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

Exhibit 99.2

Strategic Hotels & Resorts

Supplemental Financial Information

March 31, 2006

Strategic Hotels & Resorts

Supplemental Financial Information

March 31, 2006

TABLE OF CONTENTS

	PAGE
CORPORATE INFORMATION
The Company	3
Board of Directors	4
Officers	5
Equity Research Coverage	6
FINANCIAL HIGHLIGHTS
Supplemental Financial Data	7
Consolidated Statements of Operations	8
Consolidated Balance Sheets	9
Discontinued Operations	10
Investment in the Hotel del Coronado	11
Investment in the InterContinental Prague	12
Non-GAAP Financial Measures	13
Reconciliation of Net (Loss) Income Available to Common Shareholders to EBITDA, Adjusted EBITDA and Comparable EBITDA	14
Reconciliation of Net (Loss) Income Available to Common Shareholders to Funds From Operations (FFO), FFO - Fully Converted and Comparable FFO	15
Debt Summary	16
PORTFOLIO DATA
Portfolio at March 31, 2006	17
Seasonality by Geographic Region	18
Operating Statistics by Geographic Region	19-20
Selected Financial and Operating Information by Property	21-25
Reconciliation of Property EBITDA to EBITDA	26

2

Supplemental Financial Information

March 31, 2006

CORPORATE INFORMATION

The Company

Strategic Hotels & Resorts Inc., formerly known as Strategic Hotel Capital, Inc., is an industry-leading owner and asset manager of high-end hotels and resorts. We own a quality portfolio of upper upscale and luxury hotels and resorts in desirable North American and European locations. Our portfolio is made up of 18 properties totaling 8,463 rooms. We own 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.

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 will provide attractive returns for our shareholders.

Strategic Hotels & Resorts 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 Employees:

42

Corporate Headquarters:

77 West Wacker Drive, Suite 4600

Chicago, IL 60601

(312) 658-5000

Company Contact:	At Financial Relations Board:
James Mead	Leslie Loyet
Chief Financial Officer	Financial Relations Board
(312) 658-5000	(312) 640-6672

3

Supplemental Financial Information

March 31, 2006

Board of Directors

John C. Deterding

Chairman of the Board and Chairman of the Corporate Governance and Nominating Committee

Laurence S. Geller

Director, President and Chief Executive Officer

Robert P. Bowen

Director and Chairman of the Audit Committee

Michael W. Brennan

Director and Chairman of the Compensation Committee

Edward C. Coppola

Director

Richard L. Fisher

Director

David M.C. Michels

Director

Wiliam A. Prezant

Director

4

Supplemental Financial Information

March 31, 2006

Officers

Laurence S. Geller

President and Chief Executive Officer

James E. Mead

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

Richard J. Moreau

Executive Vice President — Asset Management

Jayson C. Cyr

Senior Vice President - Administration

Robert T. McAllister

Senior Vice President — Tax

Stephen K. Miller

Senior Vice President - Acquisitions and Development

Patricia A. Needham

Senior Vice President

John Kenneth Tyler Barrett

Vice President — Asset Management

David R. Hogin

Vice President — Asset Management

Monte J. Huber

Vice President, Controller, and Treasurer (Principal Accounting Officer)

Paula C. Maggio

Vice President, Secretary and General Counsel

Janice J. Peterson

Vice President — Human Capital

Timothy J. Taylor

Vice President — Capital Projects

Paul T. White

Vice President — Asset Management

5

Supplemental Financial Information

March 31, 2006

Equity Research Coverage

Firm	Analyst	Telephone
Banc of America Securities, LLC	J. Cogan	(415) 627-2501
Deutsche Bank North America	Marc Falcone	(212) 250-7417
Goldman, Sachs & Co.	Steven Kent	(212) 902-6752
Green Street Advisors, Inc.	John Arabia	(949) 640-8780
Raymond James & Associates	William Crow	(727) 567-2594
Wachovia Securities	Jeffrey Donnelly	(617) 603-4262
JMP Securities	Will Marks	(415) 835-8944

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

6

Supplemental Financial Information

March 31, 2006

FINANCIAL HIGHLIGHTS

Supplemental Financial Data

(in thousands, except per share information)

	March 31, 2006
	Pro Rata Share			Consolidated
Capitalization
Common shares outstanding		59,133			59,133
Operating partnership units outstanding		1,125			1,125
Restricted stock units outstanding		722			722
Combined shares and units outstanding		60,980			60,980
Common stock price at end of period	$	23.28		$	23.28
Common equity capitalization	$	1,419,614		$	1,419,614
Preferred equity capitalization		215,000			215,000
Consolidated debt		655,710			655,710
Pro rata share of unconsolidated debt		307,823			—
Pro rata share of consolidated debt allocated to InterContinental Hotels Group (IHG)		(30,300	)		—
Cash and cash equivalents		(77,801	)		(77,801	)
Total enterprise value	$	2,490,046		$	2,212,523
Dividends Per Share
Common dividends declared (holders of record on March 31, 2006)				$	0.23
Preferred Series A dividends declared (holders of record on March 15, 2006)				$	0.53125
Preferred Series B dividends declared (holders of record on March 15, 2006)				$	0.34375

7

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended March 31,
	2006			2005
Revenues:
Rooms	$	76,799		$	55,984
Food and beverage		46,301			34,011
Other hotel operating revenue		14,121			11,983
		137,221			101,978
Lease revenue		3,801			4,071
Total revenues		141,022			106,049
Operating Costs and Expenses:
Rooms		17,993			12,026
Food and beverage		32,486			23,946
Other departmental expenses		37,320			27,582
Management fees		4,003			4,255
Other hotel expenses		18,819			5,683
Lease expense		3,224			3,573
Depreciation and amortization		14,513			9,677
Corporate expenses		5,673			4,757
Total operating costs and expenses		134,031			91,499
Operating income		6,991			14,550
Interest expense		(7,850	)		(7,054	)
Interest income		1,212			284
Equity in (losses) earnings of joint ventures		(1,619	)		402
Other income, net		1,613			1,187
Income before income taxes, minority interests and discontinued operations		347			9,369
Income tax benefit (expense)		2,236			(940	)
Minority interest expense in SHR’s operating partnership		(116	)		(1,996	)
Minority interest expense in consolidated hotel joint ventures		(196	)		—
Income from continuing operations		2,271			6,433
Income from discontinued operations		12			666
Net income		2,283			7,099
Preferred shareholder dividends		(3,706	)		(349	)
Net (loss) income available to common shareholders	$	(1,423	)	$	6,750
Basic (Loss) Income Per Share:
(Loss) income from continuing operations available to common shareholders per share	$	(0.03	)	$	0.20
Income from discontinued operations per share		0.00			0.02
Net (loss) income available to common shareholders per share	$	(0.03	)	$	0.22
Weighted-average common shares outstanding		46,763			30,247
Diluted (Loss) Income Per Share:
(Loss) income from continuing operations available to common shareholders per share	$	(0.03	)	$	0.20
Income from discontinued operations per share		0.00			0.02
Net (loss) income available to common shareholders per share	$	(0.03	)	$	0.22
Weighted-average common shares outstanding		46,763			30,357

8

Supplemental Financial Information

March 31, 2006 and December 31, 2005

Consolidated Balance Sheets

(in thousands, except share data)

	March 31, 2006			December 31, 2005
Assets
Property and equipment	$	1,491,774		$	1,300,250
Less accumulated depreciation		(231,452	)		(217,695	)
Net property and equipment		1,260,322			1,082,555
Goodwill		106,667			66,656
Intangible assets (net of accumulated amortization of $1,529 and $1,340, respectively)		1,940			2,129
Investment in hotel joint venture		86,491			15,533
Cash and cash equivalents		77,801			65,017
Restricted cash and cash equivalents		23,741			32,115
Accounts receivable (net of allowance for doubtful accounts of $464 and $427, respectively)		46,864			31,286
Deferred financing costs (net of accumulated amortization of $1,377 and $969, respectively)		7,154			7,544
Other assets		89,471			119,687
Insurance recoveries receivable		31,398			25,588
Total assets	$	1,731,849		$	1,448,110
Liabilities and Shareholders’ Equity
Liabilities:
Mortgages and other debt payable	$	625,710		$	633,380
Bank credit facility		30,000			26,000
Accounts payable and accrued expenses		120,664			90,486
Distributions payable		14,654			11,531
Deferred gain on sale of hotels		101,605			99,970
Total liabilities		892,633			861,367
Minority interests in SHR’s operating partnership		11,504			76,030
Minority interests in consolidated hotel joint ventures		11,085			11,616
Shareholders’ equity:
8.5% Series A Cumulative Redeemable Preferred Stock ($0.01 par value; 4,000,000 shares issued and outstanding; liquidation preference $25.00 per share)		97,553			97,553
8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value; 4,600,000 shares issued and outstanding; liquidation preference $25.00 per share)		110,878			—
Common shares ($0.01 par value; 150,000,000 common shares authorized; 59,133,344 and 43,878,273 common shares issued and outstanding, respectively)		591			439
Additional paid-in capital		908,839			688,250
Deferred compensation		(5,483	)		(1,916	)
Accumulated deficit		(239,330	)		(241,613	)
Accumulated distributions		(70,607	)		(53,142	)
Accumulated other comprehensive income		14,186			9,526
Total shareholders’ equity		816,627			499,097
Total liabilities and shareholders’ equity	$	1,731,849		$	1,448,110

9

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

Discontinued Operations

The results of operations of hotels sold have been classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. On October 7, 2005, we sold the Marriott Schaumburg located in Chicago, Illinois for net sales proceeds aggregating $21,482,000. On October 27, 2005, we sold the Embassy Suites Lake Buena Vista located in Orlando, Florida for net sales proceeds aggregating $54,820,000. The following is a summary of income from discontinued operations for the three months ended March 31, 2006 and 2005 (in thousands):

	Three Months Ended March 31,
	2006			2005
Hotel operating revenues	$	—		$	7,487
Operating costs and expenses		—			5,277
Depreciation and amortization		—			910
Total operating costs and expenses		—			6,187
Operating income		—			1,300
Interest expense		—			(428	)
Interest income		—			8
Other expenses, net		—			(7	)
Gain on sale of assets		13			—
Minority interests		(1	)		(207	)
Income from discontinued operations	$	12		$	666

10

Supplemental Financial Information

March 31, 2006

Investment in the Hotel del Coronado

(in thousands)

We own a 45% interest in joint ventures that own the Hotel del Coronado and the adjacent land parcel under development. We account for this investment using the equity method of accounting. Our equity in losses of the joint ventures amounted to $1.4 million for the period from January 9, 2006 to March 31, 2006 and at March 31, 2006 our investment in the ventures totaled $70.2 million. The following are summary statements of operations, balance sheets and debt of the joint ventures:

	Three Months Ended March 31, 2006
Total revenues	$	27,202
Expenses:
Property and other costs		17,995
Depreciation and amortization		2,885
Interest expense		9,781
Other expense, net		267
Total expenses		30,928
Net loss	$	(3,726	)
	March 31, 2006
Property and equipment, net	$	327,776
Intangible assets, net		49,487
Goodwill		23,401
Deferred financing costs, net		7,894
Cash and other assets		26,949
Total assets	$	435,507
Mortgage and other debt	$	610,000
Construction loan		9,026
Other liabilities		22,648
Total liabilities		641,674
Total partners’ deficit		(206,167	)
Total liabilities and partners’ deficit	$	435,507

Debt	Interest Rate		Spread over LIBOR	Loan Amount		Maturity Date
Mortgage and Mezzanine	6.83	%	208 bp	$	610,000	January 2008	(a)
Revolving Credit Facility	7.25	%	250 bp		—	January 2008	(a)
Construction Loan	7.13	%	250 bp		9,026	February 2008	(b)
				$	619,026

(a) The joint venture has an option to extend the maturity date to January 2011.

(b) The joint venture has an option to extend the maturity date to February 2009.

Cap	LIBOR Cap Rate	Notional Amount		Maturity
CMBS and Mezzanine Loan Cap	5.0% to January 2008	$	630,000	January 2009
	5.5% January 2008 to maturity

11

Supplemental Financial Information

March 31, 2006

Investment in the InterContinental Prague

(in thousands)

We own a 35% interest in a joint venture that owns the InterContinental Prague and account for this investment using the equity method of accounting. Our equity in (losses) earnings of the joint venture amounted to $(0.1) million and $0.4 million for the three months ended March 31, 2006 and 2005, respectively. At March 31, 2006 and December 31, 2005 our investment in the hotel totaled $13.7 million and $12.9 million, respectively. The following are summary statements of operations, balance sheets and debt of the joint venture:

	Three Months Ended March 31,
	2006			2005
Total revenues	$	6,545		$	6,621
Expenses:
Property and other costs		4,569			4,575
Depreciation and amortization		1,518			1,607
Interest expense - affiliates		21			32
Interest expense - bank loan		992			1,023
Other income, net		(499	)		(1,587	)
Income tax expense		248			148
Total expenses		6,849			5,798
Net (loss) income	$	(304	)	$	823
	March 31, 2006			December 31, 2005
Property and equipment, net	$	93,263		$	90,438
Goodwill		31,787			30,334
Cash and other assets		22,537			21,907
Total assets	$	147,587		$	142,679
Bank debt	$	83,605		$	82,440
Notes payable to affiliates		1,542			1,542
Deferred tax liability		14,623			14,243
Other liabilities		7,387			6,680
Total liabilities		107,157			104,905
Minority interest		1,700			1,631
Total shareholders’ equity		38,730			36,143
Total liabilities and shareholders’ equity	$	147,587		$	142,679

Debt	Interest Rate		Spread over EURIBOR		Loan Amount		Maturity Date
Bank debt	4.0	%	150	bp	€	68,975 ($83,605)	July 2007	(a)

(a) The joint venture has extended the maturity date to July 15, 2007 and has an option to extend to July 15, 2008.

12

Supplemental Financial Information

March 31, 2006

Non-GAAP Financial Measures

In addition to REIT hotel income, six other non-GAAP financial measures are presented for the Company that we believe are useful to investors as key measures of our operating performance: Funds from Operations (FFO); FFO - Fully Converted; and Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); and Adjusted EBITDA; and Comparable EBITDA. A reconciliation of these measures to net (loss) income available to common shareholders, 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 (losses) or gains 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 FFO - Fully Converted, which is FFO plus minority interest expense on convertible minority interests. We also present Comparable FFO, which is FFO- Fully Converted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses and other non-recurring charges. We believe that the presentation of FFO, FFO- Fully Converted and Comparable FFO provides useful information to 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.

EBITDA represents net (loss) income available to common shareholders 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 convertible minority interests of our operating partnership into our common stock and includes preferred dividends. We believe this treatment of minority interest provides more useful information for management and our investors and appropriately considers our current capital structure. We also present Adjusted EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks. We also present Comparable EBITDA, which eliminates the effect of gains or losses on sales of assets, early extinguishment of debt, impairment losses and other non-recurring charges. We believe EBITDA, Adjusted 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, Adjusted EBITDA and Comparable EBITDA as measures in determining the value of acquisitions and dispositions.

We caution investors that amounts presented in accordance with our definitions of FFO, FFO - Fully Converted, Comparable FFO, EBITDA, Adjusted 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, Fully Converted FFO, Comparable FFO, EBITDA, Adjusted EBITDA and Comparable EBITDA should not be considered as an alternative measure of our net income or operating performance. FFO, FFO - Fully Converted, Comparable FFO, EBITDA, Adjusted 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 Converted, Comparable FFO, EBITDA, Adjusted 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 (loss) income available to common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. Below, we have provided a quantitative reconciliation of FFO, FFO - Fully Converted, Comparable FFO, EBITDA, Adjusted EBITDA and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net (loss) income available to common shareholders, and provide an explanatory description by footnote of the items excluded from FFO, FFO - Fully Converted, EBITDA and Adjusted EBITDA. Prior year amounts have been adjusted to conform to the current year presentation of a fully converted basis.

13

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

Reconciliation of Net (Loss) Income Available to Common Shareholders to EBITDA, Adjusted EBITDA

and Comparable EBITDA

(in thousands)

	Three Months Ended March 31,
	2006			2005
Net (loss) income available to common shareholders	$	(1,423	)	$	6,750
Depreciation and amortization - continuing operations		14,513			9,677
Depreciation and amortization - discontinued operations		—			910
Interest expense - continuing operations		7,850			7,054
Interest expense - discontinued operations		—			428
Income taxes - continuing operations		(2,236	)		940
Minority interests		117			2,203
Adjustments from consolidated joint ventures		(1,081	)		—
Adjustments from unconsolidated affiliates		6,558			937
Preferred shareholder dividends		3,706			349
EBITDA (a)		28,004			29,248
Realized portion of deferred gain on sale leasebacks		(1,052	)		(1,142	)
Adjusted EBITDA (a)	$	26,952		$	28,106
Gain on sale of assets - discontinued operations		(13	)		—
Gain on sale of assets - continuing operations		(30	)		—
Termination costs		10,384			—
Comparable EBITDA	$	37,293		$	28,106

(a) EBITDA and Adjusted EBITDA have not been adjusted for the following amounts included in net (loss) income available to common shareholders because these (losses) gains have either occurred during the prior two years or are reasonably likely to occur within two years (in thousands):

• Gain on sale of assets from discontinued operations amounted to $13 for the three months ended March 31, 2006.

• Gain on sale of assets from continuing operations amounted to $30 for the three months ended March 31, 2006.

• Termination costs related to the termination of the management agreement at the Marriott Rancho Las Palmas amounted to $10,384 for the three months ended March 31, 2006.

14

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

Reconciliation of Net (Loss) Income Available to Common Shareholders to

Funds From Operations (FFO), FFO - Fully Converted and Comparable FFO

(in thousands)

	Three Months Ended March 31,
	2006			2005
Net (loss) income available to common shareholders	$	(1,423	)	$	6,750
Depreciation and amortization - continuing operations		14,513			9,677
Depreciation and amortization - discontinued operations		—			910
Gain on sale of assets - continuing operations		(30	)		—
Gain on sale of assets - discontinued operations		(13	)		—
Realized portion of deferred gain on sale leasebacks		(1,052	)		(1,142	)
Deferred tax expense on realized portion of deferred gain on sale leasebacks		316			344
Minority interests adjustments		(795	)		(2,629	)
Adjustments from consolidated joint ventures		(582	)		—
Adjustments from unconsolidated affiliates		1,830			510
FFO (a)		12,764			14,420
Convertible minority interests		912			4,832
FFO - Fully Converted (a)	$	13,676		$	19,252
Termination costs		10,384			—
Deferred tax benefit on termination costs		(4,045	)		—
Comparable FFO	$	20,015		$	19,252
Comparable FFO per weighted-average fully converted shares and units outstanding	$	0.34		$	0.48
Weighted-average fully converted shares and units outstanding		58,149			39,967

(a) FFO and FFO - Fully Converted have not been adjusted for the following amounts included in net (loss) income available to common shareholders because these (losses) gains have either occurred during the prior two years or are reasonably likely to occur within two years (in thousands):

• Termination costs related to the termination of the management agreement at the Marriott Rancho Las Palmas amounted to $10,384 for the three months ended March 31, 2006.

• Deferred tax benefit on termination costs amounted to $4,045 for the three months ended March 31, 2006.

15

Supplemental Financial Information

March 31, 2006

Debt Summary

(dollars in thousands)

Debt	Encumbered Hotels	Interest Rate		Spread over LIBOR	Loan Amount		Maturity Date
Bank Credit Facility	7	5.89	%(a)	150 bp	$	30,000	Nov. 2009
CMBS Floating Rate	8	5.60	%	85 bp		220,000	Nov. 2007
CMBS Fixed Rate	3	5.43	%	Fixed		203,710	July 2011
InterContinental Floating Rate	2	6.50	%	175 bp		202,000	April 2007
					$	655,710

(a) Represents the weighted average interest rate for the period from January 1, 2006 to March 31, 2006

Caps	LIBOR Cap Rate		Notional Amount		Maturity
CMBS Floating Rate Cap	8.50	%	$	350,000	Nov. 2007
Swaps	Fixed Pay Rate Against LIBOR		Notional Amount		Maturity
Swap A	3.62	%	$	96,000	June 2007
Swap B	4.59	%	$	75,000	April 2012
Swap C	4.42	%	$	75,000	April 2010
Swap D	4.12	%	$	50,000	June 2012

At March 31, 2006, future scheduled debt principal payments (including extension options) are as follows:

Years ended December 31,	Amounts (in thousands)
2006 (remainder)	$	1,933
2007		3,067
2008		3,209
2009		3,421
2010		455,614
Thereafter		188,466
Total	$	655,710

16

Supplemental Financial Information

March 31, 2006

PORTFOLIO DATA

Portfolio at March 31, 2006

Hotel	Location	Number of Rooms	% of Total Rooms		% of 2006 Property EBITDA
United States:
InterContinental Chicago (a)	Chicago, IL	792	9	%	4	%
Hyatt Regency Phoenix	Phoenix, AZ	696	8	%	12	%
Fairmont Chicago (b)	Chicago, IL	691	8	%	2	%
Hotel del Coronado (c)	Coronado, CA	679	8	%	10	%
InterContinental Miami (a)	Miami, FL	641	8	%	17	%
Hilton Burbank Airport and Convention Center	Burbank, CA	488	6	%	6	%
Marriott Rancho Las Palmas Resort (d)	Rancho Mirage, CA	444	5	%	6	%
Hyatt Regency La Jolla at Aventine	La Jolla, CA	419	5	%	7	%
Marriott Lincolnshire Resort	Lincolnshire, IL	389	5	%	2	%
Loews Santa Monica Beach Hotel	Santa Monica, CA	342	4	%	8	%
Ritz-Carlton Half Moon Bay	Half Moon Bay, CA	261	3	%	3	%
Four Seasons Washington, D.C. (e)	Washington, D.C.	211	2	%	3	%
Total United States		6,053	71	%	80	%
Mexican:
Four Seasons Mexico City	Mexico City, Mexico	240	3	%	3	%
Four Seasons Punta Mita Resort	Punta Mita, Mexico	145	2	%	16	%
Total Mexican		385	5	%	19	%
European:
InterContinental Prague (f)	Prague, Czech Republic	372	5	%	1	%
Marriott Hamburg (g)	Hamburg, Germany	277	3	%	N/A
Paris Marriott Champs Elysees (g)	Paris, France	192	2	%	N/A
Total European		841	10	%	1	%
Assets Under Redevelopment:
Hyatt Regency New Orleans (h)	New Orleans, LA	1,184	14	%	N/A
		8,463	100	%	100	%

(a) On April 1, 2005, we purchased an 85% controlling interest in the joint ventures that own the InterContinental Chicago and Miami hotels. We consolidate these hotels for reporting purposes.

(b) On September 1, 2005, we purchased the Fairmont Chicago.

(c) On January 9, 2006 we purchased a 45% interest in the joint venture that owns the Hotel del Coronado and account for our investment under the equity method of accounting. Our equity in earnings of the hotel joint venture is included in equity in (losses) earnings of joint ventures in our consolidated statements of operations. The percentage of Property EBITDA above has been calculated based on our 45% ownership.

(d) During the first quarter of 2006, we reached an agreement with Marriott Hotel Services, Inc. (MHS), the manager of the Marriott Rancho Las Palmas Resort, to terminate the hotel management contract with MHS on or before December 29, 2006. We recorded termination fees and estimated severance costs of $10.4 million for the three months ended March 31, 2006. We have excluded these costs from the percentage of Property EBITDA calculation above.

(e) On March 1, 2006, we purchased the Four Seasons Washington, D.C. We have included the results of this hotel in the percentage of Property EBITDA calculation above only for our period of ownership.

(f) We have a 35% interest in the joint venture that owns the InterContinental Prague and account for our investment under the equity method of accounting. Our equity in earnings of the hotel joint venture is included in equity in (losses) earnings of joint ventures in our consolidated statements of operations. The percentage of Property EBITDA above has been calculated based on our 35% ownership.

(g) As we only have leasehold interests in these properties, we have not included them in the percentage of Property EBITDA calculation above.

(h) In August 2005, a hurricane caused substantial damage to the Hyatt Regency New Orleans property. The hurricane damage also caused significant interruption to the business and the hotel has ceased significant operations. The property is currently under redevelopment. For purposes of the analysis above, the number of rooms represents fully operational rooms prior to the hurricane.

17

Supplemental Financial Information

Four Quarters Ended March 31, 2006

Seasonality by Geographic Region

Same store revenues have been adjusted to show hotel performance on a comparable quarter-over-quarter basis. Adjustments include (i) exclusion of Hyatt Regency New Orleans due to a hurricane that ceased significant operations in August 2005; (ii) exclusion of Marriott Schaumburg and Embassy Suites Lake Buena Vista Resort as these properties were sold in the fourth quarter of 2005 and their results of operations were reclassified to discontinued operations; and (iii) presentation of the hotels without regard to either ownership structure or leaseholds. Acquisition properties and the related dates of purchase are as follows: InterContinental Chicago and InterContinental Miami (April 1, 2005), Fairmont Chicago (September 1, 2005), Hotel Del Coronado (January 9, 2006) and Four Seasons Washington, D.C. (March 1, 2006).

United States Hotels (as of March 31, 2006)

Acquisition property revenues - 5 Properties and 3,014 Rooms

Same store property revenues - 7 Properties and 3,039 Rooms

	Three Months Ended
	June 30, 2005			September 30, 2005			December 31, 2005			March 31, 2006			Total
Acquisition property revenues	$	28,664		$	31,964		$	44,027		$	72,388		$	177,043
Same store property revenues		67,093			63,468			71,883			71,768			274,212
Total revenues	$	95,757		$	95,432		$	115,910		$	144,156		$	451,255
Same store seasonality %		24.5	%		23.1	%		26.2	%		26.2	%		100.0	%
Mexican Hotels (as of March 31, 2006)
Same store property revenues - 2 Properties and 385 Rooms
	Three Months Ended
	June 30, 2005			September 30, 2005			December 31, 2005			March 31, 2006			Total
Same store property revenues	$	15,990		$	12,646		$	15,891		$	20,119		$	64,646
Same store seasonality %		24.7	%		19.6	%		24.6	%		31.1	%		100.0	%
Total North American Hotels (as of March 31, 2006)
Acquisition property revenues - 5 Properties and 3,014 Rooms
Same store property revenues - 9 Properties and 3,424 Rooms
	Three Months Ended
	June 30, 2005			September 30, 2005			December 31, 2005			March 31, 2006			Total
Acquisition property revenue	$	28,664		$	31,964		$	44,027		$	72,388		$	177,043
Same store property revenue		76,114			87,774			84,322			91,887			338,858
Total revenues	$	104,778		$	119,738		$	128,349		$	164,275		$	517,140
Same store seasonality %		22.5	%		25.9	%		24.9	%		27.0	%		100.0	%
European Hotels (as of March 31, 2006)
Same store property revenues - 3 Properties and 841 Rooms
	Three Months Ended
	June 30, 2005			September 30, 2005			December 31, 2005			March 31, 2006			Total
Same store property revenues	$	23,179		$	23,582		$	18,923		$	17,303		$	82,987
Same store seasonality %		27.9	%		28.4	%		22.8	%		20.9	%		100.0	%

18

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

Operating Statistics by Geographic Region

Operating results have been adjusted to show hotel performance on a comparable period basis. Adjustments include (i) exclusion of InterContinental Chicago, InterContinental Miami, Fairmont Chicago, Hotel del Coronado and Four Seasons Washington, D.C.’s partial year results; (ii) exclusion of Hyatt Regency New Orleans due to a hurricane that ceased significant operations in August 2005; (iii) exclusion of Marriott Schaumburg and Embassy Suites Lake Buena Vista Resort as these properties were sold in the fourth quarter of 2005 and their results of operations were reclassified to discontinued operations; and (iv) presentation of the European hotels without regard to either ownership structure or leaseholds.

United States Hotels (as of March 31, 2006)

7 Properties

3,039 Rooms

	Three Months Ended March 31,
	2006			2005			Change
Average Daily Rate	$	184.63		$	172.82		6.8	%
Average Occupancy		74.5	%		74.5	%	—	pts
RevPAR	$	137.54		$	128.80		6.8	%
Total RevPAR	$	267.28		$	250.33		6.8	%
Property EBITDA Margin (excludes termination costs - see note (d) on page 17)		26.3	%		24.6	%	1.7	pts
Mexican Hotels (as of March 31, 2006)
2 Properties
385 Rooms
	Three Months Ended March 31,
	2006			2005			Change
Average Daily Rate	$	503.56		$	442.55		13.8	%
Average Occupancy		74.3	%		72.3	%	2.0	pts
RevPAR	$	374.34		$	319.75		17.1	%
Total RevPAR	$	581.90		$	499.56		16.5	%
Property EBITDA Margin		39.0	%		37.5	%	1.5	pts
Total North American Hotels (as of March 31, 2006)
9 Properties
3,424 Rooms
	Three Months Ended March 31,
	2006			2005			Change
Average Daily Rate	$	220.95		$	202.46		9.1	%
Average Occupancy		74.5	%		74.3	%	0.2	pts
RevPAR	$	164.56		$	150.36		9.4	%
Total RevPAR	$	303.17		$	278.48		8.9	%
Property EBITDA Margin (excludes termination costs - see note (d) on page 17)		29.1	%		27.2	%	1.9	pts

19

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

European Hotels (as of March 31, 2006)

3 Properties

841 Rooms

	Three Months Ended March 31,
	2006			2005			Change
Average Daily Rate	$	197.72		$	215.27		(8.2	)%
Average Occupancy		76.5	%		69.8	%	6.7	pts
RevPAR	$	151.18		$	150.21		0.6	%
Total RevPAR	$	228.59		$	220.71		3.6	%
Property EBITDA Margin		29.7	%		30.7	%	(1.0	)pts

20

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

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 months ended March 31, 2006 and 2005. Property EBITDA reflects property net operating income plus depreciation and amortization.

	Three Months Ended March 31,
	2006			2005
INTERCONTINENTAL CHICAGO
Selected Financial Information (This table includes financial information only for our period of ownership):
Total revenues	$	11,906			N/A
Property EBITDA	$	1,743			N/A
Selected Operating Information (This table includes statistical information only for our period of ownership. For the three months ended March 31, 2005, average occupancy was 52.7%, ADR was $145.78, RevPAR was $76.80 and Total RevPAR was $124.63):
Rooms		792			N/A
Average occupancy		62.3	%		N/A
ADR	$	168.38			N/A
RevPAR	$	104.83			N/A
Total RevPAR	$	167.03			N/A
HYATT REGENCY PHOENIX
Selected Financial Information:
Total revenues	$	12,158		$	12,824
Property EBITDA	$	4,775		$	5,106
Selected Operating Information:
Rooms		696			696
Average occupancy		81.8	%		81.6	%
ADR	$	151.33		$	155.29
RevPAR	$	123.85		$	126.68
Total RevPAR	$	194.09		$	204.73
FAIRMONT CHICAGO
Selected Financial Information (This table includes financial information only for our period of ownership):
Total revenues	$	12,189			N/A
Property EBITDA	$	842			N/A
Selected Operating Information (This table includes statistical information only for our period of ownership. For the three months ended March 31, 2005, average occupancy was 61.1%, ADR was $151.01, RevPAR was $92.20 and Total RevPAR was $173.15):
Rooms		691			N/A
Average occupancy		62.4	%		N/A
ADR	$	178.41			N/A
RevPAR	$	111.37			N/A
Total RevPAR	$	196.00			N/A
HOTEL DEL CORONADO
Selected Financial and Operating Information (No table has been provided since we did not own the property for the entire periods presented. For the three months ended March 31, 2006, average occupancy was 79.0%, ADR was $303.97, RevPAR was $240.12 and Total RevPAR was $484.72. For the three months ended March 31, 2005, average occupancy was 76.7%, ADR was $283.33, RevPAR was $217.46 and Total RevPAR was $434.90)

21

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

	Three Months Ended March 31,
	2006			2005
INTERCONTINENTAL MIAMI
Selected Financial Information (This table includes financial information only for our period of ownership):
Total revenues	$	16,626			N/A
Property EBITDA	$	6,814			N/A
Selected Operating Information (This table includes statistical information only for our period of ownership. For the three months ended March 31, 2005, average occupancy was 85.3%, ADR was $179.68, RevPAR was $153.27 and Total RevPAR was $256.71):
Rooms		641			N/A
Average occupancy		84.3	%		N/A
ADR	$	207.05			N/A
RevPAR	$	174.48			N/A
Total RevPAR	$	288.20			N/A
HILTON BURBANK AIRPORT AND CONVENTION CENTER
Selected Financial Information:
Total revenues	$	7,993		$	6,920
Property EBITDA	$	2,729		$	2,230
Selected Operating Information:
Rooms		488			488
Average occupancy		79.1	%		75.1	%
ADR	$	138.15		$	121.02
RevPAR	$	109.31		$	90.83
Total RevPAR	$	181.99		$	157.56
MARRIOTT RANCHO LAS PALMAS RESORT
Selected Financial Information:
Total revenues	$	10,249		$	10,800
Property EBITDA (excludes termination costs - see note (d) on page 17)	$	2,346		$	2,479
Selected Operating Information:
Rooms		444			444
Average occupancy		69.0	%		75.4	%
ADR	$	197.47		$	188.02
RevPAR	$	136.21		$	141.70
Total RevPAR	$	274.80		$	289.58
HYATT REGENCY LA JOLLA AT AVENTINE
Selected Financial Information:
Total revenues	$	10,873		$	9,230
Property EBITDA	$	3,149		$	2,101
Selected Operating Information:
Rooms		419			419
Average occupancy		78.4	%		76.7	%
ADR	$	185.20		$	162.32
RevPAR	$	145.22		$	124.47
Total RevPAR	$	288.33		$	244.76

22

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

	Three Months Ended March 31,
	2006			2005
MARRIOTT LINCOLNSHIRE RESORT
Selected Financial Information:
Total revenues	$	7,969		$	7,441
Property EBITDA	$	990		$	795
Selected Operating Information:
Rooms		389			390
Average occupancy		52.7	%		57.1	%
ADR	$	130.90		$	116.39
RevPAR	$	69.04		$	66.47
Total RevPAR	$	243.88		$	227.14
LOEWS SANTA MONICA BEACH HOTEL
Selected Financial Information:
Total revenues	$	11,133		$	10,374
Property EBITDA	$	3,473		$	3,321
Selected Operating Information:
Rooms		342			342
Average occupancy		85.0	%		86.7	%
ADR	$	268.61		$	251.47
RevPAR	$	228.22		$	217.90
Total RevPAR	$	361.70		$	337.04
RITZ-CARLTON HALF MOON BAY
Selected Financial Information :
Total revenues	$	11,393		$	9,648
Property EBITDA	$	1,413		$	489
Selected Operating Information:
Rooms		261			261
Average occupancy		65.3	%		58.4	%
ADR	$	295.83		$	277.65
RevPAR	$	193.15		$	162.04
Total RevPAR	$	485.01		$	410.73
FOUR SEASONS WASHINGTON, D.C.
Selected Financial and Operating Information (No table has been provided since we did not own the property for the entire periods presented. For the three months ended March 31, 2006, average occupancy was 65.0%, ADR was $462.14, RevPAR was $300.48 and Total RevPAR was $545.85. For the three months ended March 31, 2005, average occupancy was 23.2%, ADR was $565.58, RevPAR was $131.16 and Total RevPAR was $293.41)
HYATT REGENCY NEW ORLEANS
Selected Financial Information:
Total revenues		N/A		$	17,657
Property EBITDA		N/A		$	5,783
Selected Operating Information (For 2006, no statistics are provided as the hotel is under redevelopment):
Rooms					1,184
Average occupancy		N/A			64.1	%
ADR		N/A		$	153.09
RevPAR		N/A		$	98.11
Total RevPAR		N/A		$	165.70

23

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

	Three Months Ended March 31,
	2006			2005
FOUR SEASONS MEXICO CITY
Selected Financial Information:
Total revenues	$	6,069		$	5,422
Property EBITDA	$	1,467		$	1,208
Selected Operating Information:
Rooms		240			240
Average occupancy		66.2	%		63.9	%
ADR	$	242.16		$	225.10
RevPAR	$	160.39		$	143.93
Total RevPAR	$	280.97		$	251.02
FOUR SEASONS PUNTA MITA RESORT
Selected Financial Information:
Total revenues	$	14,050		$	11,663
Property EBITDA	$	6,383		$	5,199
Selected Operating Information:
Rooms		145			140
Average occupancy		87.8	%		86.5	%
ADR	$	831.67		$	718.11
RevPAR	$	730.52		$	621.16
Total RevPAR	$	1,082.88		$	925.63

24

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

	Three Months Ended March 31,
	2006			2005
INTERCONTINENTAL PRAGUE
Selected Financial Information (Amounts below are 100% of operations, of which SHCI owns 35%):
Total revenues	$	6,293		$	6,650
Property EBITDA	$	1,794		$	2,192
Selected Operating Information:
Rooms		372			372
Average Occupancy		73.2	%		68.7	%
ADR	$	147.98		$	173.55
RevPAR	$	108.39		$	119.29
Total RevPAR	$	187.96		$	198.63
MARRIOTT HAMBURG
Selected Financial Information:
Total revenues	$	4,681		$	3,750
Property EBITDA	$	1,236		$	1,279
Selected Operating Information:
Rooms		277			277
Average occupancy		81.0	%		67.3	%
ADR	$	148.00		$	150.85
RevPAR	$	119.91		$	101.47
Total RevPAR	$	187.77		$	150.42
PARIS MARRIOTT CHAMPS ELYSEES
Selected Financial Information:
Total revenues	$	6,329		$	6,306
Property EBITDA	$	2,104		$	1,661
Selected Operating Information:
Rooms		192			192
Average occupancy		76.1	%		75.4	%
ADR	$	366.82		$	371.88
RevPAR	$	279.17		$	280.44
Total RevPAR	$	366.26		$	364.93

25

Supplemental Financial Information

Three Months Ended March 31, 2006 and 2005

Reconciliation of Property EBITDA to EBITDA

(in thousands)

	Three Months Ended March 31,
	2006					2005
Hotel	Property EBITDA		EBITDA			Property EBITDA		EBITDA
Hyatt Regency New Orleans	$	—	$	(369	)	$	5,783	$	5,783
InterContinental Chicago (a)		1,743		1,743			—		—
Hyatt Regency Phoenix		4,775		4,775			5,106		5,106
Fairmont Chicago (b)		842		842			—		—
Hotel del Coronado (c)		9,793		—			—		—
InterContinental Miami (a)		6,814		6,814			—		—
Hilton Burbank Airport and Convention Center		2,729		2,729			2,230		2,230
Marriott Rancho Las Palmas Resort		2,346		(8,038	)		2,479		2,479
Hyatt Regency La Jolla at Aventine		3,149		3,149			2,101		2,101
Marriott Lincolnshire Resort		990		990			795		795
Loews Santa Monica Beach Hotel		3,473		3,473			3,321		3,321
Ritz-Carlton Half Moon Bay		1,413		1,413			489		489
Four Seasons Washington, D.C.		1,313		1,313			—		—
Four Seasons Mexico City		1,467		1,467			1,208		1,208
Four Seasons Punta Mita Resort		6,383		6,383			5,199		5,199
InterContinental Prague (d)		1,794		—			2,192		—
Marriott Hamburg (e)		1,236		26			1,279		37
Paris Marriott Champs Elysees (e)		2,104		467			1,661		237
	$	52,364	$	27,177		$	33,843	$	28,985
Adjustments:
Corporate expenses			$	(5,673	)			$	(4,757	)
Interest income				1,212					284
Equity in (losses) earnings of joint ventures				(1,619	)				402
Other income, net				1,613					1,187
Income from discontinued operations (excluding minority interest)				13					873
Depreciation and amortization - discontinued operations				—					910
Interest expense - discontinued operations				—					428
Minority interest expense in consolidated hotel joint ventures				(196	)				—
Adjustments from consolidated joint ventures				(1,081	)				—
Adjustments from unconsolidated affiliates				6,558					937
Other adjustments				—					(1	)
EBITDA			$	28,004				$	29,248

(a) On April 1, 2005, we purchased an 85% controlling interest in the joint ventures that own the InterContinental Chicago and Miami hotels. We consolidate these hotels for reporting purposes. We have included the results of this hotel in Property EBITDA above for our period of ownership.

(b) On September 1, 2005, we purchased the Fairmont Chicago. We have included the results of this hotel in Property EBITDA above for our period of ownership.

(c) On January 9, 2006 we closed the acquisition of a 45% joint venture ownership interest in SHC KSL Partners, LP, the existing owner of the Hotel del Coronado in San Diego, California. We account for our investment under the equity method of accounting. Our equity in earnings of the hotel joint venture is included in equity in (losses) earnings of joint ventures in our consolidated statements of operations.

(d) We have a 35% interest in the joint venture that owns the InterContinental Prague and account for our investment under the equity method of accounting. Our equity in earnings of the hotel joint venture is included in equity in (losses) earnings of joint ventures in our consolidated statements of operations.

(e) We have leasehold interests in these properties. 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 that is recorded by our sub-lessee.

26