On November 2, 2009, Morgans Hotel Group Co. (the "Company") entered into a supplemental indenture to the indenture governing its $50.0 million trust preferred securities (the "Amendment"). The Amendment permanently eliminates the indenture's sole financial covenant, which required the Company to maintain a certain EBITDA to interest coverage ratio. The Company paid a one-time fee of $2.0 million in exchange for the permanent removal of the covenant.

A copy of the Company's press release announcing its entry into the Amendment is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The information furnished in Exhibit 99.1 shall not be deemed "filed" with the Securities Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended. A copy of the Amendment is attached hereto as Exhibit 4.1 and is incorporated herein by reference. The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Amendment.

(d) Exhibits.

Exhibit Number      Description

4.1                 Supplemental Indenture, dated as of November 2, 2009, by and among
                    Morgans Group LLC, the Company and The Bank of New York Mellon Trust
                    Company, National Association (as successor to JPMorgan Chase Bank,
                    National Association), as Trustee.

99.1                Press Release, dated November 2, 2009, regarding the Amendment.