Morgans Hotel Group Announces Hard Rock JV Settlement Agreement

Morgans Hotel Group Co. MHGC announced today that the Hard Rock joint venture, in which the company holds a minority interest, has reached a settlement agreement with its lenders effective March 1, 2011. Pursuant to the terms of the settlement, the Hard Rock joint venture's equity interests in the Hard Rock Hotel & Casino in Las Vegas have been transferred to the first mezzanine lender and MHG's management agreement has been terminated. With this agreement, MHG has been released from any liability for the Hard Rock debt (which has been carried on MHG's books as a component of investments in unconsolidated joint ventures at approximately $160 million), and from all of its guarantee obligations with regard to this property.