Morgans Hotel Group Co. (NASDAQ: MHGC) theNew York-based hospitality management company, today announced a partnership with Moroccan entrepreneurAhmed Bennani and Hivernage Collection which will see the unveiling of two properties in Marrakech,Morocco; a 73-roomDelano slated to open inSeptember 2012, followed by a Mondrian-branded property scheduled to open in late 2013. The collaboration was marked by a meeting with representatives from both parties, who came together to sign 15-year management agreements for both properties.

Located in the heart of theHivernage District, Delano Marrakech, the brand's second outpost and first international property, reflectsMorgans Hotel Group's global expansion plan for its signature luxury brand.

Following the footsteps of itsSouth Beachpredecessor, Delano Marrakech will provide world-travelers with another sophisticated world-class urban resort marked by unparalleled style and five-star service. As a self-contained destination, Delano Marrakech will offer a haven of luxury and relaxation in heart of the vibrant, magical city.

Commenting on the brands' expansion into the North African market,Michael Gross, Chief Executive Officer ofMorgans Hotel Group, said: "We are excited to be working withAhmed Bennaniand his team to bring the secondDelanoin the world to Marrakech. This collaboration signifiesMorgans Hotel Group's entry intoNorth Africaand we are thrilled to be one of the first U.S. based hotel companies to extend our brand portfolio to the dynamic city of Marrakech.Delanohas become a truly iconic brand, synonymous with luxury and unrivaled standards of service, and our Marrakech property will showcase this unique hotel offering to a brand new audience."

Designed by internationally acclaimed interior designerJacques Garcia, the hotel's unconventional baroque interior brings together precious marbles, sumptuous draped velvet, and rare fabrics to create a relaxing and intimate atmosphere that befitsDelano's discerning guests. Delano Marrakech is a luxurious boutique hotel boasting 73-opulent suites, a 20,000 square foot spa offering the some of the most prestigious wellness brands in the world including Valmont and marocMaroc, as well as three private pools.

Delano Marrakech will become a premier nightlife destination with the introduction of a brand new roof deck, which will be programmed during the day and evening hours, as well as a subterranean nightclub located below the ground level of the hotel.The Light Group, one ofthe United States' leading hospitality development and management companies, in whichMorgans Hotel Groupacquired a controlling interest last November, will operate both venues.The Light Grouphas a ten-year proven track record of delivering cutting-edge food and beverage experiences at world-class locations.

Delano Marrakech will also showcase new lounge and bar concepts to offer guests a diverse array of nightlife venues to choose from without ever needing to leave the resort. To complete the experience,Delanoguests can dine at the hotels' French or Italian restaurants, which are presided over by Michelin stared chefs, Michel Rostang andGiancarlo Morellirespectively.

For the last 30 years, culinary legend Rostang has received wide spread acclaim from critics and foodies alike. His latest venture, Bon R, further demonstrates Rostang's passion for food with his simple yet exquisite dishes. Opening in August, Bon R will offer a French menu with pairings of classical and modern flavours for breakfast, lunch and dinner. Dishes will change weekly, enabling Rostang-trained chefs to constantly create and inspire using fresh seasonal ingredients.

This August also sees the opening ofGiancarlo Morelli's latest offering, Pomireu. Morelli, renowned for marrying traditional Italian techniques with boundless creativity, has concocted a menu with a feast of flavours not to be missed. Italian fine dining offering Pomireu will bring a slice of old school Italian glamour to Marrekech.

Just minutes from downtown Marrakech in the hotel area of Agdal, the 69-room Mondrian Marrakech, will provide guests with an oasis of rest and relaxation. The hotel will comprise a portion of a 480,000 square foot complex that will include extensive state of the art fitness facilities, several food and beverage outlets and world class spa facilities. This expansion of the Mondrian brand joins the collection of planned Mondrian hotels inLondon, theBahamas,DohaandIstanbul.

Morgans Hotels Groupcurrently has properties inBoston,New York,Miami,Los Angeles,San FranciscoandLondon.

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, Mondrian in Los Angeles, New York, South Beach and London, Hudson in New York, Morgans and Royalton in New York, Clift in San Francisco, Shore Club in South Beach and Sanderson and St Martins Lane in London. Morgans Hotel Group has ownership interests or owns several of these hotels. Morgans Hotel Group also licenses a Delano in Las Vegas. Morgans Hotel Group has other hotels in various stages of development to be operated under management or franchise agreement, including a Mondrian property in Doha, Qatar and a Morgans Original in Istanbul, Turkey. Morgans Hotel Group also owns a 90% controlling interest in The Light Group, a leading lifestyle food and beverage company. For more information please visit www.morganshotelgroup.com.

Lauren Buchman
+1-212-277-4118
Morgans Hotel Group