All Seven OTK Associates Director Nominees Elected to Morgans Hotel Group Board of Directors

NEW YORK--(BUSINESS WIRE)--OTK Associates, LLC (“OTK”), the largest shareholder of Morgans Hotel Group Co. (“Morgans”) (Nasdaq: MHGC) with 13.9% of the outstanding common stock of the company, today announced that, based on the preliminary results, Morgans stockholders have voted overwhelmingly to elect all seven OTK nominees – John Dougherty, Jason Kalisman, Mahmood Khimji, Jonathan Langer, Andrea Olshan, Michael Olshan and Parag Vora – to the company’s board of directors. Certification of the final results by the independent inspectors of elections, IVS Associates, is expected to be completed shortly.

Michael Olshan, a founding member of OTK, said: “The outcome of this vote sends a clear and irrefutable message from Morgans stockholders that meaningful change was needed at the company. We are gratified that Morgans stockholders have supported our efforts to bring about true accountability and oversight to Morgans’ board of directors and management, and we are grateful for their careful consideration of the issues and facts in support of our directors.

“The new board is eager to begin working constructively to address the company’s balance sheet and expense structure, and to run the company in a manner that is in the best interest of all stockholders. Importantly, we welcome Yucaipa’s and other stakeholders’ valued input and of course plan to honor all of the company’s previously negotiated commitments. We think Morgans’ best days are ahead and look forward to working together to return the company to its rightful place as the leading international boutique hotel platform.”