Strategic Hotels & Resorts (BEE+C) 8-K/A Unaudited Condensed Consolidated Financial Statements Prepared

Exhibit 99.2

UNAUDITED PRO FORMA FINANCIAL INFORMATION

The following unaudited pro forma financial information is presented as a result of the acquisition of a 65% interest in the entity that owns the InterContinental Hotel in Prague, Czech Republic (the InterContinental Prague Hotel) and gives effect to the following transactions (a) the acquisition of an interest in two joint ventures which own the Chicago and Miami InterContinental hotels on April 1, 2005, (b) the acquisition of the Four Seasons Washington D.C. on March 1, 2006, (c) the acquisition of the Westin St. Francis San Francisco Hotel on June 1, 2006, (d) the acquisition of the Ritz-Carlton Laguna Niguel on July 7, 2006, (e) the acquisition of a 65% interest in the InterContinental Prague Hotel on August 3, 2006, (f) the disposition of the Marriott Rancho Las Palmas Resort on July 14, 2006, (g) the disposition of the Burbank Airport Hilton & Convention Center on September 7, 2006 (h) a July 2006 mortgage loan, (i) our March 2005; January and May 2006 preferred stock offerings, and (j) our January and May 2006 common stock offerings.

The historical financial information as of June 30, 2006 and for the six months then ended has been derived from our unaudited financial statements included in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2006 and the historical financial information for the year ended December 31, 2005 has been derived from our audited financial statements included in our Annual Report on Form 10-K/A for the year ended December 31, 2005.

The unaudited pro forma balance sheet data as of June 30, 2006 is presented as if the transactions described above had occurred on June 30, 2006. The unaudited pro forma statement of operations data for the six months ended June 30, 2006 and for the year ended December 31, 2005 are presented as if the transactions described above had occurred on January 1, 2005.

The unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what our results of operations would actually have been if the transactions had in fact occurred on the earlier date discussed above. It also does not project or forecast our consolidated results of operations for any future date or period.

1

Strategic Hotels & Resorts, Inc.

Unaudited Pro Forma Consolidated Balance Sheet

June 30, 2006

(in thousands)

	Strategic Hotels & Resorts, Inc. Historical Consolidated			Previously Filed Pro Forma Information (1)			Strategic Hotels & Resorts, Inc. Pro Forma			InterContinental Prague Historical			Pro Forma Adjustments			Strategic Hotels & Resorts, Inc. Pro Forma Consolidated
Assets
Property and equipment	$	1,849,541		$	213,371		$	2,062,912		$	187,818		$	(122,082	)(2a)	$	2,205,154
														76,506	(2b)
Less accumulated depreciation		(236,145	)		13,662			(222,483	)		(90,424	)		58,776	(2a)		(254,131	)
Net property and equipment		1,613,396			227,033			1,840,429			97,394			13,200			1,951,023
Goodwill		163,175			61,333			224,508			33,442			(21,737	)(2a)		295,165
														58,952	(2b)
Intangible assets		4,761			2,100			6,861									6,861
Assets held for sale		46,602			(46,602	)		—									—
Investment in joint ventures		89,247						89,247						(15,459	)(2c)		73,788
Cash and cash equivalents		153,915			15,788			169,703			11,864			75,852	(2d)		181,567
														(75,852	)(2d)
Restricted cash and cash equivalents		22,257						22,257			7,248						29,505
Accounts receivable, net		49,176			6,648			55,824			3,351						59,175
Deferred financing costs, net		7,666			841			8,507			52						8,559
Other assets		111,041			1,003			112,044			2,202						114,246
Insurance recoveries receivable		12,702						12,702									12,702
Total assets	$	2,273,938		$	268,144		$	2,542,082		$	155,553		$	34,956		$	2,732,591
Liabilities and Shareholders’ Equity
Liabilities:
Mortgages and other debt payable	$	699,413		$	187,044		$	886,457		$	87,397		$	—		$	973,854
Bank credit facility		—						—						75,852	(2d)		75,852
Liabilities of assets held for sale		18,508			(18,508	)		—									—
Accounts payable and accrued expenses		135,967			9,803			145,770			24,117			1,345	(2e)		171,232
Distributions payable		19,115						19,115									19,115
Deferred gain on sale of hotels		106,574						106,574									106,574
Total liabilities		979,577			178,339			1,157,916			111,514			77,197			1,346,627
Minority interests in SHR’s operating partnership		13,289			1,290			14,579									14,579
Minority interests in consolidated hotel joint ventures		10,494						10,494			1,798						12,292
Shareholders’ equity:
8.5% Series A Cumulative Redeemable Preferred Shares		97,553						97,553									97,553
8.25% Series B Cumulative Redeemable Preferred Shares		110,878						110,878									110,878
8.25% Series C Cumulative Redeemable Preferred Shares		138,472						138,472									138,472
Common shares		753						753			20			(20	)(2f)		753
Additional paid-in capital		1,220,689			(1,290	)		1,219,399			24,350			(24,350	)(2f)		1,219,399
Accumulated (deficit) earnings		(221,708	)		89,805			(131,903	)		751			(751	)(2f)		(131,903	)
Accumulated distributions		(93,996	)					(93,996	)								(93,996	)
Accumulated other comprehensive income		17,937						17,937			17,120			(17,120	)(2f)		17,937
Total shareholders’ equity		1,270,578			88,515			1,359,093			42,241			(42,241	)		1,359,093
Total liabilities and shareholders’ equity	$	2,273,938		$	268,144		$	2,542,082		$	155,553		$	34,956		$	2,732,591

2

Notes to Unaudited Pro Forma Consolidated Balance Sheet as of June 30, 2006

1. Previously Filed Pro Forma Information – The pro forma adjustments filed on our September 20, 2006 Form 8-K/A were made to account for the following transactions:

a) On July 14, 2006 we sold the Marriott Rancho Las Palmas Resort for $56.0 million.

b) On September 7, 2006 we sold the Burbank Airport Hilton & Convention Center for $125.0 million.

c) On July 7, 2006 we purchased the Ritz-Carlton Laguna Niguel hotel for $330.0 million plus assumed debt of $8.6 million. We used cash on hand, which included proceeds raised from common and preferred stock offerings and mortgage debt proceeds described below to acquire this property.

d) On July 6, 2006 we entered into a mortgage loan with Metropolitan Life Insurance Company. The principal amount of the loan is $220.0 million and the loan accrues interest at LIBOR plus 0.70%. The loan is secured by, among other things, the Westin St. Francis hotel. Proceeds from the loan were used to partially fund the acquisition of the Ritz-Carlton Laguna Niguel hotel.

2. InterContinental Prague Hotel Historical and Pro Forma Adjustments– On August 3, 2006 we purchased a 65% interest in the entity that owns the InterContinental Prague Hotel for $68.8 million plus assumed debt of $56.5 million. We used borrowings under our bank credit facility to acquire this property.

The total estimated consideration as shown in the table below is allocated to the assets and liabilities of the InterContinental Hotel as if the transaction had occurred on June 30, 2006.

	(in thousands)
Total purchase price:
Cash consideration	$	75,852
Preliminary allocation of purchase price:
Fair value of property and equipment		76,506
Goodwill		58,952
Historical value of cash and cash equivalents acquired		7,712
Historical value of restricted cash and cash equivalents acquired		4,711
Historical value of accounts receivable acquired		2,178
Historical value of other assets acquired		1,465
Historical value of minority interests in consolidated hotel joint ventures		(1,169	)
Mortgage debt assumed		(56,808	)
Deferred tax liability		(3,168	)
Historical value of accounts payable and accrued expenses assumed		(14,527	)
	$	75,852

The following pro forma adjustments were made to account for this acquisition and minority interest for all pro forma activity:

a) Reflects the elimination of 65% of the InterContinental Prague Hotel’s historical account balances.

b) Reflects the fair value of assets acquired.

c) Reflects the $15.5 million elimination of the investment in the joint venture.

d) Reflects the estimated $75.9 million of borrowings under the bank credit facility and cash paid to fund the transaction.

e) Reflects the additional $3.2 million of deferred tax liability related to the step up of the assets to fair value less $1.9 million of note payable and accrued interest purchased from the former shareholder.

f) Reflects the elimination of the InterContinental Prague Hotel’s historical account balances.

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Strategic Hotels & Resorts, Inc.

Unaudited Pro Forma Consolidated Statement of Operations

For the Six Months Ended June 30, 2006

(in thousands, except per share amounts)

	Strategic Hotels & Resorts, Inc. Historical Consolidated			Previously Filed Pro Forma Information (1)			Strategic Hotels & Resorts, Inc. Pro Forma			InterContinental Prague Historical			Pro Forma Adjustments			Strategic Hotels & Resorts, Inc. Pro Forma Consolidated
Revenues:
Rooms	$	159,419		$	38,091		$	197,510		$	10,815		$	—		$	208,325
Food and beverage		96,468			31,684			128,152			4,283						132,435
Other hotel operating revenue		27,391			8,781			36,172			2,449						38,621
		283,278			78,556			361,834			17,547			—			379,381
Lease revenue		7,769			—			7,769									7,769
Total revenues		291,047			78,556			369,603			17,547			—			387,150
Operating Costs and Expenses:
Rooms		37,970			12,302			50,272			1,825						52,097
Food and beverage		66,142			24,656			90,798			2,702						93,500
Other departmental expenses		72,353			11,364			83,717			2,924						86,641
Management fees		9,093			4,338			13,431			723			(360	)(2a)		13,794
Other hotel expenses		18,281			11,398			29,679			1,989						31,668
Lease expense		6,619						6,619									6,619
Depreciation and amortization		29,228			11,033			40,261			2,889			(278	)(2b)		42,872
Corporate expenses		12,589						12,589									12,589
Total operating costs and expenses		252,275			75,091			327,366			13,052			(638	)		339,780
Operating income		38,772			3,465			42,237			4,495			638			47,370
Interest expense		(15,358	)		(5,463	)		(20,821	)		(2,082	)		(2,355	)(2c)		(25,258	)
Interest income		2,476			(55	)		2,421			121						2,542
Equity in losses of joint ventures		(947	)					(947	)					(180	)(2d)		(1,127	)
Gain on sale of assets		—			753			753									753
Other income, net		2,677						2,677			(1,950	)		(234	)(2e)		493
Income before income taxes and minority interest		27,620			(1,300	)		26,320			584			(2,131	)		24,773
Income tax expense		(2,871	)					(2,871	)		(756	)					(3,627	)
Minority interest expense in SHR’s operating partnership		(632	)		77			(555	)					61	(2f)		(494	)
Minority interest expense in consolidated hotel joint ventures		(789	)					(789	)								(789	)
Income from continuing operations	$	23,328		$	(1,223	)	$	22,105		$	(172	)	$	(2,070	)	$	19,863
Income from continuing operations applicable to common shareholders per share:
Basic:	$	0.23														$	0.07	(5)
Diluted:	$	0.23														$	0.07	(5)

4

Notes to Unaudited Pro Forma Consolidated Statement of Operations

For the Six Months Ended June 30, 2006

1. Previously Filed Pro Forma Information – The pro forma adjustments filed on our September 20, 2006 Form 8-K/A were made to account for the following transactions:

a) On March 1, 2006 we purchased the Four Seasons Washington D.C. hotel. We used proceeds from common and preferred stock offerings to acquire this property.

b) On June 1, 2006 we purchased the Westin St. Francis hotel. We used proceeds from common and preferred stock offerings to acquire this property.

c) On September 7, 2006 we sold the Burbank Airport Hilton & Convention Center.

d) On July 7, 2006 we purchased the Ritz-Carlton Laguna Niguel hotel. We used proceeds from common and preferred stock offerings and mortgage debt proceeds to acquire this property.

e) On July 6, 2006 we entered into a mortgage loan with Metropolitan Life Insurance Company. The principal amount of the loan is $220.0 million and the loan accrues interest at LIBOR plus 0.70%. The loan is secured by, among other things, the Westin St. Francis hotel. Proceeds from the loan were used to partially fund the acquisition of the Ritz-Carlton Laguna Niguel.

2. InterContinental Prague Hotel Historical and Pro Forma Adjustments –On August 3, 2006 we purchased a 65% interest in the InterContinental Prague Hotel for $68.8 million plus assumed debt of $56.5 million. We used borrowings under our bank credit facility to acquire this property. The following pro forma adjustments were made to account for this acquisition and all pro forma activity:

a) Reflects the $0.4 million elimination of InterContinental Prague’s historical asset management fee expense.

b) Reflects a $0.3 million incremental decrease from historical depreciation and amortization expense, based on the carrying value of the acquired assets adjusted for purchase accounting.

c) Reflects a $2.4 million incremental increase from historical interest expense related to the $75.9 million of revolver debt used to acquire the hotel and related working capital. We used a weighted average LIBOR rate of 4.71% plus the designated spread to calculate interest expense for the additional revolver debt.

d) Reflects the $0.2 million elimination of equity in earnings of joint venture.

e) Reflects the $0.2 million elimination of the Company’s historical asset management fee income from the InterContinental Prague.

f) Reflects the $61,000 adjustment for minority interest to give effect to the weighted average 2.64% interest in the operating partnership owned by others.

3. Income From Continuing Operations Applicable to Common Shareholders Per Share Calculation –The following table calculates the pro forma weighted average basic and diluted income from continuing operations applicable to common shareholders per share:

	(In thousands except per share amounts)
	Basic			Diluted
Historical basic and diluted weighted average shares outstanding for the six months ended June 30, 2006		60,750			60,950
Pro forma impact of common stock offerings		14,030			14,030
Pro forma basic and diluted weighted average shares outstanding for the six months ended June 30, 2006		74,780			74,980
Pro forma income from continuing operations for the six months ended June 30, 2006	$	19,863		$	19,863
Historical preferred shareholder dividends		(9,620	)		(9,620	)
Pro forma Series B Preferred shareholder dividend		(791	)		(791	)
Pro forma Series C Preferred shareholder dividend		(4,513	)		(4,513	)
Pro forma income from continuing operations applicable to common shareholders for the six months ended June 30, 2006	$	4,939		$	4,939
Pro forma income from continuing operations applicable to common shareholders per share for the six months ended June 30, 2006 – basic and diluted	$	0.07		$	0.07

5

Strategic Hotels & Resorts, Inc.

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2005

(in thousands, except per share amounts)

	Strategic Hotels & Resorts, Inc. Historical Consolidated			Previously Filed Pro Forma Information (1)			Strategic Hotels & Resorts, Inc. Pro Forma			InterContinental Prague Historical			Pro Forma Adjustments			Strategic Hotels & Resorts, Inc. Pro Forma Consolidated
Revenues:
Rooms	$	257,628		$	83,292		$	340,920		$	21,672		$	—		$	362,592
Food and beverage		164,838			64,911			229,749			7,937						237,686
Other hotel operating revenue		53,492			20,064			73,556			3,922						77,478
		475,958			168,267			644,225			33,531			—			677,756
Lease revenue		16,787						16,787									16,787
Total revenues		492,745			168,267			661,012			33,531			—			694,543
Operating Costs and Expenses:
Rooms		62,730			29,199			91,929			3,628						95,557
Food and beverage		116,493			52,027			168,520			5,049						173,569
Other departmental expenses		136,559			14,846			151,405			5,547						156,952
Management fees		15,033			10,727			25,760			1,618			(871	)(2a)		26,507
Other hotel expenses		29,089			38,823			67,912			4,141						72,053
Lease expense		13,178						13,178									13,178
Depreciation and amortization		49,824			28,312			78,136			6,139			(917	)(2b)		83,358
Corporate expenses		21,023						21,023									21,023
Total operating costs and expenses		443,929			173,934			617,863			26,122			(1,788	)		642,197
Operating income		48,816			(5,667	)		43,149			7,409			1,788			52,346
Interest expense		(36,142	)		(8,006	)		(44,148	)		(3,945	)		(3,761	)(2c)		(51,854	)
Interest income		2,117			(112	)		2,005			48						2,053
Gain on sale of assets		—			356			356									356
Loss on early extinguishment of debt		(7,572	)		1,032			(6,540	)								(6,540	)
Other income, net		8,359						8,359			6,391			(3,497	)(2d)		11,253
Income before income taxes and minority interest		15,578			(12,397	)		3,181			9,903			(5,470	)		7,614
Income tax expense		(1,298	)		(592	)		(1,890	)		(2,203	)					(4,093	)
Minority interests		(3,508	)		2,307			(1,201	)		1			(340	)(2e)		(1,540	)
Income from continuing operations	$	10,772		$	(10,682	)	$	90		$	7,701		$	(5,810	)	$	1,981
Income (loss) from continuing operations applicable to common shareholders per share:
Basic:	$	0.11														$	(0.47	)(3)
Diluted:	$	0.11														$	(0.47	)(3)

6

Notes to Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2005

1. Previously Filed Pro Forma Information – The pro forma adjustments filed on our September 20, 2006 Form 8-K/A were made to account for the following transactions:

a) We entered into partnership agreements with InterContinental Hotels Group (the Ventures) and on April 1, 2005 we purchased an 85% controlling interest in the Ventures which own the InterContinental hotels in Chicago and Miami. In connection with this transaction, the Ventures obtained $202.0 million of debt financing.

b) On March 1, 2006 we purchased the Four Seasons Washington D.C. hotel. We used proceeds from common and preferred stock offerings to acquire this property.

c) On June 1, 2006 we purchased the Westin St. Francis hotel. We used proceeds from common and preferred stock offerings to acquire this property.

d) On July 14, 2006 we sold the Marriott Rancho Las Palmas Resort.

e) On September 7, 2006 we sold the Burbank Airport Hilton & Convention Center.

f) On July 7, 2006 we purchased the Ritz-Carlton Laguna Niguel hotel. We used proceeds from common and preferred stock offerings and mortgage debt proceeds to acquire this property.

g) On July 6, 2006 we entered into a mortgage loan with Metropolitan Life Insurance Company. The principal amount of the loan is $220.0 million and the loan accrues interest at LIBOR plus 0.70%. The loan is secured by, among other things, the Westin St. Francis hotel. Proceeds from the loan were used to partially fund the acquisition of the Ritz-Carlton Laguna Niguel.

2. InterContinental Prague Hotel Historical and Pro Forma Adjustments – On August 3, 2006 we purchased a 65% interest in the InterContinental Prague Hotel for $68.8 million plus assumed debt of $56.5 million. We used borrowings under our bank credit facility to acquire this property. The following pro forma adjustments were made to account for this acquisition and minority interest for all pro forma activity:

a) Reflects the $0.9 million elimination of InterContinental Prague’s historical asset management fee expense.

b) Reflects a $0.9 million incremental decrease from historical depreciation and amortization expense, based on the carrying value of the acquired assets adjusted for purchase accounting.

c) Reflects a $3.8 million incremental increase from historical interest expense related to the $75.9 million of revolver debt used to acquire the hotel and related working capital. We used a weighted average LIBOR rate of 3.46% plus the designated spread to calculate interest expense for the additional revolver debt.

d) Reflects the $3.5 million elimination of equity in earnings of joint venture and the Company’s historical asset management fee income from the InterContinental Prague.

e) Reflects the $0.3 million adjustment for minority interest to give effect to the weighted average 15.26% interest in the operating partnership owned by others.

3. Loss From Continuing Operations Applicable to Common Shareholders Per Share Calculation –The following table calculates the pro forma weighted average basic and diluted loss from continuing operations applicable to common shareholders per share:

	(In thousands except per share amounts)
	Basic			Diluted
Historical basic and diluted weighted average shares outstanding for the year ended December 31, 2005		35,376			35,577
Pro forma impact of common stock offerings		24,100			24,100
Restricted stock units no longer dilutive under pro forma loss from continuing operations		—			(201	)
Pro forma basic and diluted weighted average shares outstanding for the year ended December 31, 2005		59,476			59,476
Pro forma income from continuing operations for the year ended December 31, 2005	$	1,981		$	1,981
Historical preferred shareholder dividends		(6,753	)		(6,753	)
Pro forma Series A Preferred shareholder dividend		(1,747	)		(1,747	)
Pro forma Series B Preferred shareholder dividend		(9,488	)		(9,488	)
Pro forma Series C Preferred shareholder dividend		(11,859	)		(11,859	)
Pro forma loss from continuing operations applicable to common shareholders for the year ended December 31, 2005	$	(27,866	)	$	(27,866	)
Pro forma loss from continuing operations applicable to common shareholders per share for the year ended December 31, 2005 – basic and diluted	$	(0.47	)	$	(0.47	)

7