Strategic Hotels & Resorts (BEE+C) 8-K Results of Operations and Financial Condition

Exhibit 99.2

Strategic Hotels & Resorts, Inc.

Supplemental Financial Information

December 31, 2014

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

TABLE OF CONTENTS

	PAGE
CORPORATE INFORMATION
The Company	1
Board of Directors	2
Officers	3
Equity Research Coverage	4
FINANCIAL HIGHLIGHTS
Supplemental Financial Data	5
Consolidated Statements of Operations	6
Consolidated Balance Sheets	7
Discontinued Operations	8
Investments in Unconsolidated Affiliates	9
Leasehold Information	10
Non-GAAP Financial Measures	11
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA	12
Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO	13
Debt Summary	14
PORTFOLIO DATA
Portfolio at December 31, 2014	16
Seasonality by Geographic Region	17
Operating Statistics by Geographic Region	18
Selected Financial and Operating Information by Property	19
Reconciliation of Property EBITDA to EBITDA	24
Reconciliation of Property EBITDA to Comparable EBITDA	26
2014 Guidance	27

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

CORPORATE INFORMATION

The Company

Strategic Hotels & Resorts, Inc. is an industry-leading owner and asset manager of high-end hotels and resorts. We own interests in or lease a quality portfolio of upper upscale and luxury hotels and resorts in desirable United States and European locations. Our portfolio, as of February 23, 2015, is currently made up of 18 properties totaling 8,325 rooms including the Montage Laguna Beach resort, which was acquired on January 29, 2015. We own interests in or lease unique hotels with complex operations, sophisticated customers and multiple revenue streams. Our properties include large convention hotels, business hotels and resorts, which are managed by internationally recognized hotel management companies.

We believe our asset management expertise is what truly distinguishes us. Asset management is our focus, our core competency, and our competitive advantage. Our business is driven by our team’s depth of knowledge and hands-on expertise in every aspect of the lodging industry. While our focus is to drive top line revenues, we importantly focus on every component of bottom line profitability. We use our experience to make selective, value added acquisitions and recycle capital through thoughtful and planned dispositions. Simply put, we are utilizing our expert management skills in building a great hotel company which we believe will provide attractive returns for our shareholders.

Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) and is traded on the New York Stock Exchange under the symbol BEE.

Fiscal Year End:

December 31

Number of Full-Time Equivalent Employees:

35

Corporate Headquarters:

200 West Madison Street, Suite 1700

Chicago, IL 60606

(312) 658-5000

Company Contacts:

Diane M. Morefield

Executive Vice President, Chief Financial Officer

(312) 658-5000

Jonathan P. Stanner

Senior Vice President, Capital Markets, Acquisitions and Treasurer

(312) 658-5000

1

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Board of Directors

Raymond L. Gellein, Jr.

Chairman of the Board, Chief Executive Officer and President

Sheli Z. Rosenberg

Lead Independent Director

Robert P. Bowen

Director and Chairman of the Audit Committee

James A. Jeffs

Director and Chairman of the Compensation Committee

William A. Prezant

Director and Chairman of the Corporate Governance and Nominating Committee

David W. Johnson

Director

Richard D. Kincaid

Director

Sir David M.C. Michels

Director

Eugene F. Reilly

Director

2

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Officers

Raymond L. Gellein, Jr.

Chief Executive Officer and President

Diane M. Morefield

Executive Vice President, Chief Financial Officer (Principal Financial and Accounting Officer)

Richard J. Moreau

Executive Vice President, Chief Operating Officer

Paula C. Maggio

Executive Vice President, Secretary & General Counsel

John K.T. Barrett

Senior Vice President, Asset Management

Thomas G. Healy

Senior Vice President, Asset Management

David R. Hogin, Jr.

Senior Vice President, Asset Management

Robert T. McAllister

Senior Vice President, Tax

Patricia A. Needham

Senior Vice President, Assistant Secretary

Eric D. Hassberger

Senior Vice President, Asset Management and Acquisitions

Jonathan P. Stanner

Senior Vice President, Capital Markets, Acquisitions and Treasurer

Gregory A. Brenner

Vice President, Controller

James L. Porter

Vice President, Internal Audit

George T. Stowers

Vice President, Design and Construction

3

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Equity Research Coverage

Firm	Analyst	Telephone
Bank of America Merrill Lynch	Andrew Didora	(646) 855-2924
Deutsche Bank North America	Chris Woronka	(212) 250-4486
Green Street Advisors	Lukas Hartwich	(949) 640-8780
Evercore ISI	Rich Hightower	(212) 752-0886
JMP Securities	Robert LaFleur	(415) 835-8944
J.P. Morgan Securities	Jonathan Mohraz	(212) 622-1111
MLV & Co	Ryan Meliker	(212) 542-5872
Raymond James & Associates	William Crow	(727) 567-2594
Wells Fargo Securities, LLC	Jeffrey Donnelly	(617) 603-4262
Credit Suisse	Ian Weissman	(212) 538-6889
RBC Capital Markets	Wes Golladay	(440) 715-2650

Strategic Hotels & Resorts, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Strategic Hotels & Resorts, Inc.'s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Strategic Hotels & Resorts, Inc. or its management. Strategic Hotels & Resorts, Inc. does not by its reference here imply its endorsement of, or concurrence with, such information, conclusions or recommendations.

4

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Financial Highlights

Supplemental Financial Data

(in thousands, except per share information)

	December 31, 2014
	Pro Rata Share			Consolidated
Capitalization
Shares of common stock outstanding	267,436			267,436
Operating partnership units outstanding	794			794
Restricted stock units outstanding	2,030			2,030
Combined shares and units outstanding	270,260			270,260
Common stock price at end of period	$	13.23		$	13.23
Common equity capitalization	$	3,575,540		$	3,575,540
Preferred stock redemption liability	90,384			90,384
Consolidated debt	1,706,401			1,706,401
Pro rata share of consolidated debt	(151,750		)	—
Cash and cash equivalents	(442,613		)	(442,613		)
Total enterprise value	$	4,777,962		$	4,929,712
Net Debt / Total Enterprise Value	25.2		%	27.5		%
Common Equity / Total Enterprise Value	74.8		%	72.5		%

5

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
	2014			2013			2014			2013
Revenues:
Rooms	$	154,862		$	119,894		$	582,969		$	479,734
Food and beverage	118,936			78,433			385,623			287,557
Other hotel operating revenue	37,679			32,107			115,084			91,355
Lease revenue	1,524			1,385			5,406			5,161
Total revenues	313,001			231,819			1,089,082			863,807
Operating Costs and Expenses:
Rooms	45,084			34,655			168,256			138,946
Food and beverage	85,317			58,141			277,962			221,388
Other departmental expenses	75,762			54,423			270,219			213,714
Management fees	11,342			7,167			36,331			25,000
Other hotel expenses	17,810			14,627			67,058			58,435
Lease expense	1,140			1,234			4,873			4,818
Depreciation and amortization	36,493			23,207			119,688			96,712
Impairment losses and other charges	—			—			—			728
Corporate expenses	7,102			7,013			26,898			25,176
Total operating costs and expenses	280,050			200,467			971,285			784,917
Operating income	32,951			31,352			117,797			78,890
Interest expense	(22,414		)	(18,839		)	(82,119		)	(77,189		)
Interest income	146			12			269			53
Loss on early extinguishment of debt	(2,010		)	—			(2,619		)	—
Equity in (losses) earnings of unconsolidated affiliates	(30		)	(265		)	5,237			2,987
Foreign currency exchange (loss) gain	(41		)	16			(116		)	42
Gain on consolidation of affiliates	20			—			143,471			—
Other (expenses) income, net	(130		)	(359		)	952			(314		)
Income before income taxes and discontinued operations	8,492			11,917			182,872			4,469
Income tax expense	(584		)	(86		)	(1,200		)	(156		)
Income from continuing operations	7,908			11,831			181,672			4,313
Income from discontinued operations, net of tax	276			3,834			159,378			5,574
Net Income	8,184			15,665			341,050			9,887
Net income attributable to the noncontrolling interests in SHR's operating partnership	(24		)	(60		)	(1,221		)	(38		)
Net (income) loss attributable to the noncontrolling interests in consolidated affiliates	(1,458		)	(6,341		)	4,654			1,126
Net Income Attributable to SHR	6,702			9,264			344,483			10,975
Preferred shareholder dividends	(5,289		)	(6,041		)	(24,084		)	(24,166		)
Net Income (Loss) Attributable to SHR Common Shareholders	$	1,413		$	3,223		$	320,399		$	(13,191	)
Basic Income (Loss) Per Common Share:
Income (loss) from continuing operations attributable to SHR common shareholders	$	0.01		$	—		$	0.69		$	(0.09	)
Income from discontinued operations attributable to SHR common shareholders	—			0.02			0.68			0.03
Net income (loss) attributable to SHR common shareholders	$	0.01		$	0.02		$	1.37		$	(0.06	)
Weighted average shares of common stock outstanding	254,813			206,814			233,528			206,334
Diluted Income (Loss) Per Common Share:
Income (loss) from continuing operations attributable to SHR common shareholders	$	0.01		$	—		$	0.65		$	(0.09	)
Income from discontinued operations attributable to SHR common shareholders	—			0.02			0.65			0.03
Net income (loss) attributable to SHR common shareholders	$	0.01		$	0.02		$	1.30		$	(0.06	)
Weighted average shares of common stock outstanding	256,104			206,814			243,558			206,334

6

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014 and December 31, 2013

Consolidated Balance Sheets

(in thousands, except share data)

	December 31,
	2014			2013
Assets
Investment in hotel properties, net	$	2,828,400		$	1,795,338
Goodwill	38,128			38,128
Intangible assets, net of accumulated amortization of $7,288 and $11,753	94,324			29,502
Assets held for sale	—			135,901
Investment in unconsolidated affiliates	22,850			104,973
Cash and cash equivalents	442,613			73,655
Restricted cash and cash equivalents	81,510			75,916
Accounts receivable, net of allowance for doubtful accounts of $492 and $606	51,382			39,660
Deferred financing costs, net of accumulated amortization of $7,814 and $12,354	11,440			8,478
Deferred tax assets	1,729			—
Prepaid expenses and other assets	46,781			35,600
Total assets	$	3,619,157		$	2,337,151
Liabilities, Noncontrolling Interests and Equity
Liabilities:
Mortgages and other debt payable, net of discount	$	1,705,778		$	1,163,696
Bank credit facility	—			110,000
Liabilities of assets held for sale	—			17,027
Accounts payable and accrued expenses	224,505			189,889
Preferred stock redemption liability	90,384			—
Distributions payable	104			—
Deferred tax liabilities	46,137			46,137
Total liabilities	2,066,908			1,526,749
Commitments and contingencies
Noncontrolling interests in SHR’s operating partnership	10,500			7,534
Equity:
SHR’s shareholders’ equity:
8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value per share; 0 and 4,148,141 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $0 and $103,704 in the aggregate)	—			99,995
8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value per share; 3,615,375 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $90,488 and $90,384 in the aggregate)	—			87,064
8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value per share; 0 and 3,827,727 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $0 and $95,693 in the aggregate)	—			92,489
Common stock ($0.01 par value per share; 350,000,000 shares of common stock authorized; 267,435,799 and 205,582,838 shares of common stock issued and outstanding)	2,674			2,056
Additional paid-in capital	2,348,284			1,705,306
Accumulated deficit	(890,469		)	(1,234,952		)
Accumulated other comprehensive loss	(13,032		)	(41,445		)
Total SHR’s shareholders’ equity	1,447,457			710,513
Noncontrolling interests in consolidated affiliates	94,292			92,355
Total equity	1,541,749			802,868
Total liabilities, noncontrolling interests and equity	$	3,619,157		$	2,337,151

7

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Discontinued Operations

The results of operations of hotels sold are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. The following hotels were sold during the year ended December 31, 2014:

Hotel	Location	Date Sold	Sales Proceeds			Gain on sale
Four Seasons Punta Mita Resort and La Solana land parcel	Punta Mita, Mexico	February 28, 2014	$	206,867,000		$	63,879,000
Marriott London Grosvenor Square	London, England	March 31, 2014	$	209,407,000	(a)	$	92,889,000

(a) There was an outstanding balance of £67,301,000 ($112,150,000) on the mortgage loan secured by the Marriott London Grosvenor Square hotel, which was repaid at the time of closing. The net proceeds we received were $97,257,000.

The following is a summary of income from discontinued operations for the three months and years ended December 31, 2014 and 2013 (in thousands):

	Three Months Ended December 31,					Years Ended December 31,
	2014		2013			2014			2013
Hotel operating revenues	$	—	$	22,918		$	17,767		$	74,170
Operating costs and expenses	—		15,154			11,485			51,295
Depreciation and amortization	—		2,352			1,275			9,306
Total operating costs and expenses	—		17,506			12,760			60,601
Operating income	—		5,412			5,007			13,569
Interest expense	—		(1,566		)	(1,326		)	(7,087		)
Interest income	—		2			2			6
Loss on early extinguishment of debt	—		—			(272		)	—
Foreign currency exchange (loss) gain	—		(150		)	32			1
Other income, net	—		375			—			375
Income tax expense	—		(239		)	(833		)	(1,290		)
Gain on sale, net of tax	276		—			156,768			—
Income from discontinued operations, net of tax	$	276	$	3,834		$	159,378		$	5,574

8

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Investments in Unconsolidated Affiliates

(in thousands)

We had a 36.4% equity ownership interest in the Hotel del Coronado that we accounted for using the equity method of accounting until we acquired the remaining 63.6% equity ownership interest not previously owned by us on June 11, 2014. We had a 50.0% equity ownership interest in the Fairmont Scottsdale Princess hotel that we accounted for using the equity method of accounting until we acquired the remaining 50.0% equity ownership interest not previously owned by us on March 31, 2014. For purposes of this analysis, the operating results reflect the 36.4% equity ownership interest we held in the Hotel del Coronado prior to June 11, 2014 and the 50.0% equity ownership interest we held in the Fairmont Scottsdale Princess hotel prior to March 31, 2014.

	Three Months Ended December 31, 2014						Three Months Ended December 31, 2013
	Hotel del Coronado		Fairmont Scottsdale Princess		Total		Hotel del Coronado			Fairmont Scottsdale Princess			Total
Total revenues (100%)	$	—	$	—	$	—	$	33,115		$	23,634		$	56,749
Property EBITDA (100%)	$	—	$	—	$	—	$	8,668		$	4,111		$	12,779
Equity in (losses) earnings of unconsolidated affiliates (SHR ownership)
Property EBITDA	$	—	$	—	$	—	$	3,153		$	2,056		$	5,209
Depreciation and amortization	—		—		—		(1,917		)	(1,565		)	(3,482		)
Interest expense	—		—		—		(1,941		)	(193		)	(2,134		)
Other expenses, net	—		—		—		(14		)	(23		)	(37		)
Income taxes	—		—		—		85			—			85
Equity in (losses) earnings of unconsolidated affiliates	$	—	$	—	$	—	$	(634	)	$	275		$	(359	)
EBITDA Contribution:
Equity in (losses) earnings of unconsolidated affiliates	$	—	$	—	$	—	$	(634	)	$	275		$	(359	)
Depreciation and amortization	—		—		—		1,917			1,565			3,482
Interest expense	—		—		—		1,941			193			2,134
Income taxes	—		—		—		(85		)	—			(85		)
EBITDA Contribution	$	—	$	—	$	—	$	3,139		$	2,033		$	5,172
FFO Contribution:
Equity in (losses) earnings of unconsolidated affiliates	$	—	$	—	$	—	$	(634	)	$	275		$	(359	)
Depreciation and amortization	—		—		—		1,917			1,565			3,482
FFO Contribution	$	—	$	—	$	—	$	1,283		$	1,840		$	3,123

	Year Ended December 31, 2014									Year Ended December 31, 2013
	Hotel del Coronado			Fairmont Scottsdale Princess			Total			Hotel del Coronado			Fairmont Scottsdale Princess			Total
Total revenues (100%)	$	67,863		$	35,006		$	102,869		$	148,482		$	93,133		$	241,615
Property EBITDA (100%)	$	20,761		$	13,191		$	33,952		$	47,155		$	18,883		$	66,038
Equity in earnings of unconsolidated affiliates (SHR ownership)
Property EBITDA	$	7,426		$	6,595		$	14,021		$	17,152		$	9,442		$	26,594
Depreciation and amortization	(3,526		)	(1,551		)	(5,077		)	(7,564		)	(6,570		)	(14,134		)
Interest expense	(3,418		)	(168		)	(3,586		)	(8,325		)	(778		)	(9,103		)
Other expenses, net	(25		)	(30		)	(55		)	(242		)	(58		)	(300		)
Income taxes	143			—			143			(191		)	—			(191		)
Equity in earnings of unconsolidated affiliates	$	600		$	4,846		$	5,446		$	830		$	2,036		$	2,866
EBITDA Contribution
Equity in earnings of unconsolidated affiliates	$	600		$	4,846		$	5,446		$	830		$	2,036		$	2,866
Depreciation and amortization	3,526			1,551			5,077			7,564			6,570			14,134
Interest expense	3,418			168			3,586			8,325			778			9,103
Income taxes	(143		)	—			(143		)	191			—			191
EBITDA Contribution	$	7,401		$	6,565		$	13,966		$	16,910		$	9,384		$	26,294
FFO Contribution
Equity in earnings of unconsolidated affiliates	$	600		$	4,846		$	5,446		$	830		$	2,036		$	2,866
Depreciation and amortization	3,526			1,551			5,077			7,564			6,570			14,134
FFO Contribution	$	4,126		$	6,397		$	10,523		$	8,394		$	8,606		$	17,000

9

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Leasehold Information

(in thousands)

	Three Months Ended December 31,						Years Ended December 31,
	2014			2013			2014			2013
Marriott Hamburg:
Property EBITDA	$	1,573		$	1,741		$	6,529		$	6,298
Revenue (a)	$	1,524		$	1,385		$	5,406		$	5,161
Lease expense	(1,140		)	(1,234		)	(4,873		)	(4,818		)
Less: Deferred gain on sale-leaseback	(48		)	(53		)	(207		)	(207		)
Adjusted lease expense	(1,188		)	(1,287		)	(5,080		)	(5,025		)
Comparable EBITDA contribution from leasehold	$	336		$	98		$	326		$	136

Security Deposit (b):	December 31, 2014		December 31, 2013
Marriott Hamburg	$	2,299	$	2,611

(a) For the three months and years ended December 31, 2014 and 2013, Revenue for the Marriott Hamburg hotel represents lease revenue.

(b) The security deposit is recorded in prepaid expenses and other assets on the consolidated balance sheets.

10

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Non-GAAP Financial Measures

We present five non-GAAP financial measures that we believe are useful to management and investors as key measures of our operating performance: Funds from Operations (FFO); FFO—Fully Diluted; Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); and Comparable EBITDA.

EBITDA represents net income (or loss) attributable to SHR common shareholders excluding: (i) interest expense, (ii) income taxes, including deferred income tax benefits and expenses applicable to our foreign subsidiaries and income taxes applicable to sale of assets; (iii) depreciation and amortization; and (iv) preferred stock dividends. EBITDA also excludes interest expense, income taxes and depreciation and amortization of our unconsolidated affiliates. EBITDA is presented on a full participation basis, which means we have assumed conversion of all redeemable noncontrolling interests of our operating partnership into our common stock. We believe this treatment of noncontrolling interests provides useful information for management and our investors and appropriately considers our current capital structure. We also present Comparable EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks, as well as the effect of gains or losses on sales of assets, early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe EBITDA and Comparable EBITDA are useful to management and investors in evaluating our operating performance because they provide management and investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe they help management and investors meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our asset base (primarily depreciation and amortization) from our operating results. Our management also uses EBITDA and Comparable EBITDA as measures in determining the value of acquisitions and dispositions.

We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT adopted a definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding losses or gains from sales of depreciable property, impairment of depreciable real estate, real estate-related depreciation and amortization, and our portion of these items related to unconsolidated affiliates. We also present FFO—Fully Diluted, which is FFO plus income or loss on income attributable to redeemable noncontrolling interests in our operating partnership. We also present Comparable FFO, which is FFO—Fully Diluted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses on non-depreciable assets, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. We believe that the presentation of FFO, FFO—Fully Diluted and Comparable FFO provides useful information to management and investors regarding our results of operations because they are measures of our ability to fund capital expenditures and expand our business. In addition, FFO is widely used in the real estate industry to measure operating performance without regard to items such as depreciation and amortization. We also present Comparable FFO per diluted share as a non-GAAP measure of our performance. We calculate Comparable FFO per diluted share for a given operating period as our Comparable FFO (as defined above) divided by the weighted average of fully diluted shares outstanding, excluding shares related to the JW Marriott Essex House Hotel put option. Dilutive securities may include shares granted under share-based compensation plans and operating partnership units. No effect is shown for securities that are anti-dilutive.

We caution investors that amounts presented in accordance with our definitions of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA should not be considered as an alternative measure of our net income (or loss) or operating performance. FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily a better indicator of any trend as compared to comparable GAAP measures such as net income (or loss) attributable to SHR common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. We have provided a quantitative reconciliation of FFO, FFO—Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net income (or loss) attributable to SHR common shareholders.

11

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA

(in thousands)

	Three Months Ended December 31,						Years Ended December 31,
	2014			2013			2014			2013
Net income (loss) attributable to SHR common shareholders	$	1,413		$	3,223		$	320,399		$	(13,191	)
Depreciation and amortization—continuing operations	36,493			23,207			119,688			96,712
Depreciation and amortization—discontinued operations	—			2,352			1,275			9,306
Interest expense—continuing operations	22,414			18,839			82,119			77,189
Interest expense—discontinued operations	—			1,566			1,326			7,087
Income taxes—continuing operations	584			86			1,200			156
Income taxes—discontinued operations	—			239			833			1,290
Income taxes—sale of assets	—			—			20,451			—
Noncontrolling interests	24			60			1,221			38
Adjustments from consolidated affiliates	(4,072		)	(3,589		)	(15,756		)	(14,604		)
Adjustments from unconsolidated affiliates	(13		)	5,553			8,419			23,489
Preferred shareholder dividends	5,289			6,041			24,084			24,166
EBITDA	62,132			57,577			565,259			211,638
Realized portion of deferred gain on sale-leaseback	(48		)	(53		)	(207		)	(207		)
Loss (gain) on sale of assets—continuing operations	—			430			(729		)	1,185
Gain on sale of assets—discontinued operations	(276		)	—			(177,219		)	—
Gain on consolidation of affiliates	(20		)	—			(143,471		)	—
Impairment losses and other charges	—			—			—			728
Loss on early extinguishment of debt—continuing operations	2,010			—			2,619			—
Loss on early extinguishment of debt—discontinued operations	—			—			272			—
Foreign currency exchange loss (gain)—continuing operations (a)	41			(16		)	116			(42		)
Foreign currency exchange loss (gain)—discontinued operations (a)	—			150			(32		)	(1		)
Non-cash interest rate derivative activity	91			—			218			—
Amortization of below market hotel management agreement	582			—			1,203			—
Activist shareholder costs	(1		)	342			1,636			342
Hotel acquisitions costs	182			—			182			—
Adjustments from consolidated affiliates	(985		)	(85		)	(881		)	(455		)
Comparable EBITDA	$	63,708		$	58,345		$	248,966		$	213,188

(a) Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries.

12

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Reconciliation of Net Income (Loss) Attributable to SHR Common Shareholders to

Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO

(in thousands, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
	2014			2013			2014			2013
Net income (loss) attributable to SHR common shareholders	$	1,413		$	3,223		$	320,399		$	(13,191	)
Depreciation and amortization—continuing operations	36,493			23,207			119,688			96,712
Depreciation and amortization—discontinued operations	—			2,352			1,275			9,306
Corporate depreciation	(125		)	(125		)	(495		)	(508		)
Loss (gain) on sale of assets—continuing operations	—			430			(729		)	1,185
Gain on sale of assets, net of tax—discontinued operations	(276		)	—			(156,768		)	—
Gain on consolidation of affiliates	(20		)	—			(143,471		)	—
Realized portion of deferred gain on sale-leaseback	(48		)	(53		)	(207		)	(207		)
Noncontrolling interests adjustments	(100		)	(123		)	(398		)	(400		)
Adjustments from consolidated affiliates	(2,216		)	(1,813		)	(8,188		)	(7,378		)
Adjustments from unconsolidated affiliates	—			3,482			5,077			14,135
FFO	35,121			30,580			136,183			99,654
Redeemable noncontrolling interests	124			183			1,619			438
FFO—Fully Diluted	35,245			30,763			137,802			100,092
Impairment losses and other charges	—			—			—			728
Non-cash interest rate derivative activity—continuing operations	3,204			(2,355		)	6,335			(9,228		)
Non-cash interest rate derivative activity—discontinued operations	—			(141		)	—			(2,389		)
Loss on early extinguishment of debt—continuing operations	2,010			—			2,619			—
Loss on early extinguishment of debt—discontinued operations	—			—			272			—
Foreign currency exchange loss (gain)—continuing operations (a)	41			(16		)	116			(42		)
Foreign currency exchange loss (gain)—discontinued operations (a)	—			150			(32		)	(1		)
Amortization of debt discount	623			—			1,869			—
Amortization of below market hotel management agreement	582			—			1,203			—
Activist shareholder costs	(1		)	342			1,636			342
Hotel acquisition costs	182			—			182			—
Excess of redemption liability over carrying amount of redeemed preferred stock	3,321			—			10,233			—
Adjustments from consolidated affiliates	(985		)	—			(985		)	—
Comparable FFO	$	44,222		$	28,743		$	161,250		$	89,502
Comparable FFO per fully diluted share	$	0.17		$	0.14		$	0.68		$	0.43
Weighted average diluted shares (b)	257,334			209,800			236,092			209,328

(a) Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries.

(b) Excludes shares related to the JW Marriott Essex House Hotel put option.

13

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Debt Summary

(dollars in thousands)

Debt	Interest Rate		Spread (a)	Loan Amount			Maturity (b)
Fairmont Scottsdale Princess (c)	0.53	%	36 bp	$	117,000		April 2015
Westin St. Francis	6.09	%	Fixed	209,588			June 2017
Fairmont Chicago	6.09	%	Fixed	93,124			June 2017
Hyatt Regency La Jolla (d)	4.50% / 10.00%		400 bp / Fixed	89,247			December 2017
Hotel del Coronado (e)	3.82	%	365 bp	475,000			March 2018
Bank credit facility (f)	2.17	%	200 bp	—			April 2019
Four Seasons Washington, D.C. (g)	2.42	%	225 bp	120,000			June 2019
JW Marriott Essex House Hotel (h)	3.12	%	295 bp	225,000			January 2020
Loews Santa Monica Beach Hotel (i)	2.72	%	255 bp	120,000			May 2021
InterContinental Chicago	5.61	%	Fixed	142,442			August 2021
InterContinental Miami (j)	3.99	%	Fixed	115,000			September 2024
				1,706,401
Unamortized discount (c)				(623		)
				$	1,705,778

(a) Spread over LIBOR (0.17% at December 31, 2014). See (d) below for interest on the Hyatt Regency La Jolla loan.

(b) Includes extension options.

(c) On March 31, 2014, we acquired the remaining 50.0% equity interest in the Fairmont Scottsdale Princess hotel, resulting in the Fairmont Scottsdale Princess hotel becoming wholly-owned by us. In connection with the acquisition, we consolidated the Fairmont Scottsdale Princess hotel and became fully obligated under the entire mortgage loan secured by the Fairmont Scottsdale Princess hotel. We recorded the mortgage loan at its fair value, which included a debt discount, which is being amortized as additional interest expense over the maturity period of the loan. We are evaluating financing alternatives given the impending maturity date.

(d) Interest on $72,000,000 of the total principal amount is paid monthly at an annual rate of LIBOR plus 4.00%, subject to a 0.50% LIBOR floor, and interest on $17,247,000 of the total principal amount is paid monthly at an annual fixed rate of 10.00%.

(e) On June 11, 2014, we acquired the remaining 63.6% equity interest in the Hotel del Coronado, resulting in the Hotel del Coronado becoming wholly-owned by us. In connection with the acquisition, we consolidated the Hotel del Coronado and became fully obligated under the entire outstanding balance of the mortgage and mezzanine loans secured by the Hotel del Coronado.

(f) On April 25, 2014, we entered into a new $300,000,000 secured bank credit facility, which replaced the previous secured bank credit facility.

(g) On June 30, 2014, we refinanced the loan secured by the Four Seasons Washington, D.C. hotel and entered into a new $120,000,000 limited recourse loan agreement.

(h) On December 30, 2014, we refinanced the mortgage loan secured by the JW Marriott Essex House Hotel and entered into a new $225,000,000 limited recourse loan agreement.

(i) On May 29, 2014, we refinanced the loan secured by the Loews Santa Monica Beach Hotel and entered into a new $120,000,000 limited recourse loan agreement.

(j) On July 7, 2014, we paid off the outstanding balance on the prior mortgage loan secured by the InterContinental Miami hotel. We entered into a new $115,000,000 loan secured by the InterContinental Miami hotel on August 29, 2014.

14

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Debt Summary (Continued)

(in thousands)

Future scheduled debt principal payments (including extension options) are as follows:

Years ending December 31,	Amount
2015	$	118,796
2016	2,031
2017	394,131
2018	477,299
2019	122,433
Thereafter	591,711
	1,706,401
Unamortized discount	(623		)
	$	1,705,778
Percent of fixed rate debt	33.8		%
Weighted average interest rate (k)	3.98		%
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year)	4.91

 (k) Excludes the amortization of deferred financing costs.

15

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

Portfolio Data

Portfolio at December 31, 2014

(dollars in thousands)

Hotel	Location	Number of Rooms	% of Total Rooms		4th QTR 2014 Property EBITDA		% of 4th QTR 2014 Property EBITDA
United States:
Westin St. Francis	San Francisco, CA	1,195	15	%	$	12,235	16	%
InterContinental Chicago	Chicago, IL	792	10	%	5,983		8	%
Hotel del Coronado (a)	Coronado, CA	757	9	%	7,639		10	%
Fairmont Chicago	Chicago, IL	687	9	%	4,761		6	%
Fairmont Scottsdale Princess (b)	Scottsdale, AZ	649	8	%	5,844		8	%
InterContinental Miami	Miami, FL	641	8	%	4,651		6	%
JW Marriott Essex House Hotel (c)	New York, NY	510	6	%	12,651		17	%
Hyatt Regency La Jolla (d)	La Jolla, CA	417	5	%	1,039		1	%
Ritz-Carlton Laguna Niguel	Dana Point, CA	396	5	%	4,531		6	%
Marriott Lincolnshire Resort	Lincolnshire, IL	389	5	%	958		1	%
Loews Santa Monica Beach Hotel	Santa Monica, CA	347	5	%	2,706		4	%
Ritz-Carlton Half Moon Bay	Half Moon Bay, CA	261	3	%	3,976		5	%
Four Seasons Washington, D.C.	Washington, D.C.	222	3	%	5,011		7	%
Four Seasons Resort Scottsdale at Troon North (e)	Scottsdale, AZ	210	3	%	171		—	%
Four Seasons Silicon Valley	East Palo Alto, CA	200	2	%	2,921		4	%
Four Seasons Jackson Hole	Teton Village, WY	124	2	%	665		1	%
Total United States		7,797	98	%	75,742		100	%
European:
Marriott Hamburg (f)	Hamburg, Germany	278	2	%	N/A		N/A
		8,075	100	%	75,742		100	%

(a) Prior to June 11, 2014, we accounted for our 36.4% ownership interest in this hotel using the equity method of accounting. On June 11, 2014, we acquired the remaining 63.6% ownership interest in this hotel and began consolidating the operations of this hotel.

(b) Prior to March 31, 2014, we accounted for our 50.0% ownership interest in this hotel using the equity method of accounting. On March 31, 2014 we acquired the remaining 50.0% ownership interest in this hotel and began consolidating the operations of this hotel.

(c) We own a 51.0% controlling interest in the entity that owns the JW Marriott Essex House Hotel and consolidate this hotel for reporting purposes. Fourth quarter results include a payment pursuant to the JW Marriott Essex House Hotel NOI guarantee of $5.8 million.

(d) We own a 53.5% controlling interest in the entity that owns the Hyatt Regency La Jolla hotel and consolidate this hotel for reporting purposes.

(e) On December 9, 2014, we purchased the Four Seasons Resort Scottsdale at Troon North. We have included the results of this hotel in the percentage of Property EBITDA and quarterly Property EBITDA calculation above only for our period of ownership.

(f) We sublease this property and have not included it in the percentage of Property EBITDA calculation.

16

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Four Quarters Ended December 31, 2014

Seasonality by Geographic Region

(dollars in thousands)

The Total United States portfolio is derived from our hotel portfolio at December 31, 2014, consisting of all properties located in the United States, and 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel. We have one acquisition property, the Four Seasons Resort Scottsdale at Troon North, which was acquired on December 9, 2014. Fourth quarter and year end results include payments pursuant to the JW Marriott Essex House Hotel NOI guarantee of $5.8 million and $12.8 million in 2014 and 2013, respectively.

Total United States Hotels (as of December 31, 2014)
Acquisition property revenues - 1 Property and 210 Rooms
Same store property revenues - 15 Properties and 7,587 Rooms
	Three Months Ended
	March 31, 2014			June 30, 2014			September 30, 2014			December 31, 2014			Total
Acquisition property revenues (a)	$	—		$	—		$	—		$	2,539		$	2,539
Acquisition property revenues (b)	6,209			12,281			6,180			10,113			34,783
Same store property revenues	262,402			308,648			303,878			308,938			1,183,866
Total pro forma revenues	$	268,611		$	320,929		$	310,058		$	321,590		$	1,221,188
Total property seasonality %	22.0		%	26.3		%	25.4		%	26.3		%	100.0		%

(a) Acquisition property revenues for our period of ownership

(b) Acquisition property revenues prior to our period of ownership

17

Supplemental Financial Information

Three Months and Years Ended December 31, 2014 and 2013

Operating Statistics by Geographic Region

The Same Store United States portfolio is derived from our hotel portfolio at December 31, 2014, consisting of all properties located in the United States, including 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel but excluding the Four Seasons Scottsdale Resort at Troon North for the three months and years ended December 31, 2014 and 2013.

Same Store United States Hotels (as of December 31, 2014)

15 Properties

7,587 Rooms

	Three Months Ended December 31,									Years Ended December 31,
	2014			2013			Change			2014			2013			Change
ADR	$	302.34		$	285.47		5.9		%	$	300.00		$	284.32		5.5	%
Average Occupancy	72.8		%	71.8		%	1.0		pts	75.4		%	74.8		%	0.6	pts
RevPAR	$	220.03		$	205.08		7.3		%	$	226.13		$	212.73		6.3	%
Total RevPAR	$	442.54		$	411.53		7.5		%	$	427.55		$	397.01		7.7	%
Property EBITDA Margin	24.5		%	25.9		%	(1.4	)	pts	25.1		%	24.4		%	0.7	pts

Same Store United States Hotels - Adjusted (a) (as of December 31, 2014)

15 Properties

7,587 Rooms

	Three Months Ended December 31,								Years Ended December 31,
	2014			2013			Change		2014			2013			Change
ADR	$	302.34		$	285.47		5.9	%	$	300.00		$	284.32		5.5	%
Average Occupancy	72.8		%	71.8		%	1.0	pts	75.4		%	74.8		%	0.6	pts
RevPAR	$	220.03		$	205.08		7.3	%	$	226.13		$	212.73		6.3	%
Total RevPAR	$	420.42		$	393.23		6.9	%	$	421.38		$	392.40		7.4	%
Property EBITDA Margin	24.0		%	22.4		%	1.6	pts	25.1		%	23.5		%	1.6	pts

(a) Total RevPAR and EBITDA Margin statistics have been modified to take into account certain adjustments, including those related to the adoption of the Uniform System of Accounts for the Lodging Industry, Eleventh Revised Edition (the "USALI Eleventh Revised Edition"). Both metrics exclude payments recognized pursuant to the JW Marriott Essex House NOI guarantee of $5.8 million and $12.8 million in the three months and years ended December 31, 2014 and 2013, respectively. EBITDA margins also exclude amortization of the below market hotel management agreement related to the Hotel del Coronado of $0.6 million and $1.2 million for the three months and year ended December 31, 2014, respectively.

18

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Selected Financial and Operating Information by Property

(in thousands, except operating information)

The following tables present selected financial and operating information by property for the three and months and years ended December 31, 2014 and 2013. Property EBITDA reflects property net operating income or loss plus depreciation and amortization. The following financial and operating information is unadjusted for changes resulting from the adoption of the USALI Eleventh Revised Edition in 2014. The information in the following tables includes (i) payments recognized pursuant to the JW Marriott Essex House NOI guarantee of $5.8 million and $12.8 million in the three months and years ended December 31, 2014 and 2013, respectively and (ii) amortization of the below market hotel management agreement related to the Hotel del Coronado of $0.6 million and $1.2 million for the three months and year ended December 31, 2014, respectively.

	Three Months Ended December 31,								Years Ended December 31,
UNITED STATES HOTELS:	2014			2013			Change		2014			2013			Change
FAIRMONT CHICAGO
Selected Financial Information:
Total revenues	$	20,037		$	14,681		36.5	%	$	64,753		$	59,245		9.3		%
Property EBITDA	$	4,761		$	2,788		70.8	%	$	13,854		$	12,601		9.9		%
Selected Operating Information:
Rooms	687			687			—		687			687			—
Average occupancy	65.5		%	62.5		%	3.0	pts	66.4		%	69.3		%	(2.9	)	pts
ADR	$	240.87		$	221.62		8.7	%	$	224.89		$	213.71		5.2		%
RevPAR	$	157.68		$	138.53		13.8	%	$	149.27		$	148.11		0.8		%
Total RevPAR	$	317.01		$	232.29		36.5	%	$	258.23		$	236.27		9.3		%
FAIRMONT SCOTTSDALE PRINCESS
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 100% and 50% as of December 31, 2014 and 2013, respectively):
Total revenues	$	30,656		$	23,634		29.7	%	$	107,474		$	93,133		15.4		%
Property EBITDA	$	5,844		$	4,111		42.2	%	$	25,087		$	18,883		32.9		%
Selected Operating Information:
Rooms	649			649			—		649			649			—
Average occupancy	73.6		%	68.8		%	4.8	pts	73.3		%	70.4		%	2.9		pts
ADR	$	253.93		$	241.33		5.2	%	$	250.14		$	237.72		5.2		%
RevPAR	$	186.91		$	166.07		12.5	%	$	183.38		$	167.27		9.6		%
Total RevPAR	$	513.43		$	395.83		29.7	%	$	453.70		$	393.16		15.4		%
FOUR SEASONS JACKSON HOLE
Selected Financial Information:
Total revenues	$	8,308		$	7,393		12.4	%	$	43,408		$	40,698		6.7		%
Property EBITDA	$	665		$	496		34.1	%	$	9,072		$	8,476		7.0		%
Selected Operating Information:
Rooms	124			124			—		124			124			—
Average occupancy	40.1		%	38.8		%	1.3	pts	59.7		%	59.0		%	0.7		pts
ADR	$	621.23		$	578.68		7.4	%	$	644.10		$	614.39		4.8		%
RevPAR	$	249.19		$	224.51		11.0	%	$	384.45		$	362.55		6.0		%
Total RevPAR	$	728.27		$	648.09		12.4	%	$	959.08		$	899.21		6.7		%
FOUR SEASONS SCOTTSDALE RESORT AT TROON NORTH
No table has been provided since we did not own the property for the entire periods presented.

19

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

	Three Months Ended December 31,									Years Ended December 31,
	2014			2013			Change			2014			2013			Change
FOUR SEASONS SILICON VALLEY
Selected Financial Information:
Total revenues	$	10,064		$	9,711		3.6		%	$	38,428		$	36,040		6.6		%
Property EBITDA	$	2,921		$	2,414		21.0		%	$	9,865		$	8,143		21.1		%
Selected Operating Information:
Rooms	200			200			—			200			200			—
Average occupancy	70.3		%	72.2		%	(1.9	)	pts	74.5		%	79.0		%	(4.5	)	pts
ADR	$	432.34		$	368.84		17.2		%	$	404.95		$	341.43		18.6		%
RevPAR	$	304.09		$	266.30		14.2		%	$	301.80		$	269.74		11.9		%
Total RevPAR	$	546.97		$	527.78		3.6		%	$	526.41		$	493.70		6.6		%
FOUR SEASONS WASHINGTON, D.C.
Selected Financial Information:
Total revenues	$	20,300		$	19,930		1.9		%	$	71,362		$	68,756		3.8		%
Property EBITDA	$	5,011		$	5,258		(4.7	)	%	$	16,272		$	16,324		(0.3	)	%
Selected Operating Information:
Rooms	222			222			—			222			222			—
Average occupancy	68.4		%	72.1		%	(3.7	)	pts	72.6		%	72.1		%	0.5		pts
ADR	$	688.25		$	633.26		8.7		%	$	592.42		$	577.88		2.5		%
RevPAR	$	470.93		$	456.62		3.1		%	$	429.78		$	416.63		3.2		%
Total RevPAR	$	993.92		$	975.80		1.9		%	$	880.68		$	848.53		3.8		%
HOTEL DEL CORONADO
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 100% and 36.4% as of December 31, 2014 and 2013, respectively):
Total revenues	$	33,672		$	33,115		1.7		%	$	162,479		$	148,482		9.4		%
Property EBITDA	$	7,639		$	8,668		(11.9	)	%	$	49,947		$	47,155		5.9		%
Selected Operating Information:
Rooms	757			757			—			757			757			—
Average occupancy	55.7		%	53.8		%	1.9		pts	64.2		%	66.1		%	(1.9	)	pts
ADR	$	384.27		$	355.15		8.2		%	$	424.07		$	384.11		10.4		%
RevPAR	$	214.05		$	190.92		12.1		%	$	272.23		$	253.88		7.2		%
Total RevPAR	$	483.48		$	475.49		1.7		%	$	588.04		$	537.38		9.4		%
HYATT REGENCY LA JOLLA
Selected Financial Information:
Total revenues	$	8,529		$	8,473		0.7		%	$	34,250		$	34,147		0.3		%
Property EBITDA	$	1,039		$	1,501		(30.8	)	%	$	4,417		$	6,589		(33.0	)	%
Selected Operating Information:
Rooms	417			419			(2	)		417			419			(2	)
Average occupancy	69.8		%	68.5		%	1.3		pts	68.6		%	73.3		%	(4.7	)	pts
ADR	$	159.04		$	160.87		(1.1	)	%	$	173.08		$	169.33		2.2		%
RevPAR	$	110.99		$	110.17		0.7		%	$	118.66		$	124.15		(4.4	)	%
Total RevPAR	$	222.31		$	219.81		1.1		%	$	224.76		$	223.28		0.7		%

20

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

	Three Months Ended December 31,									Years Ended December 31,
	2014			2013			Change			2014			2013			Change
INTERCONTINENTAL CHICAGO
Selected Financial Information:
Total revenues	$	20,367		$	20,232		0.7		%	$	76,900		$	76,822		0.1		%
Property EBITDA	$	5,983		$	5,583		7.2		%	$	19,264		$	18,966		1.6		%
Selected Operating Information:
Rooms	792			792			—			792			792			—
Average occupancy	83.8		%	84.4		%	(0.6	)	pts	80.8		%	79.4		%	1.4		pts
ADR	$	195.07		$	192.90		1.1		%	$	193.11		$	196.08		(1.5	)	%
RevPAR	$	163.42		$	162.81		0.4		%	$	156.03		$	155.68		0.2		%
Total RevPAR	$	279.52		$	277.67		0.7		%	$	266.02		$	265.75		0.1		%
INTERCONTINENTAL MIAMI
Selected Financial Information:
Total revenues	$	17,244		$	16,412		5.1		%	$	70,243		$	63,713		10.2		%
Property EBITDA	$	4,651		$	4,088		13.8		%	$	19,607		$	17,333		13.1		%
Selected Operating Information:
Rooms	641			641			—			641			641			—
Average occupancy	81.7		%	79.7		%	2.0		pts	84.5		%	80.7		%	3.8		pts
ADR	$	196.28		$	191.11		2.7		%	$	196.44		$	189.11		3.9		%
RevPAR	$	160.39		$	152.24		5.4		%	$	165.92		$	152.68		8.7		%
Total RevPAR	$	292.41		$	278.29		5.1		%	$	300.23		$	272.32		10.2		%
JW MARRIOTT ESSEX HOUSE HOTEL
Selected Financial Information:
Total revenues	$	35,573		$	39,259		(9.4	)	%	$	100,052		$	98,944		1.1		%
Property EBITDA	$	12,651		$	19,483		(35.1	)	%	$	21,797		$	24,505		(11.1	)	%
Selected Operating Information:
Rooms	510			510			—			510			510			—
Average occupancy	83.2		%	83.8		%	(0.6	)	pts	82.5		%	81.2		%	1.3		pts
ADR	$	521.73		$	519.88		0.4		%	$	447.38		$	441.95		1.2		%
RevPAR	$	433.90		$	435.82		(0.4	)	%	$	368.99		$	358.74		2.9		%
Total RevPAR	$	756.69		$	835.08		(9.4	)	%	$	536.43		$	526.30		1.9		%
LOEWS SANTA MONICA BEACH HOTEL
Selected Financial Information:
Total revenues	$	11,521		$	12,464		(7.6	)	%	$	55,991		$	53,642		4.4		%
Property EBITDA	$	2,706		$	3,111		(13.0	)	%	$	17,082		$	15,531		10.0		%
Selected Operating Information:
Rooms	347			342			5			347			342			5
Average occupancy	73.1		%	79.0		%	(5.9	)	pts	83.9		%	85.1		%	(1.2	)	pts
ADR	$	339.90		$	319.74		6.3		%	$	371.24		$	343.20		8.2		%
RevPAR	$	248.42		$	252.71		(1.7	)	%	$	311.60		$	291.99		6.7		%
Total RevPAR	$	360.88		$	396.15		(8.9	)	%	$	445.14		$	429.72		3.6		%

21

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

	Three Months Ended December 31,									Years Ended December 31,
	2014			2013			Change			2014			2013			Change
MARRIOTT LINCOLNSHIRE RESORT
Selected Financial Information:
Total revenues	$	9,988		$	8,671		15.2		%	$	35,019		$	32,279		8.5	%
Property EBITDA	$	958		$	599		59.9		%	$	2,683		$	1,590		68.7	%
Selected Operating Information:
Rooms	389			389			—			389			389			—
Average occupancy	56.5		%	52.3		%	4.2		pts	60.5		%	52.6		%	7.9	pts
ADR	$	137.90		$	128.37		7.4		%	$	134.95		$	131.47		2.6	%
RevPAR	$	77.85		$	67.17		15.9		%	$	81.70		$	69.14		18.2	%
Total RevPAR	$	279.07		$	242.28		15.2		%	$	246.64		$	225.49		9.4	%
RITZ-CARLTON HALF MOON BAY
Selected Financial Information:
Total revenues	$	17,964		$	16,119		11.4		%	$	67,482		$	62,092		8.7	%
Property EBITDA	$	3,976		$	3,184		24.9		%	$	14,298		$	11,962		19.5	%
Selected Operating Information:
Rooms	261			261			—			261			261			—
Average occupancy	65.8		%	66.3		%	(0.5	)	pts	69.4		%	68.1		%	1.3	pts
ADR	$	466.49		$	435.80		7.0		%	$	438.11		$	417.81		4.9	%
RevPAR	$	307.01		$	288.70		6.3		%	$	303.83		$	284.46		6.8	%
Total RevPAR	$	748.11		$	671.28		11.4		%	$	708.36		$	651.78		8.7	%
RITZ-CARLTON LAGUNA NIGUEL
Selected Financial Information:
Total revenues	$	21,966		$	16,191		35.7		%	$	93,930		$	83,129		13.0	%
Property EBITDA	$	4,531		$	2,429		86.5		%	$	29,780		$	23,333		27.6	%
Selected Operating Information:
Rooms	396			396			—			396			396			—
Average occupancy	60.7		%	53.9		%	6.8		pts	69.3		%	67.0		%	2.3	pts
ADR	$	385.16		$	350.82		9.8		%	$	420.85		$	398.30		5.7	%
RevPAR	$	233.80		$	189.22		23.6		%	$	291.82		$	266.82		9.4	%
Total RevPAR	$	602.93		$	444.41		35.7		%	$	649.85		$	575.13		13.0	%
WESTIN ST. FRANCIS
Selected Financial Information:
Total revenues	$	42,751		$	40,890		4.6		%	$	162,094		$	149,059		8.7	%
Property EBITDA	$	12,235		$	10,524		16.3		%	$	44,024		$	37,313		18.0	%
Selected Operating Information:
Rooms	1,195			1,195			—			1,195			1,195			—
Average occupancy	87.2		%	88.6		%	(1.4	)	pts	87.6		%	87.4		%	0.2	pts
ADR	$	280.42		$	252.54		11.0		%	$	269.68		$	245.48		9.9	%
RevPAR	$	244.51		$	223.69		9.3		%	$	236.25		$	214.52		10.1	%
Total RevPAR	$	388.85		$	371.93		4.5		%	$	371.63		$	341.74		8.7	%

22

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

	Three Months Ended December 31,									Years Ended December 31,
	2014			2013			Change			2014			2013			Change
EUROPEAN HOTEL:
MARRIOTT HAMBURG
Selected Financial Information:
Total revenues	$	5,683		$	6,023		(5.6	)	%	$	23,347		$	22,255		4.9	%
Property EBITDA	$	1,573		$	1,741		(9.6	)	%	$	6,529		$	6,298		3.7	%
Selected Operating Information:
Rooms	278			278			—			278			278			—
Average occupancy	84.9		%	84.0		%	0.9		pts	85.8		%	83.5		%	2.3	pts
ADR	$	195.09		$	196.14		(0.5	)	%	$	200.85		$	191.41		4.9	%
RevPAR	$	165.70		$	164.69		0.6		%	$	172.23		$	159.81		7.8	%
Total RevPAR	$	222.20		$	235.48		(5.6	)	%	$	230.08		$	219.32		4.9	%

23

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Reconciliation of Property EBITDA to EBITDA

(in thousands)

	Three Months Ended December 31,										Years Ended December 31,
	2014					2013					2014					2013
Hotel	Property EBITDA		EBITDA			Property EBITDA		EBITDA			Property EBITDA		EBITDA			Property EBITDA		EBITDA
Fairmont Chicago	$	4,761	$	4,761		$	2,788	$	2,788		$	13,854	$	13,854		$	12,601	$	12,601
Fairmont Scottsdale Princess (a)	5,844		5,844			4,111		—			25,087		11,897			18,883		—
Four Seasons Jackson Hole	665		665			496		496			9,072		9,072			8,476		8,476
Four Seasons Scottsdale Resort at Troon North (b)	—		171			—		—			—		171			—		—
Four Seasons Silicon Valley	2,921		2,921			2,414		2,414			9,865		9,865			8,143		8,143
Four Seasons Washington, D.C.	5,011		5,011			5,258		5,258			16,272		16,272			16,324		16,324
Hotel del Coronado (a)	7,639		7,639			8,668		—			49,947		29,186			47,155		—
Hyatt Regency La Jolla	1,039		1,039			1,501		1,501			4,417		4,417			6,589		6,589
InterContinental Chicago	5,983		5,983			5,583		5,583			19,264		19,264			18,966		18,966
InterContinental Miami	4,651		4,651			4,088		4,088			19,607		19,607			17,333		17,333
JW Marriott Essex House Hotel	12,651		12,651			19,483		19,483			21,797		21,797			24,505		24,505
Loews Santa Monica Beach Hotel	2,706		2,706			3,111		3,111			17,082		17,082			15,531		15,531
Marriott Lincolnshire Resort	958		958			599		599			2,683		2,683			1,590		1,590
Ritz-Carlton Half Moon Bay	3,976		3,976			3,184		3,184			14,298		14,298			11,962		11,962
Ritz-Carlton Laguna Niguel	4,531		4,531			2,429		2,429			29,780		29,780			23,333		23,333
Westin St. Francis	12,235		12,235			10,524		10,524			44,024		44,024			37,313		37,313
Marriott Hamburg (c)	1,573		384			1,741		151			6,529		533			6,298		343
	$	77,144	$	76,126		$	75,978	$	61,609		$	303,578	$	263,802		$	275,002	$	203,009
Adjustments:
Impairment losses and other charges			—					—					—					(728		)
Corporate expenses			(7,102		)			(7,013		)			(26,898		)			(25,176		)
Interest income			146					12					269					53
Loss on early extinguishment of debt			(2,010		)			—					(2,619		)			—
Equity in (losses) earnings of unconsolidated affiliates			(30		)			(265		)			5,237					2,987
Foreign currency exchange (loss) gain			(41		)			16					(116		)			42
Gain on consolidation of affiliate			20					—					143,471					—
Other (expenses) income, net			(130		)			(359		)			952					(314		)
Income from discontinued operations			276					3,834					159,378					5,574
Depreciation expense—discontinued operations			—					2,352					1,275					9,306
Interest expense—discontinued operations			—					1,566					1,326					7,087
Income taxes—discontinued operations			—					239					833					1,290
Income taxes—sale of assets			—					—					20,451					—
Noncontrolling interest in consolidated affiliates			(1,458		)			(6,341		)			4,654					1,126
Adjustments from consolidated affiliates			(4,072		)			(3,589		)			(15,756		)			(14,604		)
Adjustments from unconsolidated affiliates			(13		)			5,553					8,419					23,489
Other adjustments			420					(37		)			581					(1,503		)
EBITDA			$	62,132				$	57,577				$	565,259				$	211,638

(a) On March 31, 2014, we acquired the remaining ownership interest in the Fairmont Scottsdale Princess hotel and consolidated the property. On June 11, 2014, we acquired the remaining ownership interest in the Hotel del Coronado and consolidated the property. EBITDA for the three months and year ended December 31, 2014 represents revenue and expenses generated by these properties subsequent to the consolidation of these properties. Prior to the acquisitions on March 31, 2014 and June 11, 2014, we accounted for these properties under the equity method of accounting. EBITDA related to our interest in these properties while they were accounted for under the equity method of accounting is reflected in adjustments from unconsolidated affiliates. Property EBITDA represents 100% of revenue and expenses generated by these properties.

24

(b) On December 9, 2014, we purchased the Four Seasons Scottsdale Resort at Troon North. We have not included the results of these hotels in Property EBITDA for the three months and years ended December 31, 2014 and 2013 above since we did not own the property for the entire periods.

(c) We have a leasehold interest in and sublease this property. Therefore, EBITDA represents the lease revenue less the lease expense recorded in our statements. Property EBITDA represents the revenue less expenses generated by the property.

25

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2014 and 2013

Reconciliation of Property EBITDA to Comparable EBITDA

(in thousands)

	Three Months Ended December 31, 2014							Year Ended December 31, 2014
	Property EBITDA		Adjustments			Comparable EBITDA		Property EBITDA		Adjustments			Comparable EBITDA
Urban Hotels:
Fairmont Chicago	$	4,761	$	—		$	4,761	$	13,854	$	—		$	13,854
Four Seasons Silicon Valley	2,921		—			2,921		9,865		—			9,865
Four Seasons Washington, D.C.	5,011		—			5,011		16,272		—			16,272
Hyatt Regency La Jolla	1,039		(436		)	603		4,417		(1,946		)	2,471
InterContinental Chicago	5,983		—			5,983		19,264		—			19,264
InterContinental Miami	4,651		—			4,651		19,607		—			19,607
JW Marriott Essex House Hotel	12,651		(6,019		)	6,632		21,797		(10,378		)	11,419
Westin St. Francis	12,235		—			12,235		44,024		—			44,024
Total Urban Hotels	49,252		(6,455		)	42,797		149,100		(12,324		)	136,776
Resorts:
Fairmont Scottsdale Princess	5,844		—			5,844		25,087		(6,626		)	18,461
Four Seasons Jackson Hole	665		—			665		9,072		—			9,072
Four Seasons Scottsdale Resort at Troon North	—		171			171		—		171			171
Hotel del Coronado	7,639		581			8,220		49,947		(12,756		)	37,191
Loews Santa Monica Beach Hotel	2,706		—			2,706		17,082		—			17,082
Marriott Lincolnshire Resort	958		—			958		2,683		—			2,683
Ritz-Carlton Half Moon Bay	3,976		—			3,976		14,298		—			14,298
Ritz-Carlton Laguna Niguel	4,531		—			4,531		29,780		—			29,780
Total Resorts	26,319		752			27,071		147,949		(19,211		)	128,738
European Hotel:
Marriott Hamburg	1,573		(1,237		)	336		6,529		(6,203		)	326
	$	77,144	$	(6,940	)	$	70,204	$	303,578	$	(37,738	)	$	265,840
	% of QTR Comparable EBITDA							% of YTD Comparable EBITDA
Urban Hotels	61				%			52				%
Resorts	39				%			48				%
Total	100				%			100				%

Total United States Urban Hotels (as of December 31, 2014)
8 Properties
4,664 Rooms
	Three Months Ended December 31,									Years Ended December 31,
	2014			2013			Change			2014			2013			Change
ADR	$	289.11		$	274.63		5.3		%	$	272.46		$	259.43		5.0		%
Average Occupancy	79.0		%	79.0		%	—		pts	79.3		%	79.4		%	(0.1	)	pts
RevPAR	$	228.54		$	216.95		5.3		%	$	216.20		$	206.06		4.9		%
Total RevPAR	$	407.44		$	394.97		3.2		%	$	362.96		$	344.13		5.5		%
Property EBITDA Margin	28.2		%	30.5		%	(2.3	)	pts	24.1		%	24.2		%	(0.1	)	pts
Total United States Resorts (as of December 31, 2014)
8 Properties
3,133 Rooms
	Three Months Ended December 31,									Years Ended December 31,
	2014			2013			Change			2014			2013			Change
ADR	$	330.47		$	308.16		7.2		%	$	350.84		$	331.20		5.9		%
Average Occupancy	62.8		%	60.4		%	2.4		pts	69.0		%	67.5		%	1.5		pts
RevPAR	$	207.41		$	186.08		11.5		%	$	242.08		$	223.40		8.4		%
Total RevPAR	$	499.04		$	438.01		13.9		%	$	530.72		$	481.56		10.2		%
Property EBITDA Margin	19.4		%	19.2		%	0.2		pts	26.1		%	24.7		%	1.4		pts

26

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 2014

2015 Guidance

(in millions, except per share data)

	Year Ended December 31, 2015
Operational Guidance	Low Range		High Range
Total United States and United States same store Total RevPAR growth	4.0	%	6.0	%
Total United States and United States same store RevPAR growth	5.0	%	7.0	%

	Year Ended December 31, 2015
Comparable EBITDA Guidance	Low Range			High Range
Net income attributable to common shareholders	$	50.1		$	70.1
Depreciation and amortization	158.9			158.9
Interest expense	93.3			93.3
Income taxes	8.1			8.1
Noncontrolling interests	0.2			0.2
Adjustments from consolidated affiliates	(12.6		)	(12.6		)
Preferred shareholder dividends	0.1			0.1
Realized portion of deferred gain on sale-leasebacks	(0.2		)	(0.2		)
Other adjustments	2.1			2.1
Comparable EBITDA	$	300.0		$	320.0

	Year Ended December 31, 2015
Comparable FFO Guidance	Low Range			High Range
Net income attributable to common shareholders	$	50.1		$	70.1
Depreciation and amortization	158.3			158.3
Realized portion of deferred gain on sale-leasebacks	(0.2		)	(0.2		)
Noncontrolling interests	0.2			0.2
Adjustments from consolidated affiliates	(5.9		)	(5.9		)
Interest rate swap OCI amortization	10.3			10.3
Other adjustments	2.7			2.7
Comparable FFO	$	215.5		$	235.5
Comparable FFO per diluted share	$	0.77		$	0.85

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