Morgans Hotel Group Reports Third Quarter 2010 Results: Loss Per Share of $1.30

Morgans Hotel Group Co.

("MHG" or the "Company") today reported financial results for the quarter ended September 30, 2010. * Adjusted EBITDA, excluding the impact of the closure and re-concepting of the restaurants at Hudson and Royalton during the year, was $12.4 million, an increase of 25.9% from the third quarter of 2009. Adjusted EBITDA for the third quarter was $11.4 million, a $1.5 million or 15.3% increase from the third quarter of 2009. * Revenue per available room ("RevPAR") for System-Wide Comparable Hotels increased by 10.0%, or 11.2% in constant dollars, in the third quarter of 2010 from the comparable period in 2009 led by a 12.1% increase at MHG's New York hotels and a 16.2% increase (23.1% in constant dollars) at MHG's London hotels. Loss Per Share of $1.30