Morgans Hotel Group (MHG) has recorded a 33 per cent decrease in net loss for the third quarter to 30 September 2011, when compared with the same three-month period last year.

The hotel operator said the drop was "primarily" due to a reduction in other non-operating expenses relating to charges for the change in the fair value of warrants issued to Yucaipa.

Meanwhile, the group also reported a US$1m (£628,000; EUR733,000) growth in adjusted EBITDA for the period, while RevPAR for comparable hotels was up more than 9 per cent.

MHG chief executive officer Michael Gross said: "Our hotels continued to perform well in the quarter and we made significant progress in positioning the company for growth.

"We have further reduced our leverage, eliminated all near-term consolidated debt maturities and improved our liquidity position. We are now focused on enhancing our status as a global leader in lifestyle hospitality management."