Strategic Hotels & Resorts (BEE+C) 8-K Strategic Hotel Capital, Inc. Reports Third Quarter

EXHIBIT 99.1

STRATEGIC HOTEL CAPITAL, INC. REPORTS THIRD QUARTER

FINANCIAL RESULTS

Chicago, IL – November 9, 2004 –Strategic Hotel Capital, Inc. (NYSE:SLH) (“Strategic Hotel” or “the company”)today reported results for the quarter ended September 30, 2004 and its business outlook for the remainder of 2004.

Third Quarter Highlights

• RevPAR for comparable hotels increased 9.2 percent over 3Q03.

• Occupancy rate for comparable hotels increased 5.2 percent over 3Q03.

• Hotel revenue for comparable hotels increased 23.7 percent over 3Q03.

• Closed on the Ritz-Carlton Half Moon Bay acquisition.

• Paid a quarterly dividend of $0.22 per share on October 14, 2004.

• Adjusted EBITDA of $14 million is in line with prior guidance.

Operating Results

We present certain information about our hotel operating results and statistics for the properties owned or leased by us after the IPO and refer to these properties as the “REIT” hotels.Due to our limited period of ownership of the Ritz-Carlton Half Moon Bay, we have excluded the hotel from the statistics presented below. RevPAR increased by 9.2 percent for the company owned and leased REIT hotels during the third quarter of 2004 as compared to the same period in 2003. REIT hotel occupancy was 68.9 percent, representing a 5.2 percent gain over the third quarter 2003 occupancy rate of 65.5 percent. The average daily room rate (“ADR”) for REIT hotels increased 3.8 percent, from $154.87 in 3Q03 to $160.79 for 3Q04. Net loss for the quarter totaled $3.1 million or $0.11 loss per diluted share. Funds from Operations (“FFO”) per diluted share was $0.17 for the three months ended September 30, 2004. As previously announced, the company’s Board of Directors declared a dividend for the quarter ended September 30, 2004 of $0.22 per share, which was paid on October 14, 2004.

“We are pleased with our operational results for the quarter that were in line with our internal guidance,” stated Laurence Geller, chief executive officer of Strategic Hotel. “We are encouraged by the signs of a sustainable recovery in the lodging sector, in particular the increased pricing power that room rates witnessed during the quarter.”

Portfolio Update

For the North American REIT hotels, comparable hotel RevPAR for the third quarter

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increased 7.9 percent compared to the third quarter of 2003, resulting from a 6.1 percent increase in occupancy and a 1.7 percent increase in ADR. Comparable hotel operating profit margins increased by 50 basis points during the third quarter.

For the European REIT hotels, comparable hotel RevPAR for the third quarter increased 12.6 percent over the third quarter of 2003, driven by a 1.6 percent increase in occupancy and a 10.8 percent increase in ADR.

Acquisition Update

During the quarter, the company closed on its previously announced acquisition of the Ritz Carlton Half Moon Bay, a 261-room ocean-side resort in Northern California. The acquisition was funded by a $75 million mortgage loan provided by an affiliate of Deutsche Bank, and by borrowings under the company’s revolving line of credit.

2004 Outlook

For the North American segment of the REIT portfolio, management expects comparable hotel RevPAR growth for the fourth quarter of 2004 to be in the range of 2.5 to 3.5 percent. For the company’s European properties, management expects comparable hotel RevPAR growth for the fourth quarter of 2004 to be in the range of 9 to 10 percent. Management is reaffirming its previous guidance for the fourth quarter 2004, and anticipates that the company’s adjusted EBITDA should be in the range of $18.8 million to $19.9 million, net loss in the range of $1.6 million to $0.8 million and diluted FFO in the range of $9.8 million to $10.9 million. This outlook assumes a continuation in the economic and lodging sector recovery.

As management is in the initial phase of the portfolio’s hotel budgetary process for 2005, the company anticipates that it will be prepared to issue formal guidance for 2005 in conjunction with the fourth quarter year-end 2004 earnings release.

Earnings Call

Management will conduct its quarterly conference call for investors and other interested parties on Tuesday, November 9, 2004 at 12:00 p.m. Eastern Time (ET).

The conference call will be accessible by telephone and through the Internet. Interested individuals are invited to listen to the call by telephone at 877-691-0877. To participate in the webcast, log on to http://www.shci.com or http://fulldisclosure.com 15 minutes before the call to download the necessary software.

About the Company

Strategic Hotel Capital, Inc., is a real estate investment trust (REIT) which owns and asset manages high-end hotels and resorts. The company has ownership interests in 15 properties with an aggregate of 6,192 rooms. For further information, please visit the company’s website atwww.shci.com.

This press release contains forward-looking statements about Strategic Hotel Capital,

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Inc. (the “Company”). Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including but not limited to the following: the uncertainty of the national economy; economic conditions generally and the real estate market specifically; the effect of threats of terrorism and increased security precautions on travel patterns and hotel bookings; the outbreak of hostilities and international political instability; legislative or regulatory changes, including changes to laws governing the taxation of REITs; cash available for capital expenditures; availability of capital; ability to obtain or refinance debt; rising interest rates; rising insurance premiums; competition; demand for hotel rooms in our current and proposed market areas; and changes in generally accepted accounting principles, policies and guidelines applicable to REITs. Additional risks are discussed in the Company’s filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Strategic Hotel Capital, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations

(In Thousands, Except Per Share Data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2004			2003			2004			2003
Revenues:
Rooms	$	44,544		$	76,391		$	215,937		$	232,958
Food and beverage		25,030			35,992			110,148			117,057
Other hotel operating revenue		9,798			12,993			36,994			40,454
		79,372			125,376			363,079			390,469
Lease revenue		5,692			5,127			20,919			21,372
Total revenues		85,064			130,503			383,998			411,841
Operating Costs and Expenses:
Rooms		11,314			20,419			54,922			59,695
Food and beverage		19,510			29,674			85,155			91,682
Other departmental expenses		26,057			36,604			103,554			108,284
Management fees		2,997			4,163			13,285			13,861
Other property level expenses		5,769			8,010			23,927			26,746
Lease expense		3,189			—			3,189			—
Depreciation and amortization		10,753			19,988			50,810			62,444
Corporate expenses		4,299			4,755			24,493			16,272
Total operating costs and expenses		83,888			123,613			359,335			378,984
Operating income		1,176			6,890			24,663			32,857
Interest expense		6,254			28,083			57,097			82,384
Interest income		(43	)		(704	)		(1,013	)		(2,332	)
Loss on early extinguishment of debt		17			2,977			21,963			14,528
Other (income) expenses, net		(1,359	)		1,722			684			5,032
Loss before income taxes, minority interests and discontinued operations		(3,693	)		(25,188	)		(54,068	)		(66,755	)
Income tax expense (benefit)		405			(2,293	)		760			(1,544	)
Minority interests		(989	)		155			(1,917	)		2,834
Loss from continuing operations		(3,109	)		(23,050	)		(52,911	)		(68,045	)
Income from discontinued operations		—			775			75,662			25,684
Net (Loss) Income		(3,109	)		(22,275	)		22,751			(42,361	)
Basic and Diluted (Loss) Income Per Share:
Loss from continuing operations per share	$	(0.11	)	$	(1.21	)	$	(2.36	)	$	(4.18	)
Income from discontinued operations per share		—			0.04			3.38			1.58
Net (loss) income per share	$	(0.11	)	$	(1.17	)	$	1.02		$	(2.60	)
Weighted-average common shares outstanding		28,689,288			19,007,969			22,379,762			16,297,666

The company’s Consolidated Statements of Operations for the third quarter and year to date 2004 include for the entire period: the results of the 15 hotels currently owned and leased by the company, referred to as the REIT Hotels; and before June 29, 2004, the date of the IPO, the results of 7 other hotels, which were distributed out of the company and in which the company no longer has an ownership interest.

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Strategic Hotel Capital, Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheet

(In Thousands, Except Share Data)

	September 30, 2004			June 30, 2004
Assets
Property and equipment	$	953,904		$	844,709
Less accumulated depreciation		(210,616	)		(200,111	)
Net property and equipment		743,288			644,598
Goodwill and intangible assets (net of accumulated amortization of $118 and $0)		73,614			55,224
Investment in hotel joint ventures		10,934			10,473
Cash and cash equivalents		32,123			58,765
Restricted cash and cash equivalents		27,114			21,105
Accounts receivable (net of allowance for doubtful accounts of $346 and $348)		23,486			21,235
Deferred financing costs (net of accumulated amortization of $724 and $0)		11,872			11,639
Other assets		75,602			67,250
Total assets	$	998,033		$	890,289
Liabilities and Owners’ Equity
Liabilities:
Accounts payable and accrued expenses	$	56,159		$	52,473
Distributions payable		8,721			—
Bank credit facility		50,000			31,500
Mortgages and other debt payable		490,017			415,418
Deferred fees on management contracts		2,377			2,421
Deferred gain on sale of hotels		110,057			109,209
Total liabilities		717,331			611,021
Minority interests		66,554			79,591
Owners’ equity:
Distributions to members		(246,808	)		(227,829	)
Common shares ($0.01 par value; 150,000,000 common shares authorized; 30,035,701 and 26,254,034 common shares issued and outstanding)		300			263
Additional paid-in capital		730,020			686,065
Deferred compensation		(2,193	)		(2,921	)
Accumulated deficit		(262,455	)		(259,346	)
Accumulated distributions to owners		(6,652	)		—
Accumulated other comprehensive income		1,936			3,445
Total owners’ equity		214,148			199,677
Total liabilities and owners’ equity	$	998,033		$	890,289

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Strategic Hotel Capital, Inc. and Subsidiaries

Reconciliation of Net Income (Loss) to Funds from Operations (FFO) and EBITDA

(Unaudited)

We present two non-GAAP financial measures herein for the company that we believe are useful to investors as key measures of our operating performance: Funds from Operations, or FFO; and Earnings Before Interest Expense, Taxes, Depreciation and Amortization, or EBITDA. Reconciliation of these measures to net income (loss), the most directly comparable GAAP measure, is set forth in the following tables.

We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT, which adopted a definition of FFO in order to promote an industry-wide standard measure of REIT operating performance that would not have certain drawbacks associated with net income under GAAP. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding gains (or losses) from sales of property plus real estate-related depreciation and amortization, and after adjustments for our portion of these items related to unconsolidated partnerships and joint ventures. We also present diluted FFO, which is FFO less convertible debt interest expense and minority interest expense on convertible minority interests. We believe that the presentation of FFO and diluted FFO provides useful information to investors regarding our results of operations because they are measures of our ability to service debt, 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.

EBITDA represents net income (losses) excluding: (i) interest expense, (ii) income tax expense, including deferred income tax benefits and expenses applicable to our foreign subsidiaries and income taxes applicable to sale of assets; and (iii) depreciation and amortization. EBITDA also excludes interest expense, income tax expense and depreciation and amortization of our equity method investments. EBITDA is presented on a full participation basis, which means we have assumed conversion of all minority interests into SHCI common shares. We also present adjusted EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks. We believe EBITDA and adjusted EBITDA are useful to an investor in evaluating our operating performance because they provide 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 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 adjusted EBITDA as measures in determining the value of acquisitions and dispositions.

We caution investors that amounts presented in accordance with our definitions of FFO, diluted FFO, EBITDA and adjusted 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, diluted FFO, EBITDA and adjusted EBITDA should not be considered as an alternative measure of our net loss or operating performance. FFO, diluted FFO, EBITDA and adjusted 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, diluted FFO, EBITDA and adjusted 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 loss (income). In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. Below, we include a quantitative reconciliation of FFO, diluted FFO, EBITDA and adjusted EBITDA to the most directly comparable GAAP financial performance measure, which is net income (loss).

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	Three months ended September 30,						Nine months ended September 30,
	2004			2003			2004			2003
	(unaudited) (In thousands)
Net (loss) income	$	(3,109	)	$	(22,275	)	$	22,751		$	(42,361	)
Depreciation and amortization-continuing operations		10,753			19,988			50,810			62,444
Depreciation and amortization-discontinued operations		—			1,256			—			4,508
Gain on sale of assets-discontinued operations		—			(100	)		(75,982	)		(21,073	)
Realized portion of deferred gain on sale leasebacks		(1,122	)		—			(1,122	)		—
Deferred tax expense on realized portion of deferred gain on sale leasebacks		322			—			322			—
Minority interest adjustments		(2,807	)		(113	)		(2,931	)		(363	)
Joint venture adjustments		881			757			2,680			2,490
FFO		4,918			(487	)		(3,472	)		5,645
Convertible debt interest expense		—			2,126			4,105			12,834
Convertible minority interests		1,818			268			1,014			3,197
FFO-diluted	$	6,736		$	1,907		$	1,647		$	21,676
Net (loss) income	$	(3,109	)	$	(22,275	)	$	22,751		$	(42,361	)
Depreciation and amortization-continuing operations		10,753			19,988			50,810			62,444
Depreciation and amortization-discontinued operations		—			1,256			—			4,508
Interest expense-continuing operations		6,254			28,083			57,097			82,384
Interest expense-discontinued operations		—			1,406			577			4,891
Income taxes		744			(411	)		1,585			1,215
Minority interests		(989	)		155			(1,917	)		2,834
Joint venture adjustments		1,505			776			6,203			4,617
EBITDA	$	15,158		$	28,978		$	137,106		$	120,532
Realized portion of deferred gain on sale leasebacks		(1,122	)		—			(1,122	)		—
Adjusted EBITDA	$	14,036		$	28,978		$	135,984		$	120,532

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Strategic Hotel Capital, Inc. and Subsidiaries

Reconciliation of Net Income (Loss) to EBITDA and FFO for 4^th Quarter Forecast

	Three months ended December 31, 2004
	Low-End of Range			High-End of Range
	(in millions)
Net loss	$	(1.6	)	$	(0.8	)
Depreciation and amortization		12.1			12.1
Interest expense		7.2			7.2
Income taxes		1.3			1.3
Minority interests		(0.5	)		(0.2	)
Joint venture adjustments		1.5			1.5
EBITDA		20.0			21.1
Realized portion of deferred gain on sale leasebacks		(1.2	)		(1.2	)
Adjusted EBITDA	$	18.8		$	19.9
Net loss	$	(1.6	)	$	(0.8	)
Depreciation and amortization		12.1			12.1
Realized portion of deferred gain on sale leasebacks		(1.2	)		(1.2	)
Deferred tax on realized deferred gain		0.3			0.3
Minority interest adjustments		(3.0	)		(3.0	)
Joint venture adjustments		0.7			0.7
FFO		7.3			8.1
Convertible minority interests		2.5			2.8
Diluted FFO	$	9.8		$	10.9

Strategic Hotel Capital, Inc. and Subsidiaries

Discussion of REIT Hotel Results and Operating Statistics

(Unaudited)

The company’s Consolidated Statements of Operations for the third quarter and year to date 2004 include for the entire period: the results of the 15 hotels currently owned and leased by the company, referred to as the REIT Hotels; and before June 29, 2004, the closing date of the IPO, the results of 7 other hotels, which were distributed out of the company and in which the company no longer has an ownership interest.

The results of operations of the distributed assets are not reflected as discontinued operations because we are deemed to have continuing involvement as a result of our agreement to asset manage those assets. As a result of this accounting presentation, we also present for REIT hotels operating results (revenues, expenses, and adjusted operating income) and selected operating statistics (RevPAR, average daily rate, average occupancy and operating margins, the latter of which is a non-GAAP financial measure). Reconciliation of adjusted operating income to net income (loss), the most directly comparable GAAP measure, is set forth in the following tables.

We present these hotel operating results on a REIT hotel basis because we believe that doing so provides investors and management with useful information for evaluating the period-to-period performance of our hotels and facilitates comparisons with other hotel REITs and hotel owners. In particular, these measures assist management and investors in distinguishing whether

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increases or decreases in revenues and/or expenses are due to operations at the REIT hotels or from the distributed assets. While management believes that presentation of REIT hotel results is a supplemental measure that provides useful information in evaluating the ongoing performance of the company, this measure is not used to allocate resources or to assess the operating performance of each of these hotels, as these decisions are based on data for individual hotels and are not based on REIT hotel results. For these reasons, we believe that REIT hotel operating results, when combined with the presentation of GAAP operating profit, revenues and expenses, provide useful information to investors and management.

As a result of the elimination of the non-REIT hotel operations, the REIT hotel operating results we present do not represent our total revenues, expenses or operating profit in accordance with GAAP. These results should not be used to evaluate our performance as a whole. Our consolidated statements of operations include such amounts, all of which should be considered by investors when evaluating our performance.

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STRATEGIC HOTEL CAPITAL, INC. AND SUBSIDIARIES

SCHEDULE OF REIT HOTELS

REIT Hotel	Location	Number of Rooms
United States:
Hyatt Regency La Jolla at Aventine	La Jolla, CA	419
Hyatt Regency Phoenix	Phoenix, AZ	712
Hyatt Regency New Orleans	New Orleans, LA	1,184
Loews Santa Monica Beach Hotel	Santa Monica, CA	342
Hilton Burbank Airport and Convention Center	Burbank, CA	488
Embassy Suites Lake Buena Vista Resort	Lake Buena Vista, FL	333
Marriott Rancho Las Palmas Resort	Rancho Mirage, CA	444
Marriott Lincolnshire Resort	Lincolnshire, IL	390
Marriott Chicago Schaumburg	Schaumburg, IL	398
Ritz-Carlton Half Moon Bay	Half Moon Bay, CA	261
Total Number of United States Rooms		4,971
European:
Paris Marriott Champs-Elysees (1)	Paris, France	192
Marriott Hamburg (2)	Hamburg, Germany	277
Inter.Continental Prague (3)	Prague, Czech Republic	372
Total Number of European Rooms		841
Mexican:
Four Seasons Punta Mita Resort	Punta Mita, Mexico	140
Four Seasons Mexico City	Mexico City, Mexico	240
Total Number of Mexican Rooms		380
Total Number of Rooms		6,192

(1) On June 29, 2004, we eliminated the collateralized guarantee related to the Paris Marriott Champs-Elysees and no longer have continuing involvement as defined by generally accepted accounting principles. Accordingly, a sale of the Paris Marriott Champs-Elysees was recorded and the leaseback has now been recorded as an operating lease as of June 29, 2004. SHCI eliminated the finance obligation on the consolidated balance sheet and now records lease expense instead of mortgage interest and depreciation expense.

(2) Subsequent to the February 2004 sale of the Hamburg Marriott, on March 1, 2004 we acquired the 65% interest we did not previously own in the joint venture that leases the hotel. On June 29, 2004, we eliminated the collateralized guarantee on the sale leaseback related to the property and no longer have continuing involvement which required treating the transaction as a financing. Accordingly, a sale of the Hamburg Marriott was recorded and the leaseback has now been recorded as an operating lease as of June 29, 2004. SHCI eliminated the finance obligation on the consolidated balance sheet and now records lease expense instead of mortgage interest and depreciation expense.

(3) We have a 35% interest in the joint venture that owns the Inter.Continental Prague and account for our investment under the equity method of accounting. Our equity in earnings (loss) of the hotel joint venture is included in other expenses, net in our consolidated statements of operations.

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Strategic Hotel Capital, Inc. and Subsidiaries

Supplemental REIT Hotel Operating Data

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2004			2003			2004			2003
	(Dollars in thousands)
REIT Hotel Revenues:
Room	$	44,544		$	38,949		$	137,867		$	127,743
Food and beverage		25,030			18,922			74,302			67,141
Other hotel operating revenue		9,798			8,251			28,300			26,982
		79,372			66,122			240,469			221,866
Lease revenue (1)		5,692			2,671			17,384			15,311
REIT hotel revenues		85,064			68,793			257,853			237,177
REIT Hotel Expenses:
Room		11,314			8,979			31,009			27,272
Food and beverage		19,510			15,403			55,290			50,100
Other departmental expenses		26,057			21,360			72,264			65,183
Management fees		2,997			2,732			10,364			9,850
Other property level expenses		5,769			3,428			14,158			11,789
Lease expense		3,189			—			3,189			—
REIT hotel expenses		68,836			51,902			186,274			164,194
REIT Hotel Adjusted Operating Income		16,228			16,891			71,579			72,983
Interest expense, net		6,211			16,211			33,846			46,851
Loss on early extinguishment of debt		17			2,977			9,300			8,561
Other (income) expenses, net (2)		(1,359	)		1,722			684			5,032
Income (loss) before income taxes and minority interests		11,359			(4,019	)		27,749			12,539
Income tax expense (benefit)		405			(2,293	)		760			(1,544	)
Minority interests		(989	)		155			(1,917	)		2,834
REIT Hotel Net Income (Loss)		11,943			(1,881	)		28,906			11,249
REIT depreciation and amortization		(10,753	)		(9,673	)		(31,125	)		(29,262	)
Corporate expenses		(4,299	)		(4,755	)		(24,493	)		(16,272	)
Non-REIT hotel results, net		—			(6,741	)		(26,199	)		(33,760	)
Income from discontinued operations		—			775			75,662			25,684
Net (Loss) Income	$	(3,109	)	$	(22,275	)	$	22,751		$	(42,361	)

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(1) Until March 1, 2004, the Hamburg Marriott was accounted for under the equity method. After March 1, 2004 when we acquired our joint venture partner’s 65% leasehold interest in the property, we record lease revenue for the Hamburg Marriott. Lease revenue for the three and nine months ended September 30, 2004 and 2003 includes revenues from the Hyatt Regency New Orleans until June 29, 2004 when we converted the Hyatt Regency New Orleans lease to a management agreement. Prior to June 29, 2004, the Paris Marriott Champs-Elysees was accounted for as a finance obligation and we consolidated its results because of a continuing involvement in supporting the financing of the property through a collateralized guarantee. On June 29, 2004, we recorded a sale and leaseback related to the Paris Marriott Champs-Elysees. Subsequent to June 29, 2004, we only earn lease revenue from the Hamburg Marriott and the Paris Marriott Champs-Elysees.

(2) Other expenses, net includes our equity in earnings or losses of our investments in the Prague hotel joint venture for the three and nine months ended September 30, 2004 and 2003. Earnings or losses from our investment in the Hamburg Marriott hotel joint venture are included in the three and nine months ended September 30, 2003 and are included in the nine months ended September 30, 2004 until the acquisition of our joint venture partner’s interest in the property on March 1, 2004.

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Strategic Hotel Capital, Inc. and Subsidiaries

Selected REIT Hotel Operating Statistics

The operating statistics below do not include the Ritz-Carlton Half Moon Bay, which was acquired on August 24, 2004.

United States Hotels (as of September 30, 2004)

9 Properties

4,710 Rooms

	Three months ended September 30,								Nine months ended September 30,
	2004			2003			Change		2004			2003			Change
Average Daily Rate	$	129.54		$	126.71		2.2	%	$	140.35		$	140.79		(0.3	)%
Average Occupancy		66.1	%		62.3	%	3.8	pts		69.1	%		66.6	%	2.5	pts
RevPAR	$	85.66		$	78.90		8.6	%	$	97.01		$	93.76		3.5	%
Operating Profit Margin		28.0	%		27.8	%	0.2	pts		33.4	%		35.1	%	(1.7	)pts

Mexican Hotels (as of September 30, 2004)

2 Properties

380 Rooms

	Three months ended September 30,								Nine months ended September 30,
	2004			2003			Change		2004			2003			Change
Average Daily Rate	$	268.48		$	268.44		0.0	%	$	346.07		$	333.14		3.9	%
Average Occupancy		61.3	%		59.1	%	2.2	pts		67.4	%		64.6	%	2.8	pts
RevPAR	$	164.46		$	158.71		3.6	%	$	233.09		$	215.06		8.4	%
Operating Profit Margin		28.0	%		25.9	%	2.1	pts		40.5	%		37.5	%	3.0	pts

Total North American Hotels (as of September 30, 2004)

11 Properties

5,090 Rooms

	Three months ended September 30,								Nine months ended September 30,
	2004			2003			Change		2004			2003			Change
Average Daily Rate	$	139.41		$	137.02		1.7	%	$	155.64		$	155.01		0.4	%
Average Occupancy		65.8	%		62.0	%	3.8	pts		69.0	%		66.4	%	2.6	pts
RevPAR	$	91.67		$	84.98		7.9	%	$	107.37		$	102.99		4.3	%
Operating Profit Margin		28.0	%		27.5	%	0.5	pts		34.5	%		35.5	%	(1.0	)pts

13

European Hotels (as of September 30, 2004)

3 Properties

841 Rooms

	Three months ended September 30,								Nine months ended September 30,
	2004			2003			Change		2004			2003			Change
Average Daily Rate	$	256.27		$	231.39		10.8	%	$	231.08		$	217.96		6.0	%
Average Occupancy		87.2	%		85.8	%	1.4	pts		81.1	%		76.9	%	4.2	pts
RevPAR	$	223.59		$	198.50		12.6	%	$	187.42		$	167.59		11.8	%
Operating Profit Margin		53.2	%		54.3	%	(1.1	)pts		48.9	%		50.5	%	(1.6	)pts

Total Hotels (as of September 30, 2004)

14 Properties

5,931 Rooms

	Three months ended September 30,								Nine months ended September 30,
	2004			2003			Change		2004			2003			Change
Average Daily Rate	$	160.79		$	154.87		3.8	%	$	168.11		$	165.22		1.7	%
Average Occupancy		68.9	%		65.5	%	3.4	pts		70.7	%		67.9	%	2.8	pts
RevPAR	$	110.72		$	101.37		9.2	%	$	118.91		$	112.25		5.9	%
Operating Profit Margin		34.0	%		33.7	%	0.3	pts		37.3	%		38.1	%	(0.8	)pts

Our portfolio breakdown between North America and European hotels constitutes the differentiation between wholly owned assets in the North American segment, and joint ventures and two leaseholds in the European segment.

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