Exhibit 99.1

Contacts:

Investors

Richard Szymanski

Morgans Hotel Group Co.

212.277.4188

Media

Daniel Gagnier/

Nathaniel Garnick

Sard Verbinnen & Co

212.687.8080

MORGANS HOTEL GROUP REPORTS SECOND QUARTER 2013 RESULTS

NEW YORK, NY – August 5, 2013 – Morgans Hotel Group Co. (NASDAQ: MHGC) (“MHG” or the “Company”) today reported financial results for the quarter ended June 30, 2013.

Highlights

Second Quarter 2013 Operating Results

Adjusted EBITDA for the second quarter of 2013 was $12.6 million as compared to $6.3 million for the same period in 2012. The increase was due primarily to a $3.8 million increase in EBITDA at Hudson and a $1.3 million increase in management fees.

RevPAR at System-Wide Comparable Hotels increased by 10.6% in constant dollars, or 9.9% in actual dollars, in the second quarter of 2013 from the comparable period in 2012. RevPAR for System-Wide Comparable Hotels located in the United States increased 8.6% during the second quarter of 2013 as compared to the same period in 2012. RevPAR for System-Wide Comparable Hotels located internationally increased 18.7% in constant dollars, or 15.1% in actual dollars, during the second quarter of 2013 as compared to the same period in 2012.

RevPAR from System-Wide Comparable Hotels in the Northeastern United States increased by 8.2% in the second quarter of 2013 as compared to the same period in 2012, with an increase in average daily rate (“ADR”) of 5.4% and an increase in occupancy of 2.6%. The RevPAR increase was led by a 12% increase in RevPAR at Mondrian SoHo, primarily due to gains in market share and strong demand.

Room revenues at Hudson, a non-comparable hotel in New York City, increased by 35.1% in the second quarter of 2013 as compared to the same period in 2012, due to RevPAR gains, the addition of 32 new rooms, and a full inventory of guestrooms in service after completion of the hotels’ renovation. RevPAR at Hudson increased by 30.2%, driven by a 25.8% increase in occupancy during the second quarter of 2013 as compared to the same period in 2012 when the hotel was under renovation. MHG was able to increase ADR at Hudson by 3.4%, despite the additional room inventory, due to gains in market share and strong demand.

RevPAR from System-Wide Comparable Hotels in Miami increased 1.6% in the second quarter of 2013 as compared to the same period in 2012. The timing of Easter and Passover negatively impacted results, with Delano South Beach, our fee-owned hotel, the hardest hit with an 8.7% decrease in RevPAR during the second quarter of 2013 as compared to the same period in 2012. Additionally, Delano South Beach experienced a decline in transient leisure business during the seasonally slower second quarter of 2013 as compared to the same period in 2012.

The Company’s System-Wide Comparable Hotels on the West Coast generated 17.8% RevPAR growth in the second quarter of 2013 as compared to the same period in 2012, led by Clift where RevPAR increased by 22.3%. In London, RevPAR increased by 18.7% in constant dollars, or 15.1% in actual dollars, during the second quarter of 2013, due to market share gains and a recovery in demand, which was soft in the second quarter of 2012 due to the lead up to the 2012 London Olympics.

Food and beverage revenue increased by $6.0 million, or 42.0%, due to an increase in revenue of $1.7 million at Hudson, primarily attributable to Hudson Common, the new restaurant at Hudson which opened in February 2013, and the addition of two new leased restaurants at Mandalay Bay in Las Vegas.

Management fees increased by 19.4% in the second quarter of 2013 as compared to the same period in 2012 due to a $0.9 million termination fee related to Ames in Boston and a 5.7% increase in fees at existing managed properties.

Operating margins at the Company’s Owned Hotels and consolidated food and beverage operations, which primarily includes Delano South Beach, Hudson, Clift, and restaurant leases at Mandalay Bay in Las Vegas, increased approximately 600 basis points during the second quarter of 2013 as compared to the same period in 2012.

Corporate expenses decreased by $0.4 million, or 5.0%, during the second quarter of 2013 as compared to the same period in 2012. The Company continues to actively explore opportunities to reduce overhead costs.

Interest expense increased by $3.4 million, or 40.9%, during the second quarter of 2013 as compared to the same period in 2012, primarily due to a higher debt level and higher interest rate under the new Hudson mortgage loan, which was entered into during late 2012, and increased borrowings under the Company’s revolving line of credit during the three months ended June 30, 2013 as compared to the same period in 2012.

During the quarter, the Company recorded a total of approximately $5.8 million in non-cash impairment charges in connection with receivables due from and other assets related to Mondrian SoHo and Delano Marrakech.

MHG recorded a net loss of $16.2 million for the second quarter of 2013 compared to a net loss of $13.5 million for the second quarter of 2012, due primarily to non-cash impairment charges and restructuring costs, which offset a $5.3 million improvement in operating margins at the Company’s owned operations.

Balance Sheet and Liquidity

MHG’s total consolidated debt at June 30, 2013, excluding the Clift lease, was $464.8 million.

At June 30, 2013, MHG had $9.8 million of cash and cash equivalents and $56.0 million available under its revolving credit facility. As of June 30, 2013, total restricted cash held pursuant to certain debt or lease requirements was $18.5 million.

As of June 30, 2013, the Company had approximately $312.7 million of remaining Federal tax net operating loss carryforwards to offset future income, including gains on future asset sales.

The Company’s outstanding Series A preferred securities, which have a face value of $75.0 million, have an 8% dividend rate through October 15, 2014, a 10% dividend rate from October 15, 2014 to October 15, 2016, and a 20% dividend rate thereafter, with a 4% increase in the dividend rate for certain periods during which the Yucaipa Investors’ nominee is not a director on the Company’s Board. As of July 14, 2013, the dividend rate became 12% as a result of the Yucaipa Investors’ nominee not being elected or appointed to the Company’s Board. The Company has the option to accrue any and all dividend payments when declared by the Board of Directors. As of June 30, 2013, the Company had undeclared and unpaid dividends of $26.0 million.

Development

In July 2013, the Company entered into a hotel management agreement for an approximately 211-room Delano-branded hotel to be located in Cartagena, Colombia. Upon completion and opening of the hotel, which is expected to have some condominium hotel units for sale, the Company will operate the hotel pursuant to a 20-year management agreement, with one 10-year extension option. The hotel is scheduled to open in 2016.

MHG currently has signed agreements for nine hotels that are scheduled to open over the next three years, with four of these hotels projected to open in 2014 – Mondrian London, Mondrian Doha, Delano Las Vegas and Mondrian Baha Mar. Delano Moscow is currently under construction with a projected opening in 2015.

Guidance

MHG is maintaining its projected RevPAR growth at System-wide Comparable Hotels of 8% to 10% in 2013. The Company is not providing overall EBITDA guidance at this time. However, the Company believes that it could potentially increase EBITDA at Hudson by $10 million in 2013 given the $6 million of EBITDA lost in 2012 due to rooms out of service during renovations, the new SRO units, the opening of Hudson Common, and that there is potential for further EBITDA growth at Hudson from the upgraded room product.

Definitions

“System-Wide Comparable Hotels” includes all Morgans Hotel Group branded hotels operated by MHG, except for hotels added or under major renovation during the current or the prior year, development projects and discontinued operations. System-Wide Comparable Hotels for the quarters ended June 30, 2013 and 2012 excludes Hudson, which was under renovation beginning in the fourth quarter of 2011 and continuing throughout 2012, Ames, which the Company no longer manages effective July 17, 2013, Delano Marrakech, which opened in September 2012, and Hotel Las Palapas, which is not a Morgans Hotel Group branded hotel and, as of April 1, 2013, was no longer managed by the Company.

“EBITDA” means earnings before interest, income taxes, depreciation and amortization, as further defined below.

“Adjusted EBITDA” means adjusted earnings before interest, taxes, depreciation and amortization as further defined below.

“Yucaipa Investors” means Yucaipa American Alliance Fund II, L.P. and Yucaipa American Alliance (Parallel) Fund II, L.P.

About Morgans Hotel Group

Morgans Hotel Group Co. (NASDAQ: MHGC) is widely credited as the creator of the first “boutique” hotel and a continuing leader of the hotel industry’s boutique sector. Morgans Hotel Group operates Delano in South Beach and Marrakech, Mondrian in Los Angeles, South Beach and New York, Hudson in New York, Morgans and Royalton in New York, Shore Club in South Beach, Clift in San Francisco and Sanderson and St Martins Lane in London. Morgans Hotel Group has ownership interests or owns several of these hotels. Morgans Hotel Group has other property transactions in various stages of completion, including Delano properties in Las Vegas, Nevada; Cesme, Turkey; Moscow, Russia; and Cartagena, Colombia; Mondrian properties in London, England; Istanbul, Turkey; Doha, Qatar and Baha Mar in Nassau, The Bahamas; and a Hudson in London, England. Morgans Hotel Group also owns a 90% controlling interest in The Light Group, a leading lifestyle food and beverage company. For more information please visit www.morganshotelgroup.com.

Forward-Looking and Cautionary Statements

This press release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among other things, the operating performance of our investments and financing needs. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue” or other similar words or expressions. These forward-looking statements reflect our current views about future events and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ materially from those expressed in any forward-looking statement. Important risks and factors that could cause our actual results to differ materially from those expressed in any forward-looking statements include, but are not limited to economic, business, competitive market and regulatory conditions such as: a sustained downturn in economic and market conditions, both in the U.S. and internationally, particularly as it impacts demand for travel, hotels, dining and entertainment; our levels of debt, our ability to refinance our current outstanding debt, repay outstanding debt or make payments on guaranties as they may become due, our ability to access the capital markets and the ability of our joint ventures to do the foregoing; our history of losses; our ability to compete in the “boutique” or “lifestyle” hotel segments of the hospitality industry and changes in the competitive environment in our industry and the markets where we invest; our ability to protect the value of our name, image and brands and our intellectual property; risks related to natural disasters, terrorist attacks, the threat of terrorist attacks and similar disasters; and other risk factors discussed in Morgans Hotel Group’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and other documents filed by Morgans Hotel Group 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 Morgans Hotel Group 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.

Income Statements

(In thousands, except per share amounts)

Selected Hotel Operating Statistics

Selected Hotel Operating Statistics

Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA

We believe that earnings before interest, income taxes, depreciation and amortization (EBITDA) is a useful financial metric to assess our operating performance before the impact of investing and financing transactions and income taxes. It also facilitates comparison between us and our competitors. Given the significant investments that we and our joint ventures have made in the past in property and equipment, depreciation and amortization expense comprises a meaningful portion of our cost structure. We believe that EBITDA will provide investors with a useful tool for assessing the comparability between periods because it eliminates depreciation and amortization expense attributable to capital expenditures.

The Company’s management has historically used adjusted EBITDA (Adjusted EBITDA) when evaluating the operating performance for the entire Company as well as for individual properties or groups of properties because we believe the Company’s core business model is that of an owner and operator of hotels and food and beverage venues, and the inclusion or exclusion of certain items is necessary to provide the most accurate measure of on-going core operating results and to evaluate comparative results period over period. As such, Adjusted EBITDA excludes other non-operating expense (income) that does not relate to the on-going performance of our assets and excludes the operating performance of assets in which we do not have a direct or indirect fee simple ownership interest. We exclude the following items from EBITDA to arrive at Adjusted EBITDA:

We also make an adjustment to EBITDA for hotels in which our percentage ownership interest has changed to facilitate period-over-period comparisons and to more accurately reflect the operating performance of assets based on our actual ownership. In this respect, our method of calculating Adjusted EBITDA may change from prior quarters, and calculations of Adjusted EBITDA could continue to vary from quarter to quarter to reflect changing ownership interests.

We believe Adjusted EBITDA provides management and our investors with a more accurate financial metric by which to evaluate our performance as it eliminates the impact of costs incurred related to investing and financing transactions. Internally, the Company’s management utilizes Adjusted EBITDA to measure the performance of our core on-going operations and is used extensively during our annual budgeting process. Management also uses Adjusted EBITDA as a measure in determining the value of acquisitions, expansion opportunities, and dispositions and borrowing capacity. Adjusted EBITDA is a key metric which management evaluates prior to execution of any strategic investing or financing opportunity.

The Company has historically reported Adjusted EBITDA to its investors and believes that this continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and to evaluate the results of its core on-going operations.

The use of EBITDA and Adjusted EBITDA has certain limitations. Our presentation of EBITDA and Adjusted EBITDA may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation expense for various long-term assets, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not reflect capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant disclosure of our depreciation, interest and income tax expense, capital expenditures and other items in our reconciliations to our financial measures under accounting principles generally accepted in the United States, or U.S. GAAP, and/or in our consolidated financial statements, all of which should be considered when evaluating our performance. The term EBITDA is not defined under U.S. GAAP and EBITDA is not a measure of net income, operating income, operating performance or liquidity presented in accordance with U.S. GAAP. In addition, EBITDA is impacted by reorganization of businesses and other restructuring-related charges. When assessing our operating performance, you should not consider this data in isolation, or as a substitute for our net income, operating income or any other operating performance measure that is calculated in accordance with U.S. GAAP.

A reconciliation of net loss, the most directly comparable U.S. GAAP measure, to EBITDA and Adjusted EBITDA for each of the respective periods indicated is as follows:

EBITDA Reconciliation

(In thousands)