Morgans Hotel Group Co., a fully integrated hospitality company that operates boutique hotels in gateway cities under well-known brands such as Delano and Mondrian, announced that it is moving forward on several growth initiatives that will increase its number of properties by one-third and is expected to nearly double the number of hotel rooms under management.

The initiatives include the development of two hotels in Las Vegas, the expansion of the Company`s Delano in South Miami Beach and the planned acquisition of a boutique hotel in Scottsdale, Arizona.

W. Edward Scheetz, President & Chief Executive Officer of Morgans Hotel Group, said, This is an exciting time for our Company. Our successful public offering has provided us with the financial flexibility to take advantage of growth opportunities to expand into other major markets where our customers travel. We will continue to seek additional opportunities to expand our brands into other major business and leisure travel markets and to continue to offer customers a unique, glamorous experience.

In Las Vegas, Morgans Hotel Group has entered into a 50/50 joint venture with Boyd Gaming Corporation to develop two signature hotels bearing the Company`s Delano and Mondrian brands.

In South Miami Beach, the Company recently completed the acquisition of a property located across from Delano. The site will be redeveloped as an expansion of Delano. Opened in 1995, Delano instantly created a new industry standard for the next generation of Urban Resort.

In Scottsdale, Morgans Hotel Group has agreed to acquire the James Hotel Scottsdale, which it will renovate and re-brand as Mondrian Scottsdale. The acquisition is expected to close in April 2006. The hotel will remain open during renovations, which are expected to be completed by the end of the year.

Marc Gordon, the Company`s Chief Investment Officer and Executive Vice President of Capital Markets, commented, Just as our current destination properties provide a distinctive combined lodging, dining and nightlife experience, we expect our newest properties to offer exciting and superior alternatives to the existing hotels in the markets we enter. We established the boutique sector of the hotel industry and we continue to define it.