private balconies. Two swimming pools, a 24-hour gym, state-of-the-art technology and business facilities, and Morgans Hotel Group's signature spa, Agua, highlight the impressive list of amenities.

Interior designer Benjamin Noriega-Ortiz was born in Puerto Rico, a heritage that has been a lasting inspiration in his work, which is particularly notable for its use of light and airiness and its fun-loving spirit. He studied Architecture and Urban Design in San Juan and at Columbia University, worked for six years as head interior designer at the interior and product design studio of John F. Saladino, and established his own company in 1992. His many private and corporate projects include four residences for Lenny Kravitz, and his portfolio extends to lighting, rugs, textiles and furniture lines. Increasingly celebrated for his bold, dynamic design, with strong graphic lines and a hedonistic streak, Noriega-Ortiz's philosophy is that "Interiors should be elevated into living works of art, environments in which comfort and beauty are naturally aligned."

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 and Scottsdale, Clift in San Francisco, and Sanderson and St Martins Lane in London. 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.

    CONTACT:

    National:                    International
    Lacy Smythe                  Richard Scott & Zoey Goto
    PR Consulting                Purple PR
    Tel: 212.228.8181            Tel. 44.20.7434.7062/7063
    Fax: 212.228.8787            Fax. 44.20.7439.9887
    lacy@prconsulting.net        richard@purplepr.com

    Local:                       Morgans Hotel Group:
    Ted Anderson                 Jennifer Foley
    MMA Advertising              Public Relations Director
    Tel. 602.466.3940            Tel: 212.277.4166
    Fax. 602.466.3945            Fax: 212.277.4270
    ted@agencymma.com            jennifer.foley@morganshotelgroup.com


SOURCE  Morgans Hotel Group Co.
    -0-                             01/18/2007
    /CONTACT:  National - Lacy Smythe, PR Consulting, Tel: +1-212-228-8181, or
Fax: +1-212-228-8787, lacy@prconsulting.net; or International - Richard Scott,
Tel:  +44-20-7434-7062, or richard@purplepr.com, or Zoey Goto,
+44-20-7434-7063, both of Purple PR, Fax: +44-20-7439-9887; or Local - Ted
Anderson, MMA Advertising, Tel: +1-602-466-3940, or Fax: +1-602-466-3945, or
ted@agencymma.com; or Morgans Hotel Group - Jennifer Foley, Public Relations
Director, Tel: +1-212-277-4166, or Fax: +1-212-277-4270, or
jennifer.foley@morganshotelgroup.com /
    /Web site:  http://www.morganshotelgroup.com /
    (MHGC)

CO:  Morgans Hotel Group Co.; Mondrian Scottsdale
ST:  New York, Arizona, California
IN:  LEI TRA
SU:  PDT

GV
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9677 01/18/2007 11:21 EST http://www.prnewswire.com