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

Exhibit 99.2

Strategic Hotels & Resorts

Supplemental Financial Information

December 31, 2008

Supplemental Financial Information

December 31, 2008

TABLE OF CONTENTS

	PAGE
CORPORATE INFORMATION
The Company	1
Board of Directors	2
Officers	3
Equity Research Coverage	4
FINANCIAL HIGHLIGHTS
Supplemental Financial Data	5
Consolidated Statements of Operations	6
Consolidated Balance Sheets	7
Discontinued Operations	8
Investment in the Hotel del Coronado	9
Summary of Residential Activity	10
Leasehold Information	11
Non-GAAP Financial Measures	12
Reconciliation of Net (Loss) Income Available to Common Shareholders to EBITDA, Adjusted EBITDA and Comparable EBITDA	13
Reconciliation of Net (Loss) Income Available to Common Shareholders to Funds From Operations (FFO), FFO - Fully Diluted and Comparable FFO	14
Debt Summary	15
PORTFOLIO DATA
Portfolio at December 31, 2008	16
Under Construction and Completed Capital Projects	17
Seasonality by Geographic Region	18
Operating Statistics by Geographic Region	19
Selected Financial and Operating Information by Property	20-24
Reconciliation of Property EBITDA to EBITDA	25
Reconciliation of Property EBITDA to Comparable EBITDA	26

Supplemental Financial Information

December 31, 2008

CORPORATE INFORMATION

The Company

Strategic Hotels & Resorts Inc. (SHR) 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 19 properties totaling 8,347 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 Equivalent Employees:

47

Corporate Headquarters:

200 West Madison Street, Suite 1700

Chicago, IL 60606

(312) 658-5000

Company Contacts:

James Mead

Chief Financial Officer

(312) 658-5000

Ryan Bowie

Vice President and Treasurer

(312) 658-5000

1

Supplemental Financial Information

December 31, 2008

Board of Directors

William A. Prezant

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

Laurence S. Geller

Director, President and Chief Executive Officer

Robert P. Bowen

Director and Chairman of the Audit Committee

James A. Jeffs

Director and Chairman of the Compensation Committee

Michael W. Brennan

Director

Kenneth Fisher

Director

Richard D. Kincaid

Director

Sir David M.C. Michels

Director

2

Supplemental Financial Information

December 31, 2008

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

Stephen M. Briggs

Senior Vice President, Principal Accounting Officer

Jayson C. Cyr

Senior Vice President, Internal Audit

Paula C. Maggio

Senior Vice President, Secretary & General Counsel

Robert T. McAllister

Senior Vice President, Tax

Patricia A. Needham

Senior Vice President, Assistant Secretary

John K.T. Barrett

Vice President, Asset Management

Ryan M. Bowie

Vice President & Treasurer

Gregory A. Brenner

Vice President, Controller

D. Robert Britt

Vice President, Asset Management

Michael A. Dalton

Vice President, Design

Thomas G. Healy

Vice President, Asset Management

David R. Hogin, Jr.

Vice President, Asset Management

Michael E. Nelson

Vice President, Asset Management

John C. Nicolls

Vice President, Capital Projects

Cory P. Warning

Vice President, Development

3

Supplemental Financial Information

December 31, 2008

Equity Research Coverage

Firm	Analyst	Telephone
Deutsche Bank North America	Chris Woronka	(212) 250-5815
Green Street Advisors, Inc.	John Arabia	(949) 640-8780
JMP Securities	Will Marks	(415) 835-8944
Keefe, Bruyette & Woods	Smedes Rose	(212) 887-3696
Raymond James & Associates	William Crow	(727) 567-2594
RBC Capital Markets Corp.	Mike Salinsky	(440) 715-2648
Robert W. Baird & Co.	David Loeb	(414) 765-7063
Stifel Nicolaus	Rod Petrik	(443) 224-1306
UBS Securities LLC	William Truelove	(212) 713-8825
Wachovia Securities	Jeffrey Donnelly	(617) 603-4262

Strategic Hotels & Resorts is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Strategic Hotels & Resorts' 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.

4

Supplemental Financial Information

December 31, 2008

FINANCIAL HIGHLIGHTS

Supplemental Financial Data

	Three Months Ended December 31, 2008
	Actual			Guidance
Results vs. Previous Guidance
North American Total RevPAR growth		(13.0	)%		(15.0)% - (13.0)	%
North American RevPAR growth		(13.3	)%		(14.0)% - (12.0)	%
Comparable EBITDA (in millions)	$	48.7		$	41.9 - 47.9
Comparable FFO per diluted share	$	0.17		$	0.11 - 0.19
Weighted average diluted shares (in thousands) (a)		76,122
(in thousands, except per share information)
	December 31, 2008
	Pro Rata Share			Consolidated
Capitalization
Common shares outstanding		74,410			74,410
Operating partnership units outstanding		976			976
Stock options outstanding		885			885
Restricted stock units outstanding		1,304			1,304
Combined shares, options and units outstanding		77,575			77,575
Common stock price at end of period	$	1.68		$	1.68
Common equity capitalization	$	130,326		$	130,326
Preferred equity capitalization		370,236			370,236
Consolidated debt		1,686,950			1,686,950
Pro rata share of unconsolidated debt		282,385			—
Pro rata share of consolidated debt		(107,065	)		—
Cash and cash equivalents		(80,954	)		(80,954	)
Total enterprise value	$	2,281,878		$	2,106,558
Net Debt / Total Enterprise Value		78.1	%		76.2	%
Preferred Equity / Total Enterprise Value		16.2	%		17.6	%
Common Equity / Total Enterprise Value		5.7	%		6.2	%
Dividends Per Share
Common dividends declared (holders of record on March 28, June 30 and September 30, 2008)				$	0.24
Preferred Series A dividends declared (holders of record on March 21, June 20, September 19 and December 19, 2008)				$	0.53125
Preferred Series B dividends declared (holders of record on March 21, June 20, September 19 and December 19, 2008)				$	0.51563
Preferred Series C dividends declared (holders of record on March 21, June 20, September 19 and December 19, 2008)				$	0.51563

(a) The calculation of weighted average diluted shares is consistent with the guidance prescribed by the National Association of Real Estate Investment Trusts.

5

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
Revenues:	2008			2007			2008			2007
Rooms	$	117,533		$	129,110		$	534,342		$	507,686
Food and beverage		80,746			93,272			324,829			327,701
Other hotel operating revenue		28,962			30,022			110,364			108,760
		227,241			252,404			969,535			944,147
Lease revenue		1,170			6,076			5,387			23,405
Total revenues		228,411			258,480			974,922			967,552
Operating Costs and Expenses:
Rooms		30,662			31,962			133,299			125,313
Food and beverage		54,925			60,970			225,884			222,016
Other departmental expenses		62,072			63,496			250,772			238,813
Management fees		7,758			9,398			38,265			37,131
Other hotel expenses		15,443			17,352			60,739			65,301
Lease expense		3,926			4,048			17,489			15,700
Depreciation and amortization		32,310			26,997			122,466			103,253
Impairment losses and other charges		265,141			14			361,820			7,372
Corporate expenses		5,472			9,109			27,009			30,179
Total operating costs and expenses		477,709			223,346			1,237,743			845,078
Operating (loss) income		(249,298	)		35,134			(262,821	)		122,474
Interest expense		(20,872	)		(23,889	)		(85,578	)		(87,246	)
Interest income		317			882			1,814			2,715
Loss on early extinguishment of debt		—			—			—			(7,845	)
Equity in (losses) earnings of joint ventures		(360	)		132			2,810			8,344
Foreign currency exchange loss		(4,896	)		(156	)		(814	)		(3,701	)
Other expenses, net		(196	)		(716	)		(690	)		(201	)
(Loss) income before income taxes, minority interests, distributions in excess of minority interest capital, (loss) gain on sale of minority interests in hotel properties and discontinued operations		(275,305	)		11,387			(345,279	)		34,540
Income tax expense		(3,652	)		(39	)		(10,402	)		(9,479	)
Minority interest in SHR’s operating partnership		3,578			(188	)		4,631			(351	)
Minority interest in consolidated affiliates		(983	)		(535	)		(3,870	)		(1,363	)
Distributions in excess of minority interest capital		—			—			(2,499	)		—
(Loss) income before (loss) gain on sale of minority interests in hotel properties and discontinued operations		(276,362	)		10,625			(357,419	)		23,347
(Loss) gain on sale of minority interests in hotel properties		—			(134	)		(46	)		84,658
(Loss) income from continuing operations		(276,362	)		10,491			(357,465	)		108,005
Income (loss) from discontinued operations, net of tax and minority interests		20			2,655			44,041			(38,847	)
Net (loss) income	$	(276,342	)	$	13,146		$	(313,424	)	$	69,158
Preferred shareholder dividends		(7,722	)		(7,722	)		(30,886	)		(30,107	)
Net (loss) income available to common shareholders	$	(284,064	)	$	5,424		$	(344,310	)	$	39,051
Basic (Loss) Income Per Share:
(Loss) income from continuing operations available to common shareholders per share	$	(3.78	)	$	0.04		$	(5.17	)	$	1.04
Income (loss) from discontinued operations per share		—			0.03			0.59			(0.52	)
Net (loss) income available to common shareholders per share	$	(3.78	)	$	0.07		$	(4.58	)	$	0.52
Weighted average common shares outstanding		75,146			74,803			75,140			75,075
Diluted (Loss) Income Per Share:
(Loss) income from continuing operations available to common shareholders per share	$	(3.78	)	$	0.04		$	(5.17	)	$	1.04
Income (loss) from discontinued operations per share		—			0.03			0.59			(0.52	)
Net (loss) income available to common shareholders per share	$	(3.78	)	$	0.07		$	(4.58	)	$	0.52
Weighted average common shares outstanding		75,146			75,001			75,140			75,324

6

Supplemental Financial Information

December 31, 2008 and 2007

Consolidated Balance Sheets

(in thousands, except share data)

	December 31,
	2008			2007
Assets
Investment in hotel properties, net	$	2,383,860		$	2,427,273
Goodwill		120,329			462,536
Intangible assets, net of accumulated amortization of $3,096 and $3,271		32,277			45,420
Investment in joint ventures		82,122			78,801
Cash and cash equivalents		80,954			111,494
Restricted cash and cash equivalents		37,358			39,161
Accounts receivable, net of allowance for doubtful accounts of $2,203 and $1,965		70,945			82,217
Deferred financing costs, net of accumulated amortization of $6,787 and $4,809		10,668			14,868
Deferred tax assets		38,260			41,790
Other assets		52,687			62,736
Total assets	$	2,909,460		$	3,366,296
Liabilities and Shareholders’ Equity
Liabilities:
Mortgages and other debt payable	$	1,301,535		$	1,363,855
Exchangeable senior notes, net of discount		179,415			179,235
Bank credit facility		206,000			109,000
Accounts payable and accrued expenses		281,918			266,324
Distributions payable		—			18,179
Deferred tax liabilities		34,236			36,407
Deferred gain on sale of hotels		104,251			114,292
Total liabilities		2,107,355			2,087,292
Minority interests in SHR’s operating partnership		5,330			11,512
Minority interests in consolidated affiliates		27,203			30,653
Shareholders’ equity:
8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value; 4,488,750 shares issued and outstanding; liquidation preference $25.00 per share)		108,206			108,206
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)		110,775			110,775
8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value; 5,750,000 shares issued and outstanding; liquidation preference $25.00 per share)		138,940			138,940
Common shares ($0.01 par value; 150,000,000 common shares authorized; 74,410,012 and 74,371,230 common shares issued and outstanding)		744			742
Additional paid-in capital		1,208,221			1,201,503
Accumulated deficit		(703,677	)		(304,922	)
Accumulated other comprehensive loss		(93,637	)		(18,405	)
Total shareholders’ equity		769,572			1,236,839
Total liabilities and shareholders’ equity	$	2,909,460		$	3,366,296

7

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Discontinued Operations

The results of operations of hotels sold are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. On July 2, 2008, we sold the Hyatt Regency Phoenix for net sales proceeds of $89.6 million. On December 28, 2007, we sold the Hyatt Regency New Orleans for net sales proceeds of $28.0 million.

The following is a summary of income (loss) from discontinued operations for the three months and years ended December 31, 2008 and 2007 (in thousands):

	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
Hotel operating revenues	$	—		$	10,355		$	24,275		$	40,824
Operating costs and expenses		(221	)		5,875			16,043			29,977
Depreciation and amortization		—			686			1,151			2,838
Impairment losses		—			—			—			37,716
Total operating costs and expenses		(221	)		6,561			17,194			70,531
Operating income (loss)		221			3,794			7,081			(29,707	)
Interest expense		—			—			—			(2,483	)
Interest income		—			3			1			1,058
Loss on early extinguishment of debt		—			—			—			(7,294	)
Other expenses, net		—			(119	)		(257	)		(383	)
Income tax (expense) benefit		(21	)		(968	)		300			(524	)
(Loss) gain on sale of assets		(180	)		—			37,482			—
Minority interests		—			(55	)		(566	)		486
Income (loss) from discontinued operations	$	20		$	2,655		$	44,041		$	(38,847	)

8

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Investment in the Hotel del Coronado

(in thousands)

On January 9, 2006, we purchased a 45% interest in the joint venture that owns the Hotel del Coronado. We account for this investment using the equity method of accounting.

	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
Total revenues (100%)	$	32,484		$	33,409		$	150,808		$	141,404
Property EBITDA (100%)	$	11,148		$	11,226		$	56,846		$	52,926
Equity in earnings of joint venture (SHR 45% ownership)
Property EBITDA	$	5,017		$	5,052		$	25,581		$	23,817
Depreciation and amortization		(1,884	)		(1,707	)		(7,379	)		(6,844	)
Gain (loss) on sale of assets		—			3			—			(239	)
Interest expense		(3,710	)		(5,225	)		(15,204	)		(20,943	)
Other expense, net		(1,240	)		(99	)		(1,378	)		(227	)
Income taxes		108			175			(284	)		(545	)
Equity in (losses) earnings of joint venture	$	(1,709	)	$	(1,801	)	$	1,336		$	(4,981	)
EBITDA Contribution from investment in Hotel del Coronado
Equity in (losses) earnings of joint venture	$	(1,709	)	$	(1,801	)	$	1,336		$	(4,981	)
Depreciation and amortization		1,884			1,707			7,379			6,844
Interest expense		3,710			5,225			15,204			20,943
Income taxes		(108	)		(175	)		284			545
EBITDA Contribution for investment in Hotel del Coronado	$	3,777		$	4,956		$	24,203		$	23,351
FFO Contribution from investment in Hotel del Coronado
Equity in (losses) earnings of joint venture	$	(1,709	)	$	(1,801	)	$	1,336		$	(4,981	)
Depreciation and amortization		1,884			1,707			7,379			6,844
FFO Contribution for investment in Hotel del Coronado	$	175		$	(94	)	$	8,715		$	1,863
Debt	Interest Rate			Spread over LIBOR			Loan Amount			Maturity
CMBS Mortgage and Mezzanine		2.52	%		208 bp		$	610,000			January 2011 (a)
Revolving Credit Facility		2.94	%		250 bp			17,523			January 2011 (a)
								627,523
Cash and cash equivalents								43,597
Net Debt							$	583,926
(a)    Includes extension options.

Cap	Effective Date	LIBOR Cap Rate		Notional Amount		Maturity
CMBS Mortgage and Mezzanine Loan and Revolving Credit Facility Cap	January 2006	5.5	%	$	630,000	January 2009
CMBS Mortgage and Mezzanine Loan and Revolving Credit Facility Cap	January 2009	5.0	%	$	630,000	January 2011

9

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Summary of Residential Activity

(in thousands)

On January 9, 2006, we purchased a 45% interest in a joint venture that owns the North Beach Venture development adjacent to the Hotel del Coronado. We account for this investment using the equity method of accounting. We own a 31% interest in a joint venture that is developing the Four Seasons Residence Club Punta Mita (RCPM) adjacent to the Four Seasons Punta Mita Resort. We account for this investment using the equity method of accounting. In addition, we engage in certain activities related to potential development projects such as condominium-hotel units, fractional ownership units and other for-sale residential units. During the third quarter of 2007, a potential condominium-hotel project at the Fairmont Chicago was delayed indefinitely due to market conditions. We recorded a charge of $1.2 million related to the costs of this project.

	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
North Beach Venture
Hotel condominium sales (100%)	$	2,750		$	15,405		$	2,828		$	110,212
Hotel condominium cost of sales (100%)	$	(1,912	)	$	(11,575	)	$	(2,221	)	$	(77,223	)
SHR’s 45% share
Hotel condominium sales	$	1,238		$	6,932		$	1,273		$	49,595
Hotel condominium cost of sales		(860	)		(5,209	)		(999	)		(34,750	)
Other income, net		43			136			128			186
Income taxes		317			(775	)		325			(6,475	)
SHR’s share of net income	$	738		$	1,084		$	727		$	8,556
Net income	$	738		$	1,084		$	727		$	8,556
Income taxes		(317	)		775			(325	)		6,475
EBITDA Contribution for investment in North Beach Venture	$	421		$	1,859		$	402		$	15,031
FFO Contribution for investment in North Beach Venture	$	738		$	1,084		$	727		$	8,556
	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
RCPM
SHR’s 31% share
Sales	$	1,602		$	1,264		$	4,914		$	3,366
EBITDA Contribution for investment in RCPM	$	691		$	455		$	1,545		$	528
FFO Contribution for investment in RCPM	$	460		$	281		$	987		$	232
	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
Other Residential Activity	$	—		$	—		$	—		$	(1,184	)
SHR’s share of total residential activity:
Sales	$	2,840		$	8,196		$	6,187		$	52,961
EBITDA	$	1,112		$	2,314		$	1,947		$	14,375
FFO	$	1,198		$	1,365		$	1,714		$	7,604

10

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Leasehold Information

(in thousands)

	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
Paris Marriott Champs Elysees:
Property EBITDA	$	3,874		$	4,250		$	21,248		$	18,679
Revenue (a)	$	3,874		$	4,701		$	21,248		$	18,287
Lease Expense		(2,831	)		(2,897	)		(12,536	)		(11,145	)
Less: Deferred Gain on Sale Leaseback		(1,091	)		(1,215	)		(4,933	)		(4,613	)
Adjusted Lease Expense		(3,922	)		(4,112	)		(17,469	)		(15,758	)
EBITDA Contribution from Leasehold	$	(48	)	$	589		$	3,779		$	2,529
Marriott Hamburg:
Property EBITDA	$	1,406		$	1,556		$	6,247		$	5,806
Revenue (a)	$	1,170		$	1,375		$	5,387		$	5,118
Lease Expense		(1,095	)		(1,151	)		(4,953	)		(4,555	)
Less: Deferred Gain on Sale Leaseback		(50	)		(104	)		(228	)		(234	)
Adjusted Lease Expense		(1,145	)		(1,255	)		(5,181	)		(4,789	)
EBITDA Contribution from Leasehold	$	25		$	120		$	206		$	329
Total Leaseholds:
Property EBITDA	$	5,280		$	5,806		$	27,495		$	24,485
Revenue (a)	$	5,044		$	6,076		$	26,635		$	23,405
Lease Expense		(3,926	)		(4,048	)		(17,489	)		(15,700	)
Less: Deferred Gain on Sale Leaseback		(1,141	)		(1,319	)		(5,161	)		(4,847	)
Adjusted Lease Expense		(5,067	)		(5,367	)		(22,650	)		(20,547	)
EBITDA Contribution from Leasehold	$	(23	)	$	709		$	3,985		$	2,858
							December 31,
							2008			2007
Security Deposits (b):
Paris Marriott Champs Elysees							$	15,507		$	14,509
Marriott Hamburg								6,984			7,299
Total							$	22,491		$	21,808

(a) Effective January 1, 2008, the operating results for the Paris Marriott Champs Elysees were consolidated in our financial statements. For the three months and year ended December 31, 2008, Revenue for the Paris Marriott Champs Elysees represents Property EBITDA. For the three months and year ended December 31, 2007, Revenue for the Paris Marriott Champs Elysees represents lease revenue. For the three months and years ended December 31, 2008 and 2007, Revenue for the Marriott Hamburg represents lease revenue.

(b) The security deposits are recorded in other assets on the consolidated balance sheets.

11

Supplemental Financial Information

December 31, 2008

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 management and investors as key measures of our operating performance: Funds from Operations (FFO); FFO—Fully Diluted; Comparable FFO; Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA); Adjusted EBITDA; and Comparable EBITDA. A reconciliation of these measures to net income (loss) 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. NAREIT defines FFO as net income (or loss) (computed in accordance with GAAP) excluding losses or gains from sales of depreciable 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 Diluted, which is FFO plus minority interest expense on convertible minority interests. We also present Comparable FFO, which is FFO—Fully Diluted excluding the impact of any gains or losses on early extinguishment of debt, impairment losses, foreign currency exchange gains or losses and other non-recurring charges. We believe that the presentation of FFO, FFO—Fully Diluted and Comparable FFO provides useful information to management and investors regarding our results of operations because they are measures of our ability to fund capital expenditures and expand our business. In addition, FFO is widely used in the real estate industry to measure operating performance without regard to items such as depreciation and amortization. We also present Comparable FFO per diluted share as a non-GAAP measure of our performance. We calculate Comparable FFO per diluted share for a given operating period as our Comparable FFO (as defined above) divided by the weighted average of fully diluted shares outstanding. Comparable FFO per diluted share, in accordance with NAREIT, is adjusted for the effects of dilutive securities. Dilutive securities may include shares granted under share-based compensation plans, operating partnership units and exchangeable debt securities. No effect is shown for securities that are anti-dilutive.

EBITDA represents net income (loss) 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, foreign currency exchange gains or 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 Diluted, 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, FFO—Fully Diluted, 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 Diluted, 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 Diluted, 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 income (loss) 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 Diluted, Comparable FFO, EBITDA, Adjusted EBITDA and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net income (loss) available to common shareholders, and provide an explanatory description by footnote of the items excluded from FFO, FFO—Fully Diluted, EBITDA and Adjusted EBITDA.

12

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

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

and Comparable EBITDA

(in thousands)

	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
Net (loss) income available to common shareholders	$	(284,064	)	$	5,424		$	(344,310	)	$	39,051
Depreciation and amortization—continuing operations		32,310			26,997			122,466			103,253
Depreciation and amortization—discontinued operations		—			686			1,151			2,838
Interest expense—continuing operations		20,872			23,889			85,578			87,246
Interest expense—discontinued operations		—			—			—			2,483
Income taxes—continuing operations		3,652			39			10,402			9,479
Income taxes—discontinued operations		21			968			(300	)		524
Minority interests		(3,578	)		243			(4,065	)		(135	)
Adjustments from consolidated affiliates		(2,096	)		(2,367	)		(8,354	)		(5,063	)
Adjustments from unconsolidated affiliates		5,276			7,155			22,985			30,603
Preferred shareholder dividends		7,722			7,722			30,886			30,107
EBITDA		(219,885	)		70,756			(83,561	)		300,386
Realized portion of deferred gain on sale leasebacks		(1,141	)		(1,319	)		(5,161	)		(4,847	)
Adjusted EBITDA		(221,026	)		69,437			(88,722	)		295,539
Gain on sale of assets—continuing operations		(4	)		(18	)		(151	)		(18	)
Loss (gain) on sale of assets—discontinued operations		180			—			(37,482	)		—
Loss (gain) on sale of minority interests in hotel properties		—			134			46			(84,658	)
(Gain) loss on sale of assets—unconsolidated affiliates		—			(4	)		—			239
Impairment losses—discontinued operations		—			—			—			37,716
Impairment losses and other charges—continuing operations		265,141			14			361,820			7,372
Foreign currency exchange loss (a)		4,896			156			814			3,701
Hyatt Regency La Jolla minority interest (b)		(530	)		(1,127	)		(4,593	)		(1,127	)
Distributions in excess of minority interest capital		—			—			2,499			—
Termination costs—discontinued operations (c)		—			—			—			(400	)
Planning costs—New Orleans Jazz District		—			—	��		—			227
Loss on early extinguishment of debt—continuing operations		—			—			—			7,845
Loss on early extinguishment of debt—discontinued operations		—			—			—			7,294
Comparable EBITDA	$	48,657		$	68,592		$	234,231		$	273,730

(a) Foreign currency exchange loss applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries.

(b) The minority interest partner’s share of the Hyatt Regency La Jolla’s property EBITDA is not deducted from net (loss) income available to common shareholders under GAAP accounting rules.

(c) Termination costs included in discontinued operations related to the termination of the management agreement at the Marriott Rancho Las Palmas property.

13

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

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

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

(in thousands, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
	2008			2007			2008			2007
Net (loss) income available to common shareholders	$	(284,064	)	$	5,424		$	(344,310	)	$	39,051
Depreciation and amortization—continuing operations		32,310			26,997			122,466			103,253
Depreciation and amortization—discontinued operations		—			686			1,151			2,838
Corporate depreciation		(305	)		(265	)		(1,201	)		(265	)
Gain on sale of assets—continuing operations		(4	)		(18	)		(151	)		(18	)
Loss (gain) on sale of assets—discontinued operations		180			—			(37,482	)		—
Loss (gain) on sale of minority interests in hotel properties		—			134			46			(84,658	)
Realized portion of deferred gain on sale leasebacks		(1,141	)		(1,319	)		(5,161	)		(4,847	)
Deferred tax expense on realized portion of deferred gain on sale leasebacks		333			379			1,530			1,439
Minority interests adjustments		(437	)		(379	)		(1,677	)		(1,449	)
Adjustments from consolidated affiliates		(1,372	)		(1,342	)		(5,376	)		(2,797	)
Adjustments from unconsolidated affiliates		1,884			1,703			7,379			7,083
FFO		(252,616	)		32,000			(262,786	)		59,630
Convertible minority interests		(3,141	)		622			(2,388	)		1,314
FFO—Fully Diluted		(255,757	)		32,622			(265,174	)		60,944
Impairment losses—discontinued operations		—			—			—			37,716
Impairment losses and other charges—continuing operations		265,141			14			361,820			7,372
Foreign currency exchange loss, net of tax (a)		3,556			569			439			4,062
Hyatt Regency La Jolla minority interest (b)		(61	)		(329	)		(2,620	)		(329	)
Distributions in excess of minority interest capital		—			—			2,499			—
Termination costs, net of tax—discontinued operations (c)		—			—			—			(244	)
Planning costs, net of tax—New Orleans Jazz District		—			—			—			166
Loss on early extinguishment of debt—continuing operations		—			—			—			7,845
Loss on early extinguishment of debt—discontinued operations		—			—			—			7,294
Comparable FFO	$	12,879		$	32,876		$	96,964		$	124,826
Comparable FFO per diluted share	$	0.17		$	0.43		$	1.27		$	1.64
Weighted average diluted shares		76,122			75,977			76,192			76,300

(a) Foreign currency exchange loss applicable to third-party and inter-company debt and certain balance sheet items held by foreign subsidiaries.

(b) The minority interest partner’s share of the Hyatt Regency La Jolla’s property FFO is not deducted from net (loss) income available to common shareholders under GAAP accounting rules.

(c) Termination costs, net of tax, included in discontinued operations related to the termination of the management agreement at the Marriott Rancho Las Palmas property.

14

Supplemental Financial Information

December 31, 2008

Debt Summary

(dollars in thousands)

Debt	Interest Rate		Spread (a)		Loan Amount		Maturity (b)
Punta Mita land parcel promissory note	N/A		N/A		$	16,527	August 2009
Bank credit facility	1.69	%	125 bp			206,000	March 2011
Westin St. Francis	1.14	%	70 bp			220,000	August 2011
Fairmont Scottsdale Princess	1.00	%	56 bp			180,000	September 2011
InterContinental Chicago	1.50	%	106 bp			121,000	October 2011
InterContinental Miami	1.17	%	73 bp			90,000	October 2011
InterContinental Prague (c)	4.09	%	120 bp	(c)		145,277	March 2012
Loews Santa Monica Beach Hotel	1.07	%	63 bp			118,250	March 2012
Ritz-Carlton Half Moon Bay	1.11	%	67 bp			76,500	March 2012
Exchangeable senior notes	3.50	%	Fixed			179,415	April 2012
Fairmont Chicago	1.14	%	70 bp			123,750	April 2012
Hyatt Regency La Jolla	1.44	%	100 bp			97,500	September 2012
Marriott London Grosvenor Square (d)	3.87	%	110 bp	(d)		112,731	October 2013
					$	1,686,950

(a) Spread over LIBOR (0.44% at December 31, 2008).

(b) Includes extension options, excluding the conditional one-year extension option on the bank credit facility.

(c) Principal balance of €104,000,000 at December 31, 2008. Spread over three-month EURIBOR (2.89% at December 31, 2008).

(d) Principal balance of £77,250,000 at December 31, 2008. Spread over three-month GBP LIBOR (2.77% at December 31, 2008).

U.S. Interest Rate Swaps

Swap Effective Date	Fixed Pay Rate Against LIBOR	Notional Amount		Maturity
April 2005	4.42%	$	75,000	April 2010
April 2005	4.59%		75,000	April 2012
June 2005	4.12%		50,000	June 2012
June 2006	5.50%		75,000	June 2013
August 2006	5.34%		100,000	August 2011
August 2006	5.42%		100,000	August 2013
September 2006	5.08%		100,000	February 2011
September 2006	5.10%		100,000	December 2010
September 2006	5.09%		100,000	September 2009
March 2007	4.81%		100,000	December 2009
March 2007	4.84%		100,000	July 2012
	4.99%	$	975,000

European Interest Rate Swap

Swap Effective Date	Fixed Pay Rate Against GBP LIBOR	Notional Amount		Maturity
October 2007	5.72%	£	77,250	October 2013
Swap Effective Date	Fixed Pay Rate Against EURIBOR	Notional Amount		Maturity
September 2008	4.53%	€	104,000	March 2012
Forward-Starting Interest Rate Swaps
Swap Effective Date	Fixed Pay Rate Against LIBOR	Notional Amount		Maturity
September 2009	4.90%	$	100,000	September 2014
December 2009	4.96%		100,000	December 2014
April 2010	5.42%		75,000	April 2015
December 2010	5.23%		100,000	December 2015
February 2011	5.27%		100,000	February 2016
		$	475,000

At December 31, 2008, future scheduled debt principal payments (including non-conditional extension options) are as follows:

Years ended December 31,	Amount (in thousands)
2009	$	16,527
2010		7,364
2011		824,364
2012		734,982
2013		103,713
Thereafter		—
Total	$	1,686,950
Percent of fixed rate debt including U.S. and European swaps		84.7	%
Weighted average interest rate including U.S. and European swaps		4.87	%
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year)		4.20

15

Supplemental Financial Information

December 31, 2008

Portfolio Data

Portfolio at December 31, 2008

Hotel	Location	Number of Rooms	% of Total Rooms		% of QTD December 2008 Property EBITDA		QTD December 2008 Property EBITDA
United States:
Westin St. Francis	San Francisco, CA	1,195	14	%	12	%	$	7,170
InterContinental Chicago (a)	Chicago, IL	792	9	%	11	%		6,537
Hotel del Coronado (b)	Coronado, CA	757	9	%	8	%		5,017
Fairmont Chicago	Chicago, IL	687	8	%	7	%		4,335
Fairmont Scottsdale Princess	Scottsdale, AZ	649	8	%	6	%		3,556
InterContinental Miami	Miami, FL	641	8	%	2	%		1,212
Hyatt Regency La Jolla (a)	La Jolla, CA	419	5	%	2	%		1,168
Ritz-Carlton Laguna Niguel	Dana Point, CA	396	5	%	5	%		2,945
Marriott Lincolnshire Resort	Lincolnshire, IL	389	5	%	3	%		1,703
Loews Santa Monica Beach Hotel	Santa Monica, CA	342	4	%	4	%		2,813
Ritz-Carlton Half Moon Bay	Half Moon Bay, CA	261	3	%	3	%		2,083
Four Seasons Washington, D.C.	Washington, D.C.	211	3	%	4	%		2,506
Total United States		6,739	81	%	67	%		41,045
Mexican:
Four Seasons Mexico City	Mexico City, Mexico	240	3	%	4	%		2,282
Four Seasons Punta Mita Resort	Punta Mita, Mexico	173	2	%	8	%		4,962
Total Mexican		413	5	%	12	%		7,244
Total North American		7,152	86	%	79	%		48,289
European:
InterContinental Prague	Prague, Czech Republic	372	5	%	5	%		2,990
Marriott Hamburg (c)	Hamburg, Germany	278	3	%	N/A			N/A
Marriott London Grosvenor Square	London, England	237	3	%	6	%		3,802
Paris Marriott Champs Elysees	Paris, France	192	2	%	6	%		3,874
Renaissance Paris Hotel Le Parc Trocadero (d)	Paris, France	116	1	%	4	%		2,532
Total European		1,195	14	%	21	%		13,198
		8,347	100	%	100	%	$	61,487

(a) On August 31, 2007, we sold 49% interests in the entities that own the InterContinental Chicago and Hyatt Regency La Jolla hotels. We consolidate these hotels for reporting purposes.

(b) 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 earnings of joint ventures in our consolidated statements of operations. The percentage of Property EBITDA above has been calculated based on our 45% ownership.

(c) We have a leasehold interest in this property and have not included it in the percentage of Property EBITDA calculation.

(d) This property, formerly referred to as Hotel Le Parc, was rebranded on April 1, 2008.

16

Supplemental Financial Information

December 31, 2008

Under Construction and Completed Capital Projects

(images of completed projects available on the Company’s website)

Hotel	Project Description	Completed
Fairmont Chicago	ENO, wine tasting room *	Q2 08
	Lobby renovation	Q2 08
	Guest room renovation	Q2 08
	Spa and fitness center	Q1 08
	Gold lounge	Q4 06
	Sushi bar	Q4 06
Fairmont Scottsdale Princess	Main building guest room renovation	Q4 08
	Michael Mina operated Bourbon Steak Restaurant	Q1 08
	Midnight Oil operated Stone Rose Bar	Q1 08
	Gold room renovation	Q1 08
	GM house conversion - 1 room addition	Q1 08
Four Seasons Mexico City	Guest room renovation	Q1 06
Four Seasons Punta Mita	Lobby bar	Q1 08
	Oasis room and river pool - 23 room addition	Q2 07
	Fitness center expansion	Q1 07
	Coral suite - 5 room addition	Q1 07
	Retail expansion	Q4 06
	Tamai pool	Q4 06
	Tamai garden	Q4 06
	Beachfront restaurant addition	Q4 06
	Arena suite - 5 room addition	Q1 06
Four Seasons Washington, D.C.	Lobby renovation	Q1 09
	Michael Mina operated Bourbon Steak Restaurant	Q1 09
	Presidential suite renovation	Q1 09
	11 room expansion	Q1 09
Hotel del Coronado	Retail reconfiguration / renovation	Q2 08
	ENO, wine tasting room *	Q1 08
	Guest room renovation	Q2 07
	Restaurant renovation	Q2 07
	Beach Village - 78 room addition	Q2 07
	Spa & fitness center / beach club	Q1 07
InterContinental Chicago	Starbucks	Q3 07
	Meeting space addition	Q3 07
	ENO, wine tasting room *	Q4 06
InterContinental Miami	Spa and fitness center	Q3 08
	Starbucks	Q3 06
InterContinental Prague	Partial guest room renovation	Q2 07
Loews Santa Monica	Partial guest room renovation	Q4 08
	Restaurant renovation	Q4 04
Marriott London Grosvenor Square	Basement reorganization	Q4 08
	Gordon Ramsay operated Maze Grill Restaurant	Q2 08
	Concierge lounge	Q2 08
	Guest room renovation	Q1 08
Renaissance Paris Hotel Le Parc Trocadero	Renaissance brand conversion	Q1 08
Ritz-Carlton Half Moon Bay	ENO, wine tasting room expansion*	Q3 08
	Restaurant and lounge renovation	Q3 08
	Suite renovation	Q1 08
	Outdoor patios / guest room fireplaces	Q3 06
	Ocean terrace addition	Q2 06
	Restaurant expansion	Q4 05
	ENO, wine tasting room*	Q3 05
	Retail expansion	Q3 05
Ritz-Carlton Laguna Niguel	Meeting space renovation	Q4 07
	Suite renovation / conversion - 3 room addition	Q2 07
	ENO, wine tasting room *	Q1 07
Westin St. Francis	Guest room and corridor renovation	In Construction
	Lobby bar	Q3 08

* Strategic’s branded wine room concept

17

Supplemental Financial Information

Four Quarters Ended December 31, 2008

Seasonality by Geographic Region

Same store property revenues have been adjusted to show hotel performance on a comparable quarter-over-quarter basis. Adjustments include (i) exclusion of Hyatt Regency Phoenix and Hyatt Regency New Orleans as their results of operations were reclassified to discontinued operations; (ii) exclusion of the unconsolidated Hotel del Coronado; and (iii) presentation of the hotels without regard to either ownership structure or leaseholds.

United States Hotels (as of December 31, 2008)

Same store property revenues—11 Properties and 5,982 Rooms

	Three Months Ended												Total
	March 31, 2008			June 30, 2008			September 30, 2008			December 31, 2008
Same store property revenues	$	179,564		$	202,580		$	178,391		$	174,328		$	734,863
Same store seasonality %		24.4	%		27.6	%		24.3	%		23.7	%		100.0	%
Mexican Hotels (as of December 31, 2008)
Same store property revenues—2 Properties and 413 Rooms
	Three Months Ended												Total
	March 31, 2008			June 30, 2008			September 30, 2008			December 31, 2008
Same store property revenues	$	28,208		$	23,580		$	17,932		$	20,984		$	90,704
Same store seasonality %		31.1	%		26.0	%		19.8	%		23.1	%		100.0	%
North American Hotels (as of December 31, 2008)
Same store property revenues—13 Properties and 6,395 Rooms
	Three Months Ended												Total
	March 31, 2008			June 30, 2008			September 30, 2008			December 31, 2008
Same store property revenues	$	207,772		$	226,160		$	196,323		$	195,312		$	825,567
Same store seasonality %		25.2	%		27.4	%		23.8	%		23.6	%		100.0	%
European Hotels (as of December 31, 2008)
Same store property revenues—5 Properties and 1,195 Rooms
	Three Months Ended												Total
	March 31, 2008			June 30, 2008			September 30, 2008			December 31, 2008
Same store property revenues	$	34,264		$	48,480		$	47,302		$	37,435		$	167,481
Same store seasonality %		20.5	%		28.9	%		28.2	%		22.4	%		100.0	%

18

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Operating Statistics by Geographic Region

Operating results have been adjusted to show hotel performance on a comparable period basis. Adjustments are the (i) exclusion of unconsolidated Hotel del Coronado, (ii) exclusion of Renaissance Paris Hotel Le Parc Trocadero results for the years ended December 31, 2008 and 2007, (iii) exclusion of Hyatt Regency Phoenix and Hyatt Regency New Orleans as these properties’ results of operations were reclassified to discontinued operations for the three months and years ended December 31, 2008 and 2007 and (iv) presentation of the hotels without regard to either ownership structure or leaseholds.

United States Hotels (as of December 31, 2008)

11 Properties

5,982 Rooms

	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
Average Daily Rate	$	234.61		$	242.46		-3.2	%	$	244.17		$	240.57		1.5	%
Average Occupancy		65.6	%		73.2	%	(7.6	) pts		71.8	%		76.1	%	(4.3	) pts
RevPAR	$	153.94		$	177.51		-13.3	%	$	175.24		$	183.01		-4.2	%
Total RevPAR	$	310.83		$	356.98		-12.9	%	$	335.35		$	350.78		-4.4	%
Property EBITDA Margin		20.7	%		25.5	%	(4.8	) pts		23.2	%		25.2	%	(2.0	) pts
Mexican Hotels (as of December 31, 2008)
2 Properties
413 Rooms
	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
Average Daily Rate	$	472.50		$	485.68		-2.7	%	$	491.52		$	466.85		5.3	%
Average Occupancy		64.5	%		72.6	%	(8.1	) pts		69.2	%		71.5	%	(2.3	) pts
RevPAR	$	304.87		$	352.55		-13.5	%	$	339.95		$	333.64		1.9	%
Total RevPAR	$	552.27		$	638.11		-13.5	%	$	600.06		$	578.20		3.8	%
Property EBITDA Margin		34.5	%		35.7	%	(1.2	) pts		35.9	%		35.5	%	0.4 pts
North American Hotels (as of December 31, 2008)
13 Properties
6,395 Rooms
	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
Average Daily Rate	$	249.47		$	257.84		-3.2	%	$	259.59		$	254.15		2.1	%
Average Occupancy		65.5	%		73.2	%	(7.7	) pts		71.6	%		75.8	%	(4.2	) pts
RevPAR	$	163.52		$	188.67		-13.3	%	$	185.87		$	192.59		-3.5	%
Total RevPAR	$	326.15		$	374.90		-13.0	%	$	352.43		$	365.25		-3.5	%
Property EBITDA Margin		22.2	%		26.6	%	(4.4	) pts		24.6	%		26.2	%	(1.6	) pts
European Same Store Hotels (as of December 31, 2008)
5 Properties (three month period) 4 Properties (year end period)
1,195 Rooms (three month period) 1,079 Rooms (year end period)
	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
Average Daily Rate	$	289.26		$	344.60		-16.1	%	$	346.43		$	327.39		5.8	%
Average Occupancy		73.2	%		79.1	%	(5.9	) pts		76.6	%		81.7	%	(5.1	) pts
RevPAR	$	211.70		$	272.61		-22.3	%	$	265.37		$	267.37		-0.7	%
Total RevPAR	$	340.50		$	422.71		-19.4	%	$	379.35		$	384.02		-1.2	%
Property EBITDA Margin		39.0	%		36.6	%	2.4	pts		39.3	%		39.4	%	(0.1	) pts

19

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

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 and years ended December 31, 2008 and 2007. Property EBITDA reflects property net operating income plus depreciation and amortization.

	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
UNITED STATES HOTELS:
FAIRMONT CHICAGO
Selected Financial Information:
Total revenues	$	16,959		$	18,517		(8.4	)%	$	63,455		$	69,695		(9.0	)%
Property EBITDA (a)	$	4,335		$	5,288		(18.0	)%	$	13,519		$	16,883		(19.9	)%
Selected Operating Information:
Rooms		687			687		—			687			687		—
Average occupancy		62.0	%		74.9	%	(12.9	) pts		62.1	%		75.3	%	(13.2	) pts
ADR	$	248.45		$	233.03		6.6	%	$	241.38		$	221.82		8.8	%
RevPAR	$	154.15		$	174.45		(11.6	)%	$	149.93		$	167.02		(10.2	)%
Total RevPAR	$	268.31		$	292.98		(8.4	)%	$	252.39		$	278.14		(9.3	)%
FAIRMONT SCOTTSDALE PRINCESS
Selected Financial Information:
Total revenues	$	20,263		$	21,012		(3.6	)%	$	89,530		$	94,536		(5.3	)%
Property EBITDA	$	3,556		$	5,544		(35.9	)%	$	18,707		$	25,918		(27.8	)%
Selected Operating Information:
Rooms		649			651		(2	)		649			651		(2	)
Average occupancy		57.1	%		61.6	%	(4.5	) pts		65.0	%		73.7	%	(8.7	) pts
ADR	$	241.39		$	240.21		0.5	%	$	258.31		$	239.44		7.9	%
RevPAR	$	137.89		$	147.97		(6.8	)%	$	167.78		$	176.54		(5.0	)%
Total RevPAR	$	339.36		$	350.83		(3.3	)%	$	376.91		$	397.85		(5.3	)%
FOUR SEASONS WASHINGTON, D.C.
Selected Financial Information:
Total revenues	$	13,916		$	15,286		(9.0	)%	$	51,414		$	53,670		(4.2	)%
Property EBITDA (a)	$	2,506		$	3,757		(33.3	)%	$	7,806		$	10,917		(28.5	)%
Selected Operating Information:
Rooms		211			211		—			211			211		—
Average occupancy		63.4	%		72.8	%	(9.4	) pts		66.2	%		71.5	%	(5.3	) pts
ADR	$	580.00		$	576.49		0.6	%	$	533.61		$	542.58		(1.7	)%
RevPAR	$	367.62		$	419.54		(12.4	)%	$	353.50		$	388.00		(8.9	)%
Total RevPAR	$	716.89		$	787.45		(9.0	)%	$	665.76		$	696.88		(4.5	)%
HOTEL DEL CORONADO
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 45%):
Total revenues	$	32,484		$	33,409		(2.8	)%	$	150,808		$	141,404		6.7	%
Property EBITDA	$	11,148		$	11,226		(0.7	)%	$	56,846		$	52,926		7.4	%
Selected Operating Information:
Rooms		757			757		—			757			757		—
Average occupancy		58.5	%		63.7	%	(5.2	) pts		70.7	%		74.4	%	(3.7	) pts
ADR	$	330.72		$	313.27		5.6	%	$	366.62		$	354.52		3.4	%
RevPAR	$	193.55		$	199.41		(2.9	)%	$	259.24		$	263.92		(1.8	)%
Total RevPAR	$	466.43		$	479.92		(2.8	)%	$	544.31		$	545.56		(0.2	)%

20

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
HYATT REGENCY LA JOLLA
Selected Financial Information:
Total revenues	$	8,050		$	10,280		(21.7	)%	$	39,883		$	42,797		(6.8	)%
Property EBITDA	$	1,168		$	2,326		(49.8	)%	$	9,799		$	11,304		(13.3	)%
Selected Operating Information:
Rooms		419			419		—			419			419		—
Average occupancy		65.3	%		70.5	%	(5.2	) pts		76.1	%		79.7	%	(3.6	) pts
ADR	$	162.50		$	176.49		(7.9	)%	$	182.67		$	184.96		(1.2	)%
RevPAR	$	106.07		$	124.46		(14.8	)%	$	139.07		$	147.49		(5.7	)%
Total RevPAR	$	208.84		$	266.69		(21.7	)%	$	260.07		$	279.84		(7.1	)%
INTERCONTINENTAL CHICAGO
Selected Financial Information:
Total revenues	$	19,310		$	21,765		(11.3	)%	$	78,722		$	81,197		(3.0	)%
Property EBITDA	$	6,537		$	7,250		(9.8	)%	$	25,886		$	25,807		0.3	%
Selected Operating Information:
Rooms		792			792		—			792			792		—
Average occupancy		77.1	%		83.9	%	(6.8	) pts		81.0	%		83.1	%	(2.1	) pts
ADR	$	216.29		$	225.56		(4.1	)%	$	210.44		$	212.56		(1.0	)%
RevPAR	$	166.73		$	189.20		(11.9	)%	$	170.45		$	176.61		(3.5	)%
Total RevPAR	$	265.02		$	298.71		(11.3	)%	$	271.57		$	280.88		(3.3	)%
INTERCONTINENTAL MIAMI
Selected Financial Information:
Total revenues	$	11,530		$	14,405		(20.0	)%	$	53,758		$	54,635		(1.6	)%
Property EBITDA (a)	$	1,212		$	3,592		66.3	%	$	12,877		$	14,733		(12.6	)%
Selected Operating Information:
Rooms		641			641		—			641			641		—
Average occupancy		61.7	%		69.1	%	(7.4	) pts		67.7	%		71.1	%	(3.4	) pts
ADR	$	177.05		$	193.23		(8.4	)%	$	197.68		$	190.80		3.6	%
RevPAR	$	109.25		$	133.57		(18.2	)%	$	133.89		$	135.70		(1.3	)%
Total RevPAR	$	195.52		$	244.27		(20.0	)%	$	229.14		$	233.52		(1.9	)%
LOEWS SANTA MONICA BEACH HOTEL
Selected Financial Information:
Total revenues	$	10,035		$	10,695		(6.2	)%	$	47,899		$	48,548		(1.3	)%
Property EBITDA (a)	$	2,813		$	2,790		0.8	%	$	15,083		$	15,450		(2.4	)%
Selected Operating Information:
Rooms		342			342		—			342			342		—
Average occupancy		70.3	%		76.0	%	(5.7	) pts		83.5	%		85.6	%	(2.1	) pts
ADR	$	280.99		$	280.65		0.1	%	$	309.08		$	300.22		3.0	%
RevPAR	$	197.42		$	213.38		(7.5	)%	$	258.00		$	256.89		0.4	%
Total RevPAR	$	318.92		$	339.92		(6.2	)%	$	382.67		$	388.91		(1.6	)%
MARRIOTT LINCOLNSHIRE RESORT
Selected Financial Information:
Total revenues	$	11,907		$	12,585		(5.4	)%	$	38,456		$	40,644		(5.4	)%
Property EBITDA	$	1,703		$	2,339		(27.2	)%	$	6,267		$	7,482		(16.2	)%
Selected Operating Information:
Rooms		389			389		—			389			389		—
Average occupancy		54.7	%		63.9	%	(9.2	) pts		59.3	%		65.6	%	(6.3	) pts
ADR	$	124.50		$	134.40		(7.4	)%	$	129.19		$	135.42		(4.6	)%
RevPAR	$	68.06		$	85.91		(20.8	)%	$	76.65		$	88.83		(13.7	)%
Total RevPAR	$	257.23		$	288.86		(11.0	)%	$	266.46		$	287.04		(7.2	)%

21

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
RITZ-CARLTON HALF MOON BAY
Selected Financial Information:
Total revenues	$	13,279		$	16,589		(20.0	)%	$	60,140		$	60,158		(0.0	)%
Property EBITDA (a)	$	2,083		$	4,103		(49.2	)%	$	11,846		$	12,073		(1.9	)%
Selected Operating Information:
Rooms		261			261		—			261			261		—
Average occupancy		59.2	%		75.1	%	(15.9	) pts		69.4	%		71.5	%	(2.1	) pts
ADR	$	360.38		$	369.33		(2.4	)%	$	363.44		$	368.51		(1.4	)%
RevPAR	$	213.38		$	277.27		(23.0	)%	$	252.38		$	263.46		(4.2	)%
Total RevPAR	$	553.01		$	690.87		(20.0	)%	$	629.57		$	631.48		(0.3	)%
RITZ-CARLTON LAGUNA NIGUEL
Selected Financial Information:
Total revenues	$	15,515		$	19,020		(18.4	)%	$	75,466		$	81,252		(7.1	)%
Property EBITDA	$	2,945		$	3,857		(23.6	)%	$	20,389		$	22,242		(8.3	)%
Selected Operating Information:
Rooms		396			396		—			396			396		—
Average occupancy		49.0	%		62.9	%	(13.9	) pts		60.6	%		66.9	%	(6.3	) pts
ADR	$	338.08		$	338.12		(0.0	)%	$	394.06		$	382.64		3.0	%
RevPAR	$	165.55		$	212.52		(22.1	)%	$	238.79		$	255.92		(6.7	)%
Total RevPAR	$	425.86		$	525.05		(18.9	)%	$	520.68		$	564.35		(7.7	)%
WESTIN ST. FRANCIS
Selected Financial Information:
Total revenues	$	33,564		$	39,074		(14.1	)%	$	136,143		$	138,622		(1.8	)%
Property EBITDA	$	7,170		$	9,906		(27.6	)%	$	28,531		$	29,987		(4.9	)%
Selected Operating Information:
Rooms		1,195			1,195		—			1,195			1,195		—
Average occupancy		77.5	%		80.6	%	(3.1	) pts		81.5	%		80.0	%	1.5	pts
ADR	$	211.62		$	223.00		(5.1	)%	$	210.27		$	211.64		(0.6	)%
RevPAR	$	164.00		$	179.76		(8.8	)%	$	171.34		$	169.39		1.2	%
Total RevPAR	$	305.29		$	355.42		(14.1	)%	$	311.28		$	317.81		(2.1	)%

(a) For the three months ended December 31, 2007, Property EBITDA excludes the write-off of capitalized costs related to abandoned capital projects of $757,000. For the years ended December 31, 2008 and 2007, Property EBITDA excludes the write-off of capitalized costs related to abandoned capital projects of $98,000 and $2,000,000, respectively.

22

Supplemental Financial Information

Three Months Years Ended December 31, 2008 and 2007

	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
MEXICAN HOTELS:
FOUR SEASONS MEXICO CITY
Selected Financial Information:
Total revenues	$	6,943		$	7,952		(12.7	)%	$	28,819		$	28,049		2.7	%
Property EBITDA	$	2,282		$	2,594		(12.0	)%	$	8,593		$	7,937		8.3	%
Selected Operating Information:
Rooms		240			240		—			240			240		—
Average occupancy		63.5	%		72.2	%	(8.7	) pts		65.9	%		68.3	%	(2.4	) pts
ADR	$	269.83		$	266.73		1.3	%	$	277.22		$	260.08		6.7	%
RevPAR	$	171.26		$	192.65		(11.1	)%	$	182.73		$	177.67		2.8	%
Total RevPAR	$	314.46		$	360.13		(12.7	)%	$	328.09		$	320.19		2.5	%
FOUR SEASONS PUNTA MITA RESORT
Selected Financial Information:
Total revenues	$	14,041		$	16,294		(13.8	)%	$	61,885		$	57,742		7.2	%
Property EBITDA	$	4,962		$	6,062		(18.1	)%	$	23,991		$	22,477		6.7	%
Selected Operating Information:
Rooms		173			173		—			173			173		—
Average occupancy		66.0	%		73.1	%	(7.1	) pts		73.7	%		76.0	%	(2.3	) pts
ADR	$	742.94		$	785.85		(5.5	)%	$	757.49		$	734.73		3.1	%
RevPAR	$	490.22		$	574.38		(14.7	)%	$	558.06		$	558.45		(0.1	)%
Total RevPAR	$	882.18		$	1,023.74		(13.8	)%	$	977.37		$	950.09		2.9	%

23

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

	Three Months Ended December 31,								Years Ended December 31,
	2008			2007			Change		2008			2007			Change
EUROPEAN HOTELS:
INTERCONTINENTAL PRAGUE
Selected Financial Information:
Total revenues	$	7,611		$	10,459		(27.2	)%	$	38,943		$	39,773		(2.1	)%
Property EBITDA	$	2,990		$	4,570		(34.6	)%	$	15,443		$	17,418		(11.3	)%
Selected Operating Information:
Rooms		372			372		—			372			372		—
Average Occupancy		60.2	%		76.5	%	(16.3	) pts		68.2	%		76.6	%	(8.4	) pts
ADR	$	205.95		$	242.42		(15.0	)%	$	249.42		$	240.31		3.8	%
RevPAR	$	123.89		$	185.34		(33.2	)%	$	170.13		$	183.97		(7.5	)%
Total RevPAR	$	222.39		$	305.60		(27.2	)%	$	286.03		$	292.92		(2.4	)%
MARRIOTT HAMBURG
Selected Financial Information:
Total revenues	$	5,505		$	6,238		(11.8	)%	$	23,945		$	22,645		5.7	%
Property EBITDA	$	1,406		$	1,556		(9.6	)%	$	6,247		$	5,806		7.6	%
Selected Operating Information:
Rooms		278			278		—			278			278		—
Average occupancy		81.5	%		80.8	%	0.7	pts		83.1	%		84.2	%	(1.1	) pts
ADR	$	175.76		$	205.15		(14.3	)%	$	197.78		$	185.03		6.9	%
RevPAR	$	143.28		$	165.73		(13.5	)%	$	164.39		$	155.74		5.6	%
Total RevPAR	$	215.23		$	243.90		(11.8	)%	$	235.33		$	223.74		5.2	%
MARRIOTT LONDON GROSVENOR SQUARE
Selected Financial Information:
Total revenues	$	8,956		$	13,591		(34.1	)%	$	38,723		$	45,266		(14.5	)%
Property EBITDA	$	3,802		$	5,541		(31.4	)%	$	15,931		$	17,579		(9.4	)%
Selected Operating Information:
Rooms		237			236		1			237			236		1
Average occupancy		73.7	%		76.4	%	(2.7	) pts		72.9	%		81.2	%	(8.3	) pts
ADR	$	315.98		$	467.39		(32.4	)%	$	410.04		$	417.97		(1.9	)%
RevPAR	$	232.81		$	357.13		(34.8	)%	$	298.99		$	339.57		(11.9	)%
Total RevPAR	$	410.76		$	625.95		(34.4	)%	$	447.04		$	525.49		(14.9	)%
PARIS MARRIOTT CHAMPS ELYSEES
Selected Financial Information:
Total revenues	$	9,280		$	11,268		(17.6	)%	$	48,155		$	43,314		11.2	%
Property EBITDA	$	3,874		$	4,250		(8.8	)%	$	21,248		$	18,679		13.8	%
Selected Operating Information:
Rooms		192			192		—			192			192		—
Average occupancy		85.6	%		89.8	%	(4.2	) pts		88.0	%		88.5	%	(0.5	) pts
ADR	$	509.81		$	571.04		(10.7	)%	$	630.56		$	566.73		11.3	%
RevPAR	$	436.50		$	513.01		(14.9	)%	$	554.64		$	501.45		10.6	%
Total RevPAR	$	525.35		$	637.93		(17.6	)%	$	685.27		$	618.07		10.9	%
RENAISSANCE PARIS HOTEL LE PARC TROCADERO
Selected Financial Information (This table includes financial information only for our period of ownership):
Total revenues	$	6,083		$	4,877		24.7	%	$	17,714			N/A		N/A
Property EBITDA	$	2,532		$	1,069		136.9	%	$	4,069			N/A		N/A
Selected Operating Information (This table includes statistical information only for our period of ownership. For the year ended December 31, 2007, average occupancy was 75.9%, ADR was $321.87, RevPAR was $244.22 and Total RevPAR was $378.16.):
Rooms		116			116		—			116			N/A		N/A
Average occupancy		73.4	%		71.4	%	2.0	pts		71.0	%		N/A		N/A
ADR	$	329.69		$	334.66		(1.5	)%	$	361.77			N/A		N/A
RevPAR	$	242.05		$	238.79		1.4	%	$	256.93			N/A		N/A
Total RevPAR	$	569.97		$	457.01		24.7	%	$	417.24			N/A		N/A

24

Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Reconciliation of Property EBITDA to EBITDA

(in thousands)

	Three Months Ended December 31,										Years Ended December 31,
	2008					2007					2008					2007
	Property EBITDA		EBITDA			Property EBITDA		EBITDA			Property EBITDA		EBITDA			Property EBITDA		EBITDA
Hotel
Fairmont Chicago	$	4,335	$	4,335		$	5,288	$	5,288		$	13,519	$	13,519		$	16,883	$	16,883
Fairmont Scottsdale Princess		3,556		3,556			5,544		5,544			18,707		18,707			25,918		25,918
Four Seasons Washington, D.C.		2,506		2,506			3,757		3,757			7,806		7,806			10,917		10,917
Hotel del Coronado		11,148		—			11,226		—			56,846		—			52,926		—
Hyatt Regency La Jolla		1,168		1,168			2,326		2,326			9,799		9,799			11,304		11,304
InterContinental Chicago		6,537		6,537			7,250		7,250			25,886		25,886			25,807		25,807
InterContinental Miami		1,212		1,212			3,592		3,592			12,877		12,877			14,733		14,733
Loews Santa Monica Beach Hotel		2,813		2,813			2,790		2,790			15,083		15,083			15,450		15,450
Marriott Lincolnshire Resort		1,703		1,703			2,339		2,339			6,267		6,267			7,482		7,482
Ritz-Carlton Half Moon Bay		2,083		2,083			4,103		4,103			11,846		11,846			12,073		12,073
Ritz-Carlton Laguna Niguel		2,945		2,945			3,857		3,857			20,389		20,389			22,242		22,242
Westin St. Francis		7,170		7,170			9,906		9,906			28,531		28,531			29,987		29,987
Four Seasons Mexico City		2,282		2,282			2,594		2,594			8,593		8,593			7,937		7,937
Four Seasons Punta Mita Resort		4,962		4,962			6,062		6,062			23,991		23,991			22,477		22,477
InterContinental Prague		2,990		2,990			4,570		4,570			15,443		15,443			17,418		17,418
Marriott Hamburg (a)		1,406		76			1,556		226			6,247		439			5,806		569
Marriott London Grosvenor Square		3,802		3,802			5,541		5,541			15,931		15,931			17,579		17,579
Paris Marriott Champs Elysees (b)		3,874		1,042			4,250		1,177			21,248		9,214			18,679		4,752
Renaissance Paris Hotel Le Parc Trocadero (c)		2,532		2,532			1,069		1,069			4,069		4,069			—		1,748
	$	69,024	$	53,714		$	87,620	$	71,991		$	323,078	$	248,390		$	335,618	$	265,276
Adjustments:
Impairment losses and other charges				(265,141	)				(14	)				(361,820	)				(7,372	)
Corporate expenses				(5,472	)				(9,109	)				(27,009	)				(30,179	)
Interest income				317					882					1,814					2,715
Loss on early extinguishment of debt				—					—					—					(7,845	)
(Loss) gain on sale of minority interests in hotel properties				—					(134	)				(46	)				84,658
Equity in (losses) earnings of joint ventures				(360	)				132					2,810					8,344
Foreign currency exchange loss				(4,896	)				(156	)				(814	)				(3,701	)
Other expenses, net				(196	)				(716	)				(690	)				(201	)
Income (loss) from discontinued operations
(excluding minority interest)				20					2,710					44,607					(39,333	)
Depreciation expense—discontinued operations				—					686					1,151					2,838
Interest expense—discontinued operations				—					—					—					2,483
Income taxes—discontinued operations				21					968					(300	)				524
Minority interest in consolidated affiliates				(983	)				(535	)				(3,870	)				(1,363	)
Distributions in excess of minority interest capital				—					—					(2,499	)				—
Adjustments from consolidated affiliates				(2,096	)				(2,367	)				(8,354	)				(5,063	)
Adjustments from unconsolidated affiliates				5,276					7,155					22,985					30,603
Adjustments for abandoned capital projects				—					(757	)				(98	)				(815	)
Other residential activity				—					—					—					(1,184	)
Other adjustments				(89	)				20					182					1
EBITDA			$	(219,885	)			$	70,756				$	(83,561	)			$	300,386

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

(b) Effective January 1, 2008, we no longer sublease the operations of the Paris Marriott Champs Elysees to a third party and reflect the operating results of the Paris Marriott Champs Elysees in our consolidated statements of operations. However, for the three months and year ended December 31, 2007, EBITDA represents the lease revenue less the lease expense recorded in our statements. Property EBITDA represents the revenue less expenses generated by the property.

(c) We have included the results of the hotel acquired in Property EBITDA above for our period of ownership.

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Supplemental Financial Information

Three Months and Years Ended December 31, 2008 and 2007

Reconciliation of Property EBITDA to Comparable EBITDA

(in thousands)

	Three Months Ended December 31, 2008									Years Ended December 31, 2008
	Property EBITDA			Adjustments			Comparable EBITDA			Property EBITDA			Adjustments			Comparable EBITDA
Meetings & Business Hotels:
Fairmont Chicago	$	4,335		$	—		$	4,335		$	13,519		$	—		$	13,519
Fairmont Scottsdale Princess		3,556			—			3,556			18,707			—			18,707
Four Seasons Mexico City		2,282			—			2,282			8,593			—			8,593
Four Seasons Washington, D.C.		2,506			—			2,506			7,806			—			7,806
Hyatt Regency La Jolla		1,168			(572	)		596			9,799			(4,802	)		4,997
InterContinental Chicago		6,537			(3,203	)		3,334			25,886			(12,685	)		13,201
InterContinental Miami		1,212			—			1,212			12,877			—			12,877
Westin St. Francis		7,170			—			7,170			28,531			—			28,531
Total Meetings & Business Hotels		28,766			(3,775	)		24,991			125,718			(17,487	)		108,231
Ocean Front Resorts:
Four Seasons Punta Mita Resort		4,962			—			4,962			23,991			—			23,991
Hotel del Coronado		11,148			(7,371	)		3,777			56,846			(32,643	)		24,203
Loews Santa Monica Beach Hotel		2,813			—			2,813			15,083			—			15,083
Ritz-Carlton Half Moon Bay		2,083			—			2,083			11,846			—			11,846
Ritz-Carlton Laguna Niguel		2,945			—			2,945			20,389			—			20,389
Total Ocean Front Resorts		23,951			(7,371	)		16,580			128,155			(32,643	)		95,512
European Hotels:
InterContinental Prague		2,990			—			2,990			15,443			—			15,443
Marriott Hamburg		1,406			(1,381	)		25			6,247			(6,041	)		206
Marriott London Grosvenor Square		3,802			—			3,802			15,931			—			15,931
Paris Marriott Champs Elysees		3,874			(3,922	)		(48	)		21,248			(17,469	)		3,779
Renaissance Paris Hotel Le Parc Trocadero		2,532			—			2,532			4,069			—			4,069
Total European Hotels		14,604			(5,303	)		9,301			62,938			(23,510	)		39,428
Non-Core Assets:
Marriott Lincolnshire Resort		1,703			—			1,703			6,267			—			6,267
Total Non-Core Assets		1,703			—			1,703			6,267			—			6,267
	$	69,024		$	(16,449	)	$	52,575		$	323,078		$	(73,640	)	$	249,438
	% of QTD Comparable EBITDA									% of YTD Comparable EBITDA
Meetings & Business Hotels		47	%								43	%
Ocean Front Resorts		32	%								38	%
European Hotels		18	%								16	%
Non-Core Assets		3	%								3	%
Total		100	%								100	%

26