China Grill Management Fully Acquires Rights to Asia De Cuba

China Grill Management (“CGM”) announced that it will sell to Morgans Hotel Group ("MHG") the 50% interests that it owns in its food and beverage joint ventures at Delano, Mondrian Los Angeles, Mondrian South Beach, Morgans, Sanderson and St Martin's Lane, for approximately $20 million. CGM has also entered into agreement with MHG to obtain full ownership of the Asia de Cuba brand and all intellectual property associated therewith.

Jeffrey Chodorow, Founder & Chief Executive Officer of CGM states, “CGM has had a successful and profitable partnership with MHG for many years but we both felt it was time to reassess our brand strategies, taking both in a new direction. We value the time spent in partnership with Morgans Hotel Group and are now focusing on re-introducing the Asia de Cuba concept globally with multiple locations set to open over the next several years.”

CGM will continue to manage the operations for a transitional period. CGM has also agreed to license the Asia de Cuba trademark to MHG during the transition and will continue to manage the food and beverage operations in those hotels for terms of up to 1 year (for most of the hotels) and up to 2 years (St Martin's Lane). The transaction is expected to close in the second quarter of 2011 and is subject to satisfaction of certain closing conditions. The original Asia de Cuba opened to huge success and critical acclaim in Ian Schrager's Morgans Hotel in 1997, and started the partnership with Ian Schrager and Ian Schrager Hotels, the predecessor to Morgans Hotel Group.

Logos, product and company names mentioned are the property of their respective owners.

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