Kerrisdale Expresses Gratitude For Strong Show Of Shareholder Support At Morgans' 2014 Annual Meeting

NEW YORK, May 21, 2014 /PRNewswire/ -- Kerrisdale Capital Management, LLC ("Kerrisdale") today commented on the results of the shareholder vote at the 2014 annual meeting of stockholders (the "2014 Annual Meeting") of Morgans Hotel Group Co. ("Morgans" or the "Company").

At the 2014 Annual Meeting, two of Kerrisdale's nominees, Messrs. John Brecker and Andrew Broad, were elected to Morgans' Board of Directors (the "Board"). All of Kerrisdale's nominees received in excess of 45% of total votes cast, and with the exclusion of votes cast by Kerrisdale and OTK Associates, Kerrisdale's nominees received a clear majority of the votes cast at the 2014 Annual Meeting. Further, with the additional exclusion of investors that Kerrisdale believes voted strictly according to ISS' recommendation, most of Morgans' nominees would have received less than a third of the votes cast at the 2014 Annual Meeting. Kerrisdale believes that, based on these results, shareholders have clearly expressed their dissatisfaction with Morgans' platform and leadership and have demanded change.

In the time leading up to the 2014 Annual Meeting, numerous Morgans shareholders communicated both publicly and privately to Kerrisdale that they would welcome a robust exploration of strategic alternatives, including an auction process to sell Morgans to the highest bidder. Most recently, Vector Group, beneficial owner of more than 6% of Morgans shares, disclosed in a Schedule 13D filed with the Securities and Exchange Commission on May 19, 2014 that they "strongly support the potential sale or merger of the Company and urge the Company's Board of Directors to sell the Company as they firmly believe that such a transaction will maximize stockholder value."

Kerrisdale congratulates Messrs. John Brecker and Andrew Broad on their election to the Board and welcomes to the Board three new Company-appointed members, Ms. Michelle Russo, and Messrs. Martin Edelman and Derex Walker. Kerrisdale hopes that these new Board members will actively engage with shareholders and lead Morgans in a way that reflects the views of Morgans' investor base by actively pursuing strategic alternatives for the Company – a direction that Morgans itself publicly recognized just a day before the 2014 Annual Meeting.

About Kerrisdale Capital Management, LLC

Kerrisdale Capital Management, LLC is a fundamentally-oriented investment manager that focuses on long-term value investments and event-driven special situations. Kerrisdale has $300 million in assets under management and is based out of New York City.

Investor contact:

Sahm Adrangi
Chief Investment Officer
Kerrisdale Capital Management, LLC
1212 Avenue of the Americas, 3rd Floor
New York, NY 10036
Telephone: 212.792.9148

SOURCE Kerrisdale Capital Management, LLC

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