Strategic Hotels & Resorts (BEE+C) 8-K Strategic Hotels & Resorts Reports Second Quarter 2010 Results

Exhibit 99.2

Strategic Hotels & Resorts

Supplemental Financial Information

June 30, 2010

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

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 Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA	13
Reconciliation of Net Loss Attributable to SHR Common Shareholders to Funds From Operations (FFO), FFO - Fully Diluted and Comparable FFO	14
Debt Summary	15
PORTFOLIO DATA
Portfolio at June 30, 2010	16
Seasonality by Geographic Region	17
Operating Statistics by Geographic Region	18
Selected Financial and Operating Information by Property	19-23
Reconciliation of Property EBITDA to EBITDA	24
Reconciliation of Property EBITDA to Comparable EBITDA	25

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

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 currently made up of 17 properties totaling 8,002 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.

We believe 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 we believe 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:

41

Corporate Headquarters:

200 West Madison Street, Suite 1700

Chicago, IL 60606

(312) 658-5000

Company Contacts:

Diane Morefield

Chief Financial Officer

(312) 658-5000

Jonathan Stanner

Vice President, Corporate Finance

(312) 658-5000

1

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

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

Kenneth Fisher

Director

Raymond L. Gellein, Jr.

Director

Richard D. Kincaid

Director

Sir David M.C. Michels

Director

Eugene F. Reilly

Director

2

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

Officers

Laurence S. Geller

President and Chief Executive Officer

Diane M. Morefield

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

Richard J. Moreau

Executive Vice President, Asset Management

Stephen M. Briggs

Senior Vice President, Chief Accounting Officer (Principal Accounting Officer) & Treasurer

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

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

Gregory P. Kennealey

Vice President, Asset Management

Jonathan P. Stanner

Vice President, Corporate Finance

Cory P. Warning

Vice President, Development

3

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

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
Robert W. Baird & Co.	David Loeb	(414) 765-7063
Wells Fargo Securities, LLC	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
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

FINANCIAL HIGHLIGHTS

Supplemental Financial Data

(in thousands, except per share information)

	June 30, 2010
	Pro Rata Share			Consolidated
Capitalization
Common shares outstanding		151,278			151,278
Operating partnership units outstanding		955			955
Restricted stock units outstanding		1,064			1,064
Combined shares, options and units outstanding		153,297			153,297
Common stock price at end of period	$	4.39		$	4.39
Common equity capitalization	$	672,974		$	672,974
Preferred equity capitalization (at $25.00 face value)		370,236			370,236
Consolidated debt		1,294,112			1,294,112
Pro rata share of unconsolidated debt		282,825			—
Pro rata share of consolidated debt		(107,065	)		—
Cash and cash equivalents		(71,822	)		(71,822	)
Total enterprise value	$	2,441,260		$	2,265,500
Net Debt / Total Enterprise Value		57.3	%		54.0	%
Preferred Equity / Total Enterprise Value		15.2	%		16.3	%
Common Equity / Total Enterprise Value		27.5	%		29.7	%

5

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended June 30,							Six Months Ended June 30,
	2010			2009				2010			2009
Revenues:
Rooms	$	106,526		$	99,942			$	196,545		$	191,034
Food and beverage		67,754			58,498				125,650			113,127
Other hotel operating revenue		20,599			25,786				40,894			50,989
		194,879			184,226				363,089			355,150
Lease revenue		1,088			1,169		��		2,275			2,289
Total revenues		195,967			185,395				365,364			357,439
Operating Costs and Expenses:
Rooms		29,037			27,535				55,480			53,535
Food and beverage		46,081			42,180				88,293			83,029
Other departmental expenses		53,405			51,724				104,108			104,447
Management fees		6,934			7,420				12,903			13,712
Other hotel expenses		14,551			13,153				28,127			26,404
Lease expense		3,888			4,159				8,129			8,125
Depreciation and amortization		33,683			33,674				69,540			66,253
Impairment losses and other charges		—			49,755				—			50,214
Corporate expenses		7,556			5,292				13,956			15,588
Total operating costs and expenses		195,135			234,892				380,536			421,307
Operating income (loss)		832			(49,497	)			(15,172	)		(63,868	)
Interest expense		(27,016	)		(26,259	)			(51,708	)		(50,225	)
Interest income		158			97				316			509
Loss on early extinguishment of debt		(886	)		—				(886	)		(883	)
Loss on early termination of derivative financial instruments		(18,263	)		—				(18,263	)		—
Equity in earnings (losses) of joint ventures		459			432				(101	)		571
Foreign currency exchange gain (loss)		5,256			(1,140	)			11,442			801
Other income, net		462			82				694			43
Loss before income taxes and discontinued operations		(38,998	)		(76,285	)			(73,678	)		(113,052	)
Income tax expense		(1,413	)		(690	)			(635	)		(2,222	)
Loss from continuing operations		(40,411	)		(76,975	)			(74,313	)		(115,274	)
Income (loss) from discontinued operations, net of tax		1,849			(1,191	)			1,140			440
Net loss		(38,562	)		(78,166	)			(73,173	)		(114,834	)
Net loss attributable to the noncontrolling interests in SHR's operating partnership		245			1,007				687			1,453
Net (income) loss attributable to the noncontrolling interests in consolidated affiliates		(1,371	)		(1,101	)��			228			(348	)
Net loss attributable to SHR		(39,688	)		(78,260	)			(72,258	)		(113,729	)
Preferred shareholder dividends		(7,722	)		(7,722	)			(15,443	)		(15,443	)
Net loss attributable to SHR common shareholders	$	(47,410	)	$	(85,982	)		$	(87,701	)	$	(129,172	)
Basic and Diluted Loss Per Share:
Loss from continuing operations attributable to SHR common shareholders	$	(0.44	)	$	(1.12	)		$	(0.95	)	$	(1.73	)
Income (loss) from discontinued operations attributable to SHR		0.02			(0.02	)			0.01			0.01
Net loss attributable to SHR common shareholders	$	(0.42	)	$	(1.14	)		$	(0.94	)	$	(1.72	)
Weighted average common shares outstanding		111,573			75,381				93,706			75,166

6

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010 and December 31, 2009

Consolidated Balance Sheets

(in thousands, except share data)

	June 30, 2010			December 31, 2009
Assets
Investment in hotel properties, net	$	2,088,127		$	2,162,584
Goodwill		71,449			75,758
Intangible assets, net of accumulated amortization of $5,320 and $4,400		32,388			34,046
Investment in joint ventures		46,089			46,745
Cash and cash equivalents		71,822			116,310
Restricted cash and cash equivalents		33,117			22,829
Accounts receivable, net of allowance for doubtful accounts of $2,532 and $2,657		50,352			54,524
Deferred financing costs, net of accumulated amortization of $12,682 and $12,543		6,583			11,225
Deferred tax assets		30,268			34,244
Other assets		39,843			39,878
Total assets	$	2,470,038		$	2,598,143
Liabilities and Equity
Liabilities:
Mortgages payable	$	1,239,112		$	1,300,745
Exchangeable senior notes, net of discount		—			169,452
Bank credit facility		55,000			178,000
Accounts payable and accrued expenses		259,144			236,269
Deferred tax liabilities		15,069			16,940
Deferred gain on sale of hotels		84,341			101,852
Total liabilities		1,652,666			2,003,258
Noncontrolling interests in SHR’s operating partnership		4,191			2,717
Equity:
SHR’s 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 and $126,527 in the aggregate)		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 and $129,231 in the aggregate)		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 and $161,539 in the aggregate)		138,940			138,940
Common shares ($0.01 par value; 250,000,000 common shares authorized; 151,277,509 and 75,253,252 common shares issued and outstanding)		1,512			752
Additional paid-in capital		1,554,347			1,233,856
Accumulated deficit		(1,026,502	)		(954,208	)
Accumulated other comprehensive loss		(96,784	)		(69,341	)
Total SHR’s shareholders’ equity		790,494			568,980
Noncontrolling interests in consolidated affiliates		22,687			23,188
Total equity		813,181			592,168
Total liabilities and equity	$	2,470,038		$	2,598,143

7

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

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. The following hotels were sold during 2009 (in thousands):

Hotel	Date Sold	Net Sales Proceeds
Renaissance Paris Hotel Le Parc Trocadero	December 21, 2009	$	50,275
Four Seasons Mexico City	October 29, 2009	$	52,156

The following is a summary of income (loss) from discontinued operations for the three and six months ended June 30, 2010 and 2009 (in thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2010		2009			2010			2009
Hotel operating revenues	$	—	$	7,224		$	—		$	15,783
Operating costs and expenses		—		6,918			(21	)		13,830
Depreciation and amortization		—		1,537			—			3,061
Total operating costs and expenses		—		8,455			(21	)		16,891
Operating (loss) income		—		(1,231	)		21			(1,108	)
Interest income		—		1			—			3
Foreign currency exchange gain (loss)		—		31			(118	)		105
Income tax benefit		—		8			—			1,440
Gain on sale (a)		1,849		—			1,237			—
Income (loss) from discontinued operations	$	1,849	$	(1,191	)	$	1,140		$	440

(a) In the second quarter of 2010, we agreed to accept payment of $1,850,000 to settle the remaining obligation owed to us by the purchaser of the Hyatt Regency New Orleans hotel, which was sold in December 2007. We recognized a $1,850,000 gain on sale of the hotel, which we had previously deferred.

8

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

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 June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Total revenues (100%)	$	30,748		$	30,006		$	54,484		$	58,198
Property EBITDA (100%)	$	9,724		$	9,441		$	15,278		$	17,947
Equity in earnings (losses) of joint venture (SHR 45% ownership)
Property EBITDA	$	4,376		$	4,248		$	6,875		$	8,076
Depreciation and amortization		(1,997	)		(1,922	)		(3,988	)		(3,825	)
Interest expense		(1,897	)		(1,970	)		(3,730	)		(4,031	)
Other (expenses) income, net		(85	)		41			(148	)		(142	)
Income taxes		(154	)		(13	)		383			200
Equity in earnings (losses) of joint venture	$	243		$	384		$	(608	)	$	278
EBITDA Contribution from investment in Hotel del Coronado
Equity in earnings (losses) of joint venture	$	243		$	384		$	(608	)	$	278
Depreciation and amortization		1,997			1,922			3,988			3,825
Interest expense		1,897			1,970			3,730			4,031
Income taxes		154			13			(383	)		(200	)
EBITDA Contribution for investment in Hotel del Coronado	$	4,291		$	4,289		$	6,727		$	7,934
FFO Contribution from investment in Hotel del Coronado
Equity in earnings (losses) of joint venture	$	243		$	384		$	(608	)	$	278
Depreciation and amortization		1,997			1,922			3,988			3,825
FFO Contribution for investment in Hotel del Coronado	$	2,240		$	2,306		$	3,380		$	4,103

Debt	Interest Rate		Spread over LIBOR		Loan Amount			Maturity
CMBS Mortgage and Mezzanine	2.43	%	208	bp	$	610,000		January 2011
Revolving Credit Facility	2.85	%	250	bp		18,500		January 2011
						628,500
Cash and cash equivalents						(17,036	)
Net Debt					$	611,464
Cap	Effective Date		LIBOR Cap Rate		Notional Amount			Maturity
CMBS Mortgage and Mezzanine Loan and Revolving Credit Facility Cap	January 2010		2.0	%	$	630,000		January 2011

9

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

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.

	Three Months Ended June 30,						Six Months Ended June 30,
North Beach Venture	2010			2009			2010			2009
Hotel condominium cost of sales (100%)	$	—		$	—		$	—		$	(4	)
SHR’s 45% share
Hotel condominium cost of sales	$	—		$	—		$	—		$	(2	)
Interest expense		(11	)		—			(22	)		—
Other income, net		12			9			13			13
SHR’s share of net income (loss)	$	1		$	9		$	(9	)	$	11
Net income (loss)	$	1		$	9		$	(9	)	$	11
Interest expense		11			—			22			—
EBITDA Contribution for investment in North Beach Venture	$	12		$	9		$	13		$	11
FFO Contribution for investment in North Beach Venture	$	1		$	9		$	(9	)	$	11
	Three Months Ended June 30,						Six Months Ended June 30,
RCPM	2010			2009			2010			2009
SHR’s 31% share
Sales	$	1,042		$	355		$	2,131		$	1,398
EBITDA Contribution for investment in RCPM	$	144		$	(57	)	$	429		$	337
FFO Contribution for investment in RCPM	$	97		$	(45	)	$	292		$	234
SHR’s share of total residential activity:
Sales	$	1,042		$	355		$	2,131		$	1,398
EBITDA	$	156		$	(48	)	$	442		$	348
FFO	$	98		$	(36	)	$	283		$	245

10

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

Leasehold Information

(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Paris Marriott Champs Elysees:
Property EBITDA	$	5,670		$	4,645		$	9,075		$	7,252
Revenue (a)	$	5,670		$	4,645		$	9,075		$	7,252
Lease Expense		(2,793	)		(2,985	)		(5,839	)		(5,847	)
Less: Deferred Gain on Sale Leaseback		(1,068	)		(1,146	)		(2,233	)		(2,246	)
Adjusted Lease Expense		(3,861	)		(4,131	)		(8,072	)		(8,093	)
EBITDA Contribution from Leasehold	$	1,809		$	514		$	1,003		$	(841	)
Marriott Hamburg:
Property EBITDA	$	1,356		$	1,422		$	2,750		$	2,775
Revenue (a)	$	1,088		$	1,169		$	2,275		$	2,289
Lease Expense		(1,095	)		(1,174	)		(2,290	)		(2,278	)
Less: Deferred Gain on Sale Leaseback		(49	)		(53	)		(103	)		(104	)
Adjusted Lease Expense		(1,144	)		(1,227	)		(2,393	)		(2,382	)
EBITDA Contribution from Leasehold	$	(56	)	$	(58	)	$	(118	)	$	(93	)
Total Leaseholds:
Property EBITDA	$	7,026		$	6,067		$	11,825		$	10,027
Revenue (a)	$	6,758		$	5,814		$	11,350		$	9,541
Lease Expense		(3,888	)		(4,159	)		(8,129	)		(8,125	)
Less: Deferred Gain on Sale Leaseback		(1,117	)		(1,199	)		(2,336	)		(2,350	)
Adjusted Lease Expense		(5,005	)		(5,358	)	��	(10,465	)		(10,475	)
EBITDA Contribution from Leaseholds	$	1,753		$	456		$	885		$	(934	)

Security Deposits (b):	June 30, 2010		December 31, 2009
Paris Marriott Champs Elysees	$	11,423	$	10,720
Marriott Hamburg		6,115		7,158
Total	$	17,538	$	17,878

(a) For the three and six months ended June 30, 2010 and 2009, Revenue for the Paris Marriott Champs Elysees represents Property EBITDA. For the three and six months ended June 30, 2010 and 2009, 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
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

Non-GAAP Financial Measures

In addition to REIT hotel income, five 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); and Comparable EBITDA. A reconciliation of these measures to net loss attributable to SHR 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 income or loss on income attributable to convertible noncontrolling 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 loss attributable to SHR common shareholders excluding: (i) interest expense, (ii) income taxes, 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 taxes 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 noncontrolling interests of our operating partnership into our common stock and includes preferred dividends. We believe this treatment of noncontrolling interests provides more useful information for management and our investors and appropriately considers our current capital structure. We also present Comparable EBITDA, which eliminates the effect of realizing deferred gains on our sale leasebacks, as well as 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 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 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, 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, and Comparable EBITDA should not be considered as an alternative measure of our net loss or operating performance. FFO, FFO - Fully Diluted, Comparable FFO, 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, and Comparable EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures, when viewed individually, are not necessarily a better indicator of any trend as compared to comparable GAAP measures such as net loss attributable to SHR common shareholders. In addition, you should be aware that adverse economic and market conditions might negatively impact our cash flow. We have provided a quantitative reconciliation of FFO, FFO - Fully Diluted, Comparable FFO, EBITDA, and Comparable EBITDA to the most directly comparable GAAP financial performance measure, which is net loss attributable to SHR common shareholders.

12

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

Reconciliation of Net Loss Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA

(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Net loss attributable to SHR common shareholders	$	(47,410	)	$	(85,982	)	$	(87,701	)	$	(129,172	)
Depreciation and amortization - continuing operations		33,683			33,674			69,540			66,253
Depreciation and amortization - discontinued operations		—			1,537			—			3,061
Interest expense		27,016			26,259			51,708			50,225
Income taxes - continuing operations		1,413			690			635			2,222
Income taxes - discontinued operations		—			(8	)		—			(1,440	)
Noncontrolling interests		(245	)		(1,007	)		(687	)		(1,453	)
Adjustments from consolidated affiliates		(2,136	)		(2,741	)		(3,618	)		(4,305	)
Adjustments from unconsolidated affiliates		4,156			3,925			7,558			7,824
Preferred shareholder dividends		7,722			7,722			15,443			15,443
EBITDA		24,199			(15,931	)		52,878			8,658
Realized portion of deferred gain on sale leasebacks		(1,117	)		(1,199	)		(2,336	)		(2,350	)
Loss on sale of assets - continuing operations		—			7			—			5
Gain on sale of assets - discontinued operations		(1,849	)		—			(1,237	)		—
Impairment losses and other charges		—			49,755			—			50,214
Impairment losses and other charges - adjustments from consolidated affiliates		—			(169	)		—			(169	)
Loss on early extinguishment of debt		886			—			886			883
Loss on early termination of derivative financial instruments		18,263			—			18,263			—
Foreign currency exchange (gain) loss - continuing operations (a)		(5,256	)		1,140			(11,442	)		(801	)
Foreign currency exchange (gain) loss - discontinued operations (a)		—			(31	)		118			(105	)
Comparable EBITDA	$	35,126		$	33,572		$	57,130		$	56,335

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

13

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

Reconciliation of Net Loss Attributable to SHR Common Shareholders to

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

(in thousands, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Net loss attributable to SHR common shareholders	$	(47,410	)	$	(85,982	)	$	(87,701	)	$	(129,172	)
Depreciation and amortization - continuing operations		33,683			33,674			69,540			66,253
Depreciation and amortization - discontinued operations		—			1,537			—			3,061
Corporate depreciation		(306	)		(304	)		(610	)		(608	)
Loss on sale of assets - continuing operations		—			7			—			5
Gain on sale of assets - discontinued operations		(1,849	)		—			(1,237	)		—
Realized portion of deferred gain on sale leasebacks		(1,117	)		(1,199	)		(2,336	)		(2,350	)
Deferred tax expense on realized portion of deferred gain on sale leasebacks		333			358			696			701
Noncontrolling interests adjustments		(227	)		(472	)		(707	)		(929	)
Adjustments from consolidated affiliates		(1,336	)		(1,860	)		(3,302	)		(3,692	)
Adjustments from unconsolidated affiliates		2,048			1,954			4,052			3,889
FFO		(16,181	)		(52,287	)		(21,605	)		(62,842	)
Convertible noncontrolling interests		(18	)		(535	)		20			(524	)
FFO - Fully Diluted		(16,199	)		(52,822	)		(21,585	)		(63,366	)
Impairment losses and other charges		—			49,755			—			50,214
Impairment losses and other charges - adjustments from consolidated affiliates		—			(169	)		—			(169	)
Non-cash mark to market of interest rate swaps		4,181			—			4,181			—
Loss on early extinguishment of debt		886			—			886			883
Loss on early termination of derivative financial instruments		18,263			—			18,263			—
Foreign currency exchange (gain) loss, net of tax (a) - continuing operations		(5,263	)		792			(11,456	)		(1,311	)
Foreign currency exchange (gain) loss (a) - discontinued operations		—			(31	)		118			(105	)
Comparable FFO	$	1,868		$	(2,475	)	$	(9,593	)	$	(13,854	)
Comparable FFO per diluted share	$	0.02		$	(0.03	)	$	(0.10	)	$	(0.18	)
Weighted average diluted shares		113,174			75,381			93,706			75,166

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

14

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

Debt Summary

(dollars in thousands)

Debt	Interest Rate	Spread (a)	Loan Amount		Maturity (b)
Bank credit facility	4.10%	375 bp	$	55,000	March 2011
Fairmont Scottsdale	0.91%	56 bp		180,000	September 2011
InterContinental Chicago	1.41%	106 bp		121,000	October 2011
InterContinental Miami	1.08%	73 bp		90,000	October 2011
Loews Santa Monica Beach Hotel	0.98%	63 bp		118,250	March 2012
Ritz-Carlton Half Moon Bay	1.02%	67 bp		76,500	March 2012
Hyatt Regency La Jolla	1.35%	100 bp		97,500	September 2012
Marriott London Grosvenor Square (c)	1.83%	110 bp (c)		113,865	October 2013
InterContinental Prague (d)	1.97%	120 bp (d)		124,247	March 2015
Westin St. Francis	6.09%	Fixed		220,000	June 2017
Fairmont Chicago	6.09%	Fixed		97,750	June 2017
			$	1,294,112

(a) Spread over LIBOR (0.35% at June 30, 2010).

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

(c) Principal balance of £76,220,000 at June 30, 2010. Spread over three-month GBP LIBOR (0.73% at June 30, 2010).

(d) Principal balance of €101,600,000 at June 30, 2010. Spread over three-month EURIBOR (0.77% at June 30, 2010). The spread increases to 180 basis points in March 2012 through the maturity date.

Domestic and European Interest Rate Swaps

	Fixed Pay Rate
	Against LIBOR			Notional
Swap Effective Date	Current	Future		Amount		Maturity
March 2009	1.22%	1.22	%	$	50,000	August 2011
February 2010	0.45%	0.45	%		50,000	December 2010
February 2010	0.45%	4.59	% (e)		75,000	April 2012
February 2010	0.45%	4.84	% (e)		100,000	July 2012
February 2010	0.45%	5.50	% (e)		75,000	June 2013
February 2010	0.45%	5.42	% (e)		50,000	August 2013
February 2010	0.45%	4.90	% (e)		100,000	September 2014
February 2010	0.45%	4.96	% (e)		100,000	December 2014
April 2010	5.42%	5.42	%		75,000	April 2015
	1.06%	4.43	%	$	675,000
	Fixed Pay Rate
	Against GBP LIBOR			Notional
Swap Effective Date	Current	Future		Amount		Maturity
October 2007	3.22%	5.72	% (e)	£	76,220	October 2013

Swap Effective Date	Fixed Pay Rate Against EURIBOR	Notional Amount		Maturity
March 2010	3.32%	€	101,600	March 2015

(e) The fixed pay rate against LIBOR increases in December 2010 through maturity.

The fixed pay rate against GBP LIBOR increases in January 2011 through maturity.

Forward-Starting Interest Rate Swaps

	Fixed Pay Rate	Notional
Swap Effective Date	Against LIBOR	Amount		Maturity
December 2010	5.23%	$	100,000	December 2015
February 2011	5.27%		100,000	February 2016
		$	200,000

At June 30, 2010, future scheduled debt principal payments (including non-conditional extension options) are as follows:

Years ending December 31,	Amount
2010 (remainder)	$	1,539
2011		449,077
2012		307,540
2013		118,909
2014		13,297
Thereafter		403,750
	$	1,294,112
Percent of fixed rate debt including U.S. and European swaps		95.1	%
Weighted average interest rate including U.S. and European swaps (f)		3.44	%
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year)		4.37

(f) Excludes the amortization of deferred financing costs and the amortization of the interest rate swap costs.

15

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	June 30, 2010

Portfolio Data

Portfolio at June 30, 2010

(dollars in thousands)

Hotel	Location	Number of Rooms	% of Total Rooms		% of QTR June 2010 Property EBITDA		QTR June  2010 Property EBITDA
United States:
Westin St. Francis	San Francisco, CA	1,195	15	%	10	%	$	4,891
InterContinental Chicago (a)	Chicago, IL	792	10	%	12	%		6,107
Hotel del Coronado (b)	Coronado, CA	757	10	%	9	%		4,376
Fairmont Chicago	Chicago, IL	687	9	%	7	%		3,642
Fairmont Scottsdale	Scottsdale, AZ	649	8	%	6	%		2,803
InterContinental Miami	Miami, FL	641	8	%	4	%		1,815
Hyatt Regency La Jolla (a)	La Jolla, CA	419	5	%	3	%		1,371
Ritz-Carlton Laguna Niguel	Dana Point, CA	396	5	%	4	%		1,830
Marriott Lincolnshire Resort	Lincolnshire, IL	389	5	%	-1	%		(267	)
Loews Santa Monica Beach Hotel	Santa Monica, CA	342	4	%	6	%		2,999
Ritz-Carlton Half Moon Bay	Half Moon Bay, CA	261	3	%	5	%		2,444
Four Seasons Washington, D.C.	Washington, D.C.	222	3	%	9	%		4,513
Total United States		6,750	85	%	74	%		36,524
Mexican:
Four Seasons Punta Mita Resort	Punta Mita, Mexico	173	2	%	4	%		2,035
Total Mexican		173	2	%	4	%		2,035
Total North American		6,923	87	%	77	%		38,559
European:
InterContinental Prague	Prague, Czech Republic	372	5	%	5	%		2,456
Marriott Hamburg (c)	Hamburg, Germany	278	3	%	N/A			N/A
Marriott London Grosvenor Square	London, England	237	3	%	7	%		3,350
Paris Marriott Champs Elysees	Paris, France	192	2	%	10	%		5,670
Total European		1,079	13	%	22	%		11,476
		8,002	100	%	100	%	$	50,035

(a) We own 51% controlling interests in the entities that own the InterContinental Chicago and Hyatt Regency La Jolla hotels and consolidate these hotels for reporting purposes.

(b) We own 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 (losses) 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.

16

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Four Quarters Ended June 30, 2010

Seasonality by Geographic Region

(dollars in thousands)

Same store property revenues have been adjusted to show hotel performance on a comparable quarter-over-quarter basis. Adjustments include (i) exclusion of Four Seasons Mexico City and Renaissance Paris Hotel Le Parc Trocadero 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 June 30, 2010)

Same store property revenues - 11 Properties and 5,993 Rooms

	Three Months Ended
	September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			Total
Same store property revenues	$	143,755		$	146,928		$	133,515		$	159,274		$	583,472
Same store seasonality %		24.6	%		25.2	%		22.9	%		27.3	%		100.0	%

Mexican Hotel (as of June 30, 2010)

Same store property revenues - 1 Property and 173 Rooms

	Three Months Ended
	September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			Total
Same store property revenues	$	5,604		$	12,295		$	14,093		$	8,515		$	40,507
Same store seasonality %		13.8	%		30.4	%		34.8	%		21.0	%		100.0	%

North American Hotels (as of June 30, 2010)

Same store property revenues - 12 Properties and 6,166 Rooms

	Three Months Ended
	September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			Total
Same store property revenues	$	149,359		$	159,223		$	147,608		$	167,789		$	623,979
Same store seasonality %		23.9	%		25.5	%		23.7	%		26.9	%		100.0	%

European Hotels (as of June 30, 2010)

Same store property revenues - 4 Properties and 1,079 Rooms

	Three Months Ended
	September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			Total
Same store property revenues	$	33,486		$	33,281		$	24,716		$	32,348		$	123,831
Same store seasonality %		27.0	%		26.9	%		20.0	%		26.1	%		100.0	%

17

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

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 Four Seasons Mexico City and Renaissance Paris Hotel Le Parc Trocadero as these properties results of operations were reclassified to discontinued operations for the periods presented and (iii) presentation of the hotels without regard to either ownership structure or leaseholds.

United States Hotels (as of June 30, 2010)

11 Properties

5,993 Rooms

	Three Months Ended June 30,								Six Months Ended June 30,
	2010			2009			Change		2010			2009			Change
Average Daily Rate	$	211.88		$	205.00		3.4	%	$	210.33		$	212.93		-1.2	%
Average Occupancy		71.6	%		69.4	%	2.2	pts		66.2	%		64.2	%	2.0	pts
RevPAR	$	151.81		$	142.20		6.8	%	$	139.29		$	136.63		1.9	%
Total RevPAR	$	293.52		$	278.63		5.3	%	$	271.18		$	268.30		1.1	%
Property EBITDA Margin		20.2	%		19.8	%	0.4	pts		16.5	%		17.0	%	(0.5	) pts

Mexican Hotel (as of June 30, 2010)

1 Property

173 Rooms

	Three Months Ended June 30,								Six Months Ended June 30,
	2010			2009			Change		2010			2009			Change
Average Daily Rate	$	614.30		$	762.76		-19.5	%	$	722.50		$	819.55		-11.8	%
Average Occupancy		47.2	%		32.2	%	15.0	pts		55.3	%		50.1	%	5.2	pts
RevPAR	$	290.08		$	245.31		18.3	%	$	399.21		$	410.86		-2.8	%
Total RevPAR	$	540.85		$	458.41		18.0	%	$	721.99		$	701.27		3.0	%
Property EBITDA Margin		23.9	%		21.8	%	2.1	pts		36.6	%		39.1	%	(2.5	) pts

North American Hotels (as of June 30, 2010)

12 Properties

6,166 Rooms

	Three Months Ended June 30,								Six Months Ended June 30,
	2010			2009			Change		2010			2009			Change
Average Daily Rate	$	219.43		$	212.41		3.3	%	$	222.43		$	226.37		-1.7	%
Average Occupancy		71.0	%		68.3	%	2.7	pts		65.9	%		63.8	%	2.1	pts
RevPAR	$	155.71		$	145.11		7.3	%	$	146.61		$	144.36		1.6	%
Total RevPAR	$	300.49		$	283.70		5.9	%	$	283.89		$	280.50		1.2	%
Property EBITDA Margin		20.4	%		19.9	%	0.5	pts		18.0	%		18.5	%	(0.5	) pts

European Hotels (as of June 30, 2010)

4 Properties

1,079 Rooms

	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2010			2009			Change		2010			2009			Change
Average Daily Rate	$	301.85		$	303.37		-0.5	%	$	291.99		$	282.74		3.3	%
Average Occupancy		79.2	%		75.3	%	3.9	pts		70.9	%		67.4	%	3.5	pts
RevPAR	$	239.16		$	228.53		4.7	%	$	207.02		$	190.70		8.6	%
Total RevPAR	$	329.44		$	314.16		4.9	%	$	292.18		$	272.35		7.3	%
Property EBITDA Margin		39.7	%		39.1	%	0.6	pts		36.9	%		35.6	%	1.3	pts

18

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

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 and six months ended June 30, 2010 and 2009. Property EBITDA reflects property net operating income plus depreciation and amortization.

	Three Months Ended June 30,								Six Months Ended June 30,
UNITED STATES HOTELS:	2010			2009			Change		2010			2009			Change
FAIRMONT CHICAGO
Selected Financial Information:
Total revenues	$	15,484		$	14,881		4.1	%	$	22,176		$	23,855		(7.0	)%
Property EBITDA	$	3,642		$	3,571		2.0	%	$	913		$	1,991		(54.1	)%
Selected Operating Information:
Rooms		687			687		—			687			687		—
Average occupancy		66.6	%		64.0	%	2.6	pts		50.9	%		55.4	%	(4.5	) pts
ADR	$	217.68		$	209.69		3.8	%	$	199.63		$	194.03		2.9	%
RevPAR	$	145.06		$	134.13		8.1	%	$	101.67		$	107.46		(5.4	)%
Total RevPAR	$	247.67		$	238.04		4.0	%	$	178.34		$	191.84		(7.0	)%
FAIRMONT SCOTTSDALE
Selected Financial Information:
Total revenues	$	19,031		$	16,723		13.8	%	$	42,636		$	39,452		8.1	%
Property EBITDA	$	2,803		$	1,662		68.7	%	$	8,639		$	7,135		21.1	%
Selected Operating Information:
Rooms		649			649		—			649			649		—
Average occupancy		71.4	%		64.0	%	7.4	pts		76.4	%		66.6	%	9.8	pts
ADR	$	188.97		$	186.36		1.4	%	$	213.41		$	221.16		(3.5	)%
RevPAR	$	134.93		$	119.28		13.1	%	$	163.02		$	147.29		10.7	%
Total RevPAR	$	322.24		$	283.15		13.8	%	$	362.96		$	335.85		8.1	%
FOUR SEASONS WASHINGTON, D.C.
Selected Financial Information:
Total revenues	$	16,952		$	16,027		5.8	%	$	28,376		$	29,973		(5.3	)%
Property EBITDA	$	4,513		$	4,320		4.5	%	$	5,753		$	7,027		(18.1	)%
Selected Operating Information:
Rooms		222			222		—			222			222		—
Average occupancy		79.9	%		76.2	%	3.7	pts		71.5	%		68.7	%	2.8	pts
ADR	$	549.99		$	524.49		4.9	%	$	504.43		$	548.33		(8.0	)%
RevPAR	$	439.35		$	399.84		9.9	%	$	360.58		$	376.65		(4.3	)%
Total RevPAR	$	839.15		$	793.34		5.8	%	$	706.19		$	745.93		(5.3	)%
HOTEL DEL CORONADO
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 45%):
Total revenues	$	30,748		$	30,006		2.5	%	$	54,484		$	58,198		(6.4	)%
Property EBITDA	$	9,724		$	9,441		3.0	%	$	15,278		$	17,947		(14.9	)%
Selected Operating Information:
Rooms		757			757		—			757			757		—
Average occupancy		66.9	%		61.6	%	5.3	pts		60.1	%		59.4	%	0.7	pts
ADR	$	299.87		$	327.35		(8.4	)%	$	302.74		$	325.26		(6.9	)%
RevPAR	$	200.50		$	201.58		(0.5	)%	$	182.01		$	193.31		(5.8	)%
Total RevPAR	$	446.35		$	435.57		2.5	%	$	397.64		$	424.75		(6.4	)%

19

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

	Three Months Ended June 30,								Six Months Ended June 30,
	2010			2009			Change		2010			2009			Change
HYATT REGENCY LA JOLLA
Selected Financial Information:
Total revenues	$	7,973		$	8,229		(3.1	)%	$	14,981		$	17,113		(12.5	)%
Property EBITDA	$	1,371		$	1,745		(21.4	)%	$	1,992		$	3,209		(37.9	)%
Selected Operating Information:
Rooms		419			419		—			419			419		—
Average occupancy		74.9	%		77.1	%	(2.2	) pts		70.8	%		73.7	%	(2.9	) pts
ADR	$	151.53		$	148.12		2.3	%	$	147.84		$	154.96		(4.6	)%
RevPAR	$	113.53		$	114.21		(0.6	)%	$	104.73		$	114.23		(8.3	)%
Total RevPAR	$	209.10		$	215.81		(3.1	)%	$	197.54		$	225.65		(12.5	)%
INTERCONTINENTAL CHICAGO
Selected Financial Information:
Total revenues	$	18,641		$	18,476		0.9	%	$	26,636		$	29,618		(10.1	)%
Property EBITDA	$	6,107		$	6,849		(10.8	)%	$	5,400		$	7,418		(27.2	)%
Selected Operating Information:
Rooms		792			792		—			792			792		—
Average occupancy		81.2	%		82.5	%	(1.3	) pts		65.1	%		73.4	%	(8.3	) pts
ADR	$	194.51		$	185.74		4.7	%	$	172.90		$	169.48		2.0	%
RevPAR	$	157.99		$	153.28		3.1	%	$	112.47		$	124.34		(9.5	)%
Total RevPAR	$	258.64		$	256.35		0.9	%	$	185.81		$	206.61		(10.1	)%
INTERCONTINENTAL MIAMI
Selected Financial Information:
Total revenues	$	10,900		$	10,858		0.4	%	$	27,804		$	25,164		10.5	%
Property EBITDA	$	1,815		$	2,005		(9.5	)%	$	8,108		$	7,135		13.6	%
Selected Operating Information:
Rooms		641			641		—			641			641		—
Average occupancy		64.0	%		59.5	%	4.5	pts		72.0	%		62.6	%	9.4	pts
ADR	$	151.25		$	170.70		(11.4	)%	$	184.96		$	199.71		(7.4	)%
RevPAR	$	96.81		$	101.57		(4.7	)%	$	133.12		$	124.97		6.5	%
Total RevPAR	$	186.86		$	186.14		0.4	%	$	239.65		$	216.89		10.5	%
LOEWS SANTA MONICA BEACH HOTEL
Selected Financial Information:
Total revenues	$	11,319		$	9,808		15.4	%	$	21,072		$	18,463		14.1	%
Property EBITDA	$	2,999		$	2,221		35.0	%	$	4,996		$	3,507		42.5	%
Selected Operating Information:
Rooms		342			342		—			342			342		—
Average occupancy		89.8	%		80.7	%	9.1	pts		85.3	%		76.1	%	9.2	pts
ADR	$	258.46		$	248.87		3.9	%	$	256.08		$	254.48		0.6	%
RevPAR	$	232.08		$	200.83		15.6	%	$	218.32		$	193.71		12.7	%
Total RevPAR	$	363.70		$	315.16		15.4	%	$	340.40		$	298.25		14.1	%
MARRIOTT LINCOLNSHIRE RESORT
Selected Financial Information:
Total revenues	$	6,950		$	7,938		(12.4	)%	$	11,910		$	13,746		(13.4	)%
Property EBITDA	$	(267	)	$	1,180		(122.6	)%	$	(1,319	)	$	955		(238.1	)%
Selected Operating Information:
Rooms		389			389		—			389			389		—
Average occupancy		51.6	%		51.4	%	0.2	pts		43.3	%		43.8	%	(0.5	) pts
ADR	$	110.14		$	120.25		(8.4	)%	$	110.09		$	119.41		(7.8	)%
RevPAR	$	56.86		$	61.82		(8.0	)%	$	47.66		$	52.33		(8.9	)%
Total RevPAR	$	212.70		$	242.94		(12.4	)%	$	182.24		$	210.33		(13.4	)%

20

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

	Three Months Ended June 30,								Six Months Ended June 30,
	2010			2009			Change		2010			2009			Change
RITZ-CARLTON HALF MOON BAY
Selected Financial Information:
Total revenues	$	13,530		$	11,629		16.3	%	$	23,769		$	20,356		16.8	%
Property EBITDA	$	2,444		$	1,376		77.6	%	$	2,997		$	1,127		165.9	%
Selected Operating Information:
Rooms		261			261		—			261			261		—
Average occupancy		69.5	%		56.5	%	13.0	pts		65.5	%		50.0	%	15.5	pts
ADR	$	328.76		$	312.51		5.2	%	$	301.65		$	296.92		1.6	%
RevPAR	$	228.58		$	176.55		29.5	%	$	197.72		$	148.46		33.2	%
Total RevPAR	$	569.68		$	489.62		16.4	%	$	503.14		$	430.89		16.8	%
RITZ-CARLTON LAGUNA NIGUEL
Selected Financial Information:
Total revenues	$	12,524		$	12,070		3.8	%	$	24,436		$	24,975		(2.2	)%
Property EBITDA	$	1,830		$	1,868		(2.0	)%	$	3,493		$	3,835		(8.9	)%
Selected Operating Information:
Rooms		396			396		—			396			396		—
Average occupancy		46.4	%		43.5	%	2.9	pts		47.9	%		45.4	%	2.5	pts
ADR	$	335.70		$	334.26		0.4	%	$	322.70		$	344.13		(6.2	)%
RevPAR	$	155.90		$	145.42		7.2	%	$	154.64		$	156.31		(1.1	)%
Total RevPAR	$	347.55		$	334.95		3.8	%	$	340.92		$	348.44		(2.2	)%
WESTIN ST. FRANCIS
Selected Financial Information:
Total revenues	$	25,970		$	24,558		5.7	%	$	48,992		$	46,958		4.3	%
Property EBITDA	$	4,891		$	3,181		53.8	%	$	7,474		$	5,840		28.0	%
Selected Operating Information:
Rooms		1,195			1,195		—			1,195			1,195		—
Average occupancy		79.4	%		81.5	%	(2.1	) pts		72.3	%		70.5	%	1.8	pts
ADR	$	173.48		$	165.05		5.1	%	$	176.16		$	177.74		(0.9	)%
RevPAR	$	137.69		$	134.50		2.4	%	$	127.34		$	125.33		1.6	%
Total RevPAR	$	238.81		$	225.83		5.7	%	$	226.51		$	217.10		4.3	%

21

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

	Three Months Ended June 30,								Six Months Ended June 30,
MEXICAN HOTEL:	2010			2009			Change		2010			2009			Change
FOUR SEASONS PUNTA MITA RESORT
Selected Financial Information:
Total revenues	$	8,515		$	7,217		18.0	%	$	22,608		$	21,959		3.0	%
Property EBITDA	$	2,035		$	1,571		29.5	%	$	8,265		$	8,596		(3.9	)%
Selected Operating Information:
Rooms		173			173		—			173			173		—
Average occupancy		47.2	%		32.2	%	15.0	pts		55.3	%		50.1	%	5.2	pts
ADR	$	614.30		$	762.76		(19.5	)%	$	722.50		$	819.55		(11.8	)%
RevPAR	$	290.08		$	245.31		18.3	%	$	399.21		$	410.86		(2.8	)%
Total RevPAR	$	540.85		$	458.41		18.0	%	$	721.99		$	701.27		3.0	%

22

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

	Three Months Ended June 30,								Six Months Ended June 30,
EUROPEAN HOTELS:	2010			2009			Change		2010			2009			Change
INTERCONTINENTAL PRAGUE
Selected Financial Information:
Total revenues	$	7,226		$	7,260		(0.5	)%	$	12,386		$	13,238		(6.4	)%
Property EBITDA	$	2,456		$	2,764		(11.1	)%	$	3,361		$	4,138		(18.8	)%
Selected Operating Information:
Rooms		372			372		—			372			372		—
Average Occupancy		68.7	%		56.1	%	12.6	pts		57.5	%		51.7	%	5.8	pts
ADR	$	176.62		$	225.18		(21.6	)%	$	172.36		$	205.48		(16.1	)%
RevPAR	$	121.29		$	126.31		(4.0	)%	$	99.05		$	106.23		(6.8	)%
Total RevPAR	$	213.46		$	214.46		(0.5	)%	$	183.95		$	196.61		(6.4	)%
MARRIOTT HAMBURG
Selected Financial Information:
Total revenues	$	5,258		$	5,034		4.4	%	$	9,370		$	9,671		(3.1	)%
Property EBITDA	$	1,356		$	1,422		(4.6	)%	$	2,750		$	2,775		(0.9	)%
Selected Operating Information:
Rooms		278			278		—			278			278		—
Average occupancy		83.7	%		85.1	%	(1.4	) pts		74.3	%		81.2	%	(6.9	) pts
ADR	$	184.24		$	163.53		12.7	%	$	181.14		$	161.42		12.2	%
RevPAR	$	154.17		$	139.23		10.7	%	$	134.59		$	131.08		2.7	%
Total RevPAR	$	207.85		$	198.99		4.4	%	$	186.21		$	192.20		(3.1	)%
MARRIOTT LONDON GROSVENOR SQUARE
Selected Financial Information:
Total revenues	$	8,119		$	7,787		4.3	%	$	15,202		$	12,752		19.2	%
Property EBITDA	$	3,350		$	3,232		3.7	%	$	5,878		$	4,763		23.4	%
Selected Operating Information:
Rooms		237			237		—			237			237		—
Average occupancy		81.3	%		86.4	%	(5.1	) pts		78.7	%		71.1	%	7.6	pts
ADR	$	333.52		$	295.95		12.7	%	$	319.50		$	288.62		10.7	%
RevPAR	$	271.03		$	255.67		6.0	%	$	251.59		$	205.24		22.6	%
Total RevPAR	$	376.45		$	361.04		4.3	%	$	354.39		$	297.27		19.2	%
PARIS MARRIOTT CHAMPS ELYSEES
Selected Financial Information:
Total revenues	$	11,745		$	10,766		9.1	%	$	20,105		$	17,528		14.7	%
Property EBITDA	$	5,670		$	4,645		22.1	%	$	9,075		$	7,252		25.1	%
Selected Operating Information:
Rooms		192			192		—			192			192		—
Average occupancy		90.7	%		84.7	%	6.0	pts		82.3	%		73.5	%	8.8	pts
ADR	$	607.49		$	616.44		(1.5	)%	$	566.15		$	575.00		(1.5	)%
RevPAR	$	551.23		$	522.38		5.5	%	$	466.07		$	422.74		10.2	%
Total RevPAR	$	672.20		$	616.19		9.1	%	$	578.54		$	504.38		14.7	%

23

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010 and 2009

Reconciliation of Property EBITDA to EBITDA

(in thousands)

	Three Months Ended June 30,											Six Months Ended June 30,
	2010						2009					2010						2009
Hotel	Property EBITDA			EBITDA			Property EBITDA		EBITDA			Property EBITDA			EBITDA			Property EBITDA		EBITDA
Fairmont Chicago	$	3,642		$	3,642		$	3,571	$	3,571		$	913		$	913		$	1,991	$	1,991
Fairmont Scottsdale		2,803			2,803			1,662		1,662			8,639			8,639			7,135		7,135
Four Seasons Washington, D.C.		4,513			4,513			4,320		4,320			5,753			5,753			7,027		7,027
Hotel del Coronado (a)		9,724			—			9,441		—			15,278			—			17,947		—
Hyatt Regency La Jolla		1,371			1,371			1,745		1,745			1,992			1,992			3,209		3,209
InterContinental Chicago		6,107			6,107			6,849		6,849			5,400			5,400			7,418		7,418
InterContinental Miami		1,815			1,815			2,005		2,005			8,108			8,108			7,135		7,135
Loews Santa Monica Beach Hotel		2,999			2,999			2,221		2,221			4,996			4,996			3,507		3,507
Marriott Lincolnshire Resort		(267	)		(267	)		1,180		1,180			(1,319	)		(1,319	)		955		955
Ritz-Carlton Half Moon Bay		2,444			2,444			1,376		1,376			2,997			2,997			1,127		1,127
Ritz-Carlton Laguna Niguel		1,830			1,830			1,868		1,868			3,493			3,493			3,835		3,835
Westin St. Francis		4,891			4,891			3,181		3,181			7,474			7,474			5,840		5,840
Four Seasons Punta Mita Resort		2,035			2,035			1,571		1,571			8,265			8,265			8,596		8,596
InterContinental Prague		2,456			2,456			2,764		2,764			3,361			3,361			4,138		4,138
Marriott Hamburg (b)		1,356			(7	)		1,422		(5	)		2,750			(15	)		2,775		13
Marriott London Grosvenor Square		3,350			3,350			3,232		3,232			5,878			5,878			4,763		4,763
Paris Marriott Champs Elysees (c)		5,670			2,878			4,645		1,660			9,075			3,236			7,252		1,405
	$	56,739		$	42,860		$	53,053	$	39,200		$	93,053		$	69,171		$	94,650	$	68,094
Adjustments:
Impairment losses and other charges				$	—				$	(49,755	)				$	—				$	(50,214	)
Corporate expenses					(7,556	)				(5,292	)					(13,956	)				(15,588	)
Interest income					158					97						316					509
Loss on early extinguishment of debt					(886	)				—						(886	)				(883	)
Loss on early termination of derivative financial instruments					(18,263	)				—						(18,263	)				—
Equity in earnings (losses) of joint ventures					459					432						(101	)				571
Foreign currency exchange gain (loss)					5,256					(1,140	)					11,442					801
Other income, net					462					82						694					43
Income (loss) from discontinued operations					1,849					(1,191	)					1,140					440
Depreciation expense - discontinued operations					—					1,537						—					3,061
Income taxes - discontinued operations					—					(8	)					—					(1,440	)
Noncontrolling interest in consolidated affiliates					(1,371	)				(1,101	)					228					(348	)
Adjustments from consolidated affiliates					(2,136	)				(2,741	)					(3,618	)				(4,305	)
Adjustments from unconsolidated affiliates					4,156					3,925						7,558					7,824
Other adjustments					(789	)				24						(847	)				93
EBITDA				$	24,199				$	(15,931	)				$	52,878				$	8,658

(a) We account for this property under the equity method of accounting. Therefore, EBITDA related to our 45% interest in this property is reflected in adjustments from unconsolidated affiliates. Property EBITDA represents 100% of revenue and expenses generated by the property.

(b) 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.

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

24

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three and Six Months Ended June 30, 2010

Reconciliation of Property EBITDA to Comparable EBITDA

(in thousands)

	Three Months Ended June 30, 2010									Six Months Ended June 30, 2010
	Property EBITDA			Adjustments			Comparable EBITDA			Property EBITDA			Adjustments			Comparable EBITDA
Meetings & Business Hotels:
Fairmont Chicago	$	3,642		$	—		$	3,642		$	913		$	—		$	913
Fairmont Scottsdale		2,803			—			2,803			8,639			—			8,639
Four Seasons Washington, D.C.		4,513			—			4,513			5,753			—			5,753
Hyatt Regency La Jolla		1,371			(672	)		699			1,992			(976	)		1,016
InterContinental Chicago		6,107			(2,992	)		3,115			5,400			(2,646	)		2,754
InterContinental Miami		1,815			—			1,815			8,108			—			8,108
Westin St. Francis		4,891			—			4,891			7,474			—			7,474
Total Meetings & Business Hotels		25,142			(3,664	)		21,478			38,279			(3,622	)		34,657
Ocean Front Resorts:
Four Seasons Punta Mita Resort		2,035			—			2,035			8,265			—			8,265
Hotel del Coronado		9,724			(5,433	)		4,291			15,278			(8,551	)		6,727
Loews Santa Monica Beach Hotel		2,999			—			2,999			4,996			—			4,996
Ritz-Carlton Half Moon Bay		2,444			—			2,444			2,997			—			2,997
Ritz-Carlton Laguna Niguel		1,830			—			1,830			3,493			—			3,493
Total Ocean Front Resorts		19,032			(5,433	)		13,599			35,029			(8,551	)		26,478
European Hotels:
InterContinental Prague		2,456			—			2,456			3,361			—			3,361
Marriott Hamburg		1,356			(1,412	)		(56	)		2,750			(2,868	)		(118	)
Marriott London Grosvenor Square		3,350			—			3,350			5,878			—			5,878
Paris Marriott Champs Elysees		5,670			(3,861	)		1,809			9,075			(8,072	)		1,003
Total European Hotels		12,832			(5,273	)		7,559			21,064			(10,940	)		10,124
Non-Core Assets:
Marriott Lincolnshire Resort		(267	)		—			(267	)		(1,319	)		—			(1,319	)
Total Non-Core Assets		(267	)		—			(267	)		(1,319	)		—			(1,319	)
	$	56,739		$	(14,370	)	$	42,369		$	93,053		$	(23,113	)	$	69,940
	% of QTR Comparable EBITDA									% of YTD Comparable EBITDA
Meetings & Business Hotels		51	%								50	%
Ocean Front Resorts		32	%								38	%
European Hotels		18	%								14	%
Non-Core Assets		-1	%								-2	%
Total		100	%								100	%

25