Item 8.01. Other Events.

Morgans Hotel Group Co. (the "Company") issued a press release on August 16, 2012 announcing an agreement with Capital Group, one of Russia's leading development companies, for the management of Delano Moscow- a 160-room Delano-branded hotel scheduled to open in 2015.

The Company will manage Delano Moscow pursuant to a 20-year management agreement, with one ten-year extension option, subject to certain conditions. Under the management agreement, the Company is entitled to a base management fee and a centralized service reimbursement calculated as a percentage of total revenues and an incentive fee based on achieving certain profit thresholds set forth in the management agreement.

Under the Delano Moscow agreement, the Company has agreed to contribute an aggregate of $10.0 million in key money, with $3.0 million contributed upon the signing of the management agreement and the remaining $7.0 million to be contributed prior to the hotel opening. The initial $3.0 million key money contribution is refundable by the hotel owner if Delano Moscow does not open by the predetermined opening date. Additionally, the Company has provided a cash flow guarantee to the owner if the hotel does not attain specified levels of net operating profits set forth in the management agreement up to certain maximum amounts for the first four years of the contract. Such guarantee fundings, if any, are recoverable out of future hotel cash flows and under certain other conditions.

Item 9.01. Financial Statements and Exhibits.

The exhibit contained in this current report on Form 8-K shall not be deemed "filed" with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended.

(d) Exhibits.

Exhibit Number Description

99.1 Press Release, dated August 16, 2012

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