The Yucaipa Companies

Exhibit 1

The Yucaipa Companies

February 2, 2015

Morgans Hotel Group Co.
000 Xxxxx Xxx.
New York, NY 10018
Attention: Xxxxxxxx Xxxxxxx, General Counsel

Re: Investor Nominee

Ladies and gentlemen,

Reference is made to that certain Securities Purchase Agreement (the “Agreement”), dated as of October 15, 2009, by and between (i) Morgans Hotel Group Co. (the “Company”), and (ii) Yucaipa American Alliance Fund II, L.P. (“YAAF II”) and Yucaipa American Alliance (Parallel) Fund II, L.P. (“YAAF II-P” and collectively with XXXX XX, the “Investors”).  Unless otherwise specified, capitalized terms used herein shall have the meanings assigned to such terms in the Agreement.

XXXX XX, on behalf of the Investors, hereby notifies the Company that Xx. Xxxxxxxx Xxxxxx is designated as Investor Nominee pursuant to Section 5.7 of the Agreement.  Any individual previously serving as Investor Nominee is hereby removed and replaced.

The Company shall promptly nominate and support Xx. Xxxxxx’x election to the Board of Directors in accordance with the relevant procedures set forth in the Agreement and, pending such election, Xx. Xxxxxx shall hold the status of non-voting observer in accordance with Section 5.7(b)(ii)(4) thereof.

Very truly yours,

YUCAIPA AMERICAN ALLIANCE FUND II, L.P.

By:	/s/ Xxxxx X. Xxxxx
Name: Xxxxx X. Xxxxx
Title: Associate General Counsel; Assistant Vice President & Secretary