Strategic Hotels & Resorts (BEE+C) 8-K Company Progress Report and Industry Update

Exhibit 99.1

I.

Company Progress Report and Industry Update

II.

Debt Structure and Liquidity

III.

Question and Answer

IV.

Hotel del Coronado Overview

V.

Property Tour

Agenda

I.

Company Progress Report and Industry Update

Agenda

Progress Report

Progress to Date

Operating strategies

EBITDA margin decline of 70 basis points on flat RevPAR

Corporate overhead

14% reduction; reviewing additional opportunities

Capital programs

Deferrals substantially reducing 2009 commitments

Cancelled Fairmont Chicago, Aqua building expansion

Corporate liquidity

Sold Hyatt Regency Phoenix for $96 million

Suspended dividend; $90 million through end of 2009

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

-4.0%

-1.0%

2.0%

5.0%

8.0%

11.0%

14.0%

-5.0%

-3.0%

-1.0%

1.0%

3.0%

5.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Economic and Industry Indicators

Unemployment

GDP Growth

Consumer Confidence

Luxury Supply Growth

Is this 9/11, 1991 or 1970s?

Source: Smith Travel Research

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

RevPAR Growth

GDP Growth

Supply Change

Is this 9/11, 1991 or 1970s?

Source: Smith Travel Research

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

RevPAR Growth

GDP Growth

Supply Change

1991 Recession

GDP Growth:  -

0.2%

RevPAR

Growth:  -

3.4%

3-Year Supply Growth:  16.0%

4 consecutive quarters of

negative RevPAR

growth

Is this 9/11, 1991 or 1970s?

Source: Smith Travel Research

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

RevPAR Growth

GDP Growth

Supply Change

1991 Recession

GDP Growth:  -

0.2%

RevPAR

Growth:  -

3.4%

3-Year Supply Growth:  16.0%

4 consecutive quarters of

negative RevPAR

growth

2001 Recession

GDP Growth:  0.8%

RevPAR

Growth:  -14.4%

3-Year Supply Growth:  25.9%

9 out of 10 quarters of

negative RevPAR

growth

Is this 9/11, 1991 or 1970s?

Source: Smith Travel Research

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

RevPAR Growth

GDP Growth

Supply Change

1991 Recession

GDP Growth:  -

0.2%

RevPAR

Growth:  -

3.4%

3-Year Supply Growth:  16.0%

4 consecutive quarters of

negative RevPAR

growth

2001 Recession

GDP Growth:  0.8%

RevPAR

Growth:  -14.4%

3-Year Supply Growth:  25.9%

9 out of 10 quarters of

negative RevPAR

growth

2009 Estimates

GDP Growth:  -

0.1%

3-

5

quarter recession

3-Year Supply Growth:  6.2%

Lodging Fundamentals

4 Week Moving Average; Running 28 Day RevPAR Growth

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Luxury

BEE

Upper Upscale

Lodging Fundamentals

4 Week Moving Average; Running 28 Day RevPAR Growth

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

0

10

20

30

40

50

60

70

80

90

Luxury

BEE

Upper Upscale

VIX Index

Lodging Fundamentals

4 Week Moving Average; Running 28 Day RevPAR Growth

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

Luxury

BEE

Upper Upscale

MAR:  -3% to -5%

HST:  -3% to -5%

HOT:  -9% to -11%

LHO:  -6% to -8%

BEE:  -12% to -14%

LHO / HST

suspend guidance

MAR warns lower

I.

Company Progress Report and Industry Update

II.

Debt Structure and Liquidity

Agenda

Debt and Swap Maturity Schedules

$ in millions

Consolidated Debt Maturity

Swap Maturity

Weighted Average Maturity: 3.3 years

Weighted Average Maturity: 4.9 years

$611

$873

$140

$0

$300

$600

$900

2008

2009

2010

2011

2012

Thereafter

$100

$375

$790

$0

$300

$600

$900

2008

2009

2010

2011

2012

Thereafter

Debt Structure

Comments

Mortgage Debt

Low leverage at origination

Average 2.3x fixed charge coverage

Average 83 bps spread bps over LIBOR

Non cross-collateralized and non-recourse

First maturity in August 2011

Convertible Debt

No covenants

Cross to corporate line of credit

Recourse to company

Matures in April 2012

Corporate Line of Credit

Limited by fixed charge and leverage covenants

Low cost with beneficial structure                          

Recourse to the company

Matures in March 2012

Convertible Debt

$179

Mortgage Debt

$1,317

Credit Facility

$127

Six Unencumbered Assets

$74 million in EBITDA

Four Seasons

Mexico City

Four Seasons

Punta Mita

Four Seasons

Washington, D.C.

Ritz-Carlton

Laguna Niguel

Marriott

Lincolnshire Resort

Renaissance

Hotel Le Parc Trocadero

Summary

Lack of visibility into length and depth of downturn

Focus on making fixed operating costs variable

Continue to seek asset sales in difficult market

Taking advantage of collateral quality to improve line of credit

I.

Company Progress Report and Industry Update

II.

Debt Structure and Liquidity

III.

Question and Answer

Agenda

I.

Company Progress Report and Industry Update

II.

Debt Structure and Liquidity

III.

Question and Answer

IV.

Hotel del Coronado Overview

Agenda

Hotel del Coronado

Purchase Price:  $745 million; January 2006

757 rooms; 135,500 square feet of meeting space

BEE 45% Managing Partner; $70 million investment

Completed Capital Improvements:  $90 million

Acquisition Overview

Hotel del Coronado

Top 10 Resorts in the World

–

USA Today

Best Resort Getaway

–

L.A. Magazine

Top 10 Family Resorts

–

Travel + Leisure Family Magazine

#1 Best Beach in Southern California

–

Travel Channel

#2 Best Beach in the U.S.A.

–

Travel Channel

Best Hotel Dinner

–

San Diego Magazine Poll

Restaurant Wine Award

–

Wine Spectator Magazine

Hall of Fame

–

Meetings and Conventions Magazine

Awards and Accolades

Beach Village Development

Capital Spend:  $57.0 million; Gross Sales: $115 million

Guestroom Renovation

Capital Spend:  $8.0 million

Spa and Fitness Center

Capital Spend:  $18.0 million

Restaurant Renovation

Capital Spend:  $1.5 million

ENO Wine Room

Capital Spend:  $700K

Retail Conversion

Capital Spend:  $1.9 million

Sun Deck

Capital Spend:  $1.0 million

Operating Performance

$ in millions

2000

2001

2002

2003

ADR

$244.62

$248.89

$257.37

$272.25

Occupancy

78.3%

77.1%

80.8%

80.9%

RevPAR

$191.64

$191.77

$207.86

$220.22

Growth

0.3%

0.1%

8.4%

5.9%

EBITDA

$30.9

$30.3

$34.3

$38.5

2004

2005

2006

2007

ADR

$284.41

$285.67

337.56

$  

354.52

$  

Occupancy

78.8%

81.9%

80.0%

74.4%

RevPAR

$224.25

$234.10

270.18

$  

263.92

$  

Growth

1.8%

4.4%

15.4%

(2.3%)

EBITDA

$42.7

$49.1

$52.9

$53.0

I.

Company Progress Report and Facility Update

II.

Debt Structure and Liquidity

III.

Question and Answer

IV.

Hotel del Coronado Overview

V.

Property Tour

Agenda