Morgans Hotel Group Co. (NASDAQ: MHGC) ("MHG") announced today that it has scheduled a special meeting of stockholders to be held at Hudson in New York City on Thursday, January 28, 2010 at 10:00 AM Eastern time. The record date for determination of stockholders entitled to vote at the meeting has been set as the close of business on Friday, December 11, 2009. The special meeting is being convened to allow stockholders of record to vote on two proposals.
The first proposal to be voted on at the special meeting seeks stockholder approval for the full exercise of warrants issued to an affiliate of The Yucaipa Companies, LLC ("Yucaipa") in a transaction announced on October 15, 2009. For more information about this transaction please see MHG's Current Report on Form 8-K filed with the Securities and Exchange Commission on October 16, 2009.
The second proposal to be voted on at the special meeting seeks stockholder approval for an amendment to MHG's Amended and Restated 2007 Omnibus Incentive Plan.
MHG has retained D.F. King & Co., Inc. to serve as its proxy solicitation agent. Requests by stockholders for documents or questions about the proxy solicitation should be directed to D.F. King & Co., Inc. at 1-800-269-6427, info@dfking.comor by mail at 48 Wall Street, New York, NY 10005.
This press release is for notice purposes only and is not a solicitation or request for a proxy.
About Morgans Hotel Group
Morgans Hotel Group Co. operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles, Scottsdale and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York, Palm Springs, California, Isla Verde, Puerto Rico, Playa del Carmen, Mexico and Dubai, UAE. For more information please visit www.morganshotelgroup.com.
About Yucaipa
The Yucaipa Companies is a premier investment firm that has established a record of fostering economic value through the growth and responsible development of companies. Since its founding in 1986, the firm has completed mergers and acquisitions valued at more than $30 billion. As an investor, Yucaipa works with management to strategically reposition businesses and implement operational improvements, resulting in value creation for investors.
Forward-Looking and Cautionary Statements
Statements contained in this press release which are not historical facts are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as "expects," "plans," "estimates," "projects," "intends," "believes," "guidance," and similar expressions that do not relate to historical matters. These forward-looking statements are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated, due to a number of factors which include, but are not limited to, downturns in economic and market conditions, particularly levels of spending in the business, travel and leisure industries; hostilities, including future terrorist attacks, or fear of hostilities that affect travel; risks related to natural disasters, such as earthquakes and hurricanes; risks associated with the acquisition, development and integration of properties; the seasonal nature of the hospitality business; changes in the tastes of our customers; increases in real property tax rates; increases in interest rates and operating costs; the impact of any material litigation; the loss of key members of our senior management; general volatility of the capital markets and our ability to access the capital markets; and changes in the competitive environment in our industry and the markets where we invest, and other risk factors discussed in MHG's Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and other documents filed by MHG with the Securities and Exchange Commission from time to time. All forward-looking statements in this press release are made as of the date hereof, based upon information known to management as of the date hereof, and MHG assumes no obligations to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.
Contacts:
For Press Inquiries:
Morgans
Hotel Group Co.
Jennifer Foley, 212-277-4166
Vice President of
Public Relations
jennifer.foley@morganshotelgroup.com