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

Exhibit 99.2

Strategic Hotels & Resorts

Supplemental Financial Information

December 31, 2010

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 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 December 31, 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
2011 GUIDANCE
2011 Guidance		26

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 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 16 properties totaling 7,630 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:

42

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, Capital Markets and Treasurer

(312) 658-5000

1

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

Board of Directors

Raymond L. Gellein, Jr.

Chairman of the Board 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

William A. Prezant

Director and Chairman of the Corporate Governance and Nominating Committee

Kenneth Fisher

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)	December 31, 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)

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, Capital Markets and Treasurer

Cory P. Warning

Vice President, Development

3

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	December 31, 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
J.P. Morgan Securities	Joseph Greff	(212) 622-0548
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

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

FINANCIAL HIGHLIGHTS

Supplemental Financial Data

(in thousands, except per share information)

	December 31, 2010
	Pro Rata Share			Consolidated
Capitalization
Common shares outstanding		151,305			151,305
Operating partnership units outstanding		955			955
Restricted stock units outstanding		1,166			1,166
Combined shares, options and units outstanding		153,426			153,426
Common stock price at end of period	$	5.29		$	5.29
Common equity capitalization	$	811,624		$	811,624
Preferred equity capitalization (at $25.00 face value)		370,236			370,236
Consolidated debt		1,146,281			1,146,281
Pro rata share of unconsolidated debt		265,950			—
Pro rata share of consolidated debt		(107,065	)		—
Cash and cash equivalents		(78,842	)		(78,842	)
Total enterprise value	$	2,408,184		$	2,249,299
Net Debt / Total Enterprise Value		50.9	%		47.4	%
Preferred Equity / Total Enterprise Value		15.4	%		16.5	%
Common Equity / Total Enterprise Value		33.7	%		36.1	%

5

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) Supplemental Financial Information Three Months and Years Ended December 31, 2010 and 2009

Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended December 31,						Years Ended December 31,
	2010			2009			2010			2009
Revenues:
Rooms	$	93,885		$	87,077		$	362,559		$	343,891
Food and beverage		66,339			59,412			238,762			216,982
Other hotel operating revenue		22,696			22,439			79,981			89,525
Lease revenue		1,608			1,345			4,991			4,858
Total revenues		184,528			170,273			686,293			655,256
Operating Costs and Expenses:
Rooms		27,204			25,379			105,142			100,642
Food and beverage		47,241			42,920			171,279			160,252
Other departmental expenses		53,467			50,375			199,336			193,699
Management fees		6,093			5,897			22,911			23,386
Other hotel expenses		8,733			13,893			48,781			52,385
Lease expense		1,170			1,255			4,566			4,752
Depreciation and amortization		32,406			34,379			130,601			130,955
Impairment losses and other charges		141,858			49,526			141,858			99,740
Corporate expenses		12,594			4,294			34,692			23,910
Total operating costs and expenses		330,766			227,918			859,166			789,721
Operating loss		(146,238	)		(57,645	)		(172,873	)		(134,465	)
Interest expense		(17,797	)		(23,255	)		(86,285	)		(93,929	)
Interest income		61			109			430			640
Loss on early extinguishment of debt		—			—			(925	)		(883	)
Loss on early termination of derivative financial instruments		—			—			(18,263	)		—
Equity in earnings (losses) of joint ventures		10,125			(426	)		13,025			1,718
Foreign currency exchange loss		(16	)		(40	)		(1,410	)		(896	)
Other income (expenses), net		99			(305	)		2,398			(137	)
Loss before income taxes and discontinued operations		(153,766	)		(81,562	)		(263,903	)		(227,952	)
Income tax expense		(1,112	)		(1,881	)		(1,408	)		(3,344	)
Loss from continuing operations		(154,878	)		(83,443	)		(265,311	)		(231,296	)
Income (loss) from discontinued operations, net of tax		28,037			17,745			34,511			(15,137	)
Net loss		(126,841	)		(65,698	)		(230,800	)		(246,433	)
Net loss attributable to the noncontrolling interests in SHR’s operating partnership		808			832			1,687			3,129
Net (income) loss attributable to the noncontrolling interests in consolidated affiliates		(1,080	)		403			(1,938	)		(641	)
Net loss attributable to SHR		(127,113	)		(64,463	)		(231,051	)		(243,945	)
Preferred shareholder dividends		(7,722	)		(7,722	)		(30,886	)		(30,886	)
Net loss attributable to SHR common shareholders	$	(134,835	)	$	(72,185	)	$	(261,937	)	$	(274,831	)
Basic and Diluted Loss Per Share:
Loss from continuing operations attributable to SHR common shareholders	$	(1.07	)	$	(1.19	)	$	(2.41	)	$	(3.45	)
Income (loss) from discontinued operations attributable to SHR		0.18			0.23			0.28			(0.20	)
Net loss attributable to SHR common shareholders	$	(0.89	)	$	(0.96	)	$	(2.13	)	$	(3.65	)
Weighted average common shares outstanding		151,663			75,426			122,933			75,267

6

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

Consolidated Balance Sheets

(in thousands, except share data)

	December 31, 2010			December 31, 2009
Assets
Investment in hotel properties, net	$	1,835,451		$	2,162,584
Goodwill		40,359			75,758
Intangible assets, net of accumulated amortization of $6,536 and $4,400		32,620			34,046
Assets held for sale		45,145			—
Investment in joint ventures		18,024			46,745
Cash and cash equivalents		78,842			116,310
Restricted cash and cash equivalents		34,618			22,829
Accounts receivable, net of allowance for doubtful accounts of $1,922 and $2,657		35,250			54,524
Deferred financing costs, net of accumulated amortization of $15,756 and $12,543		3,322			11,225
Deferred tax assets		4,121			34,244
Other assets		34,564			39,878
Total assets	$	2,162,316		$	2,598,143
Liabilities, Noncontrolling Interests and Equity
Liabilities:
Mortgages payable	$	1,118,281		$	1,300,745
Exchangeable senior notes, net of discount		—			169,452
Bank credit facility		28,000			178,000
Liabilities of assets held for sale		93,206			—
Accounts payable and accrued expenses		266,773			236,269
Deferred tax liabilities		1,732			16,940
Deferred gain on sale of hotels		3,930			101,852
Total liabilities		1,511,922			2,003,258
Noncontrolling interests in SHR’s operating partnership		5,050			2,717
Equity:
SHR’s shareholders’ equity:
8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value; 4,488,750 sharesissued and outstanding; liquidation preference $25.00 per share and $131,296 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 $133,975 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 $167,469 in the aggregate)		138,940			138,940
Common shares ($0.01 par value; 250,000,000 common shares authorized; 151,305,314 and 75,253,252 common shares issued and outstanding)		1,513			752
Additional paid-in capital		1,553,286			1,233,856
Accumulated deficit		(1,185,294	)		(954,208	)
Accumulated other comprehensive loss		(107,164	)		(69,341	)
Total SHR’s shareholders’ equity		620,262			568,980
Noncontrolling interests in consolidated affiliates		25,082			23,188
Total equity		645,344			592,168
Total liabilities, noncontrolling interests and equity	$	2,162,316		$	2,598,143

7

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) Supplemental Financial Information Three Months and Years Ended December 31, 2010 and 2009

Discontinued Operations

The results of operations of hotels sold or held for sale are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. On December 23, 2010, we entered into an agreement to sell our leasehold interest in the Paris Marriott Champs Elysees hotel for an estimated €26,500,000. We also expect to receive an additional €13,200,000 related to the release of an existing leasehold guarantee and other closing adjustments for total proceeds of €39,700,000. No earnest money has been deposited by the buyer, and the sale, subject to certain closing contingencies, is scheduled to close before April 30, 2011. The following hotels were sold during 2010 and 2009 (in thousands):

Hotel	Date Sold	Net Sales Proceeds
InterContinental Prague	December 15, 2010	$	3,564
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, net of tax for the three months and years ended December 31, 2010 and 2009 (in thousands):

	Three Months Ended December 31,						Years Ended December 31,
	2010			2009			2010			2009
Hotel operating revenues	$	16,896		$	25,213		$	68,883		$	100,435
Operating costs and expenses		14,858			18,175			55,252			79,719
Depreciation and amortization		567			2,205			5,980			13,307
Impairment losses and other charges		—			269			—			31,064
Total operating costs and expenses		15,425			20,649			61,232			124,090
Operating income (loss)		1,471			4,564			7,651			(23,655	)
Interest expense		(1,990	)		(2,138	)		(9,706	)		(8,592	)
Interest income		13			(82	)		32			101
Loss on early extinguishment of debt		(95	)		—			(95	)		—
Foreign currency exchange (loss) gain		(98	)		(1,710	)		7,392			(1,141	)
Other expenses, net		—			(554	)		—			(554	)
Income tax benefit (expense)		260			(499	)		(476	)		540
Gain on sale		28,476			18,164			29,713			18,164
Income (loss) from discontinued operations, net of tax	$	28,037		$	17,745		$	34,511		$	(15,137	)

8

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) Supplemental Financial Information Three Months and Years Ended December 31, 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^(a). We account for this investment using the equity method of accounting.

	Three Months Ended December 31,						Years Ended December 31,
	2010			2009			2010			2009
Total revenues (100%)	$	27,932		$	19,676		$	122,099		$	116,297
Property EBITDA (100%)	$	5,629		$	5,767		$	36,500		$	37,988
Equity in earnings (losses) of joint venture (SHR 45% ownership)
Property EBITDA	$	2,533		$	2,595		$	16,425		$	17,095
Depreciation and amortization		(1,891	)		(1,973	)		(7,894	)		(7,736	)
Interest expense		(2,003	)		(1,874	)		(7,714	)		(7,799	)
Gain on extinguishment of debt (b)		11,025			—			11,025			—
Other expenses, net		(32	)		(120	)		(195	)		(353	)
Income taxes		392			469			503			(82	)
Equity in earnings (losses) of joint venture	$	10,024		$	(903	)	$	12,150		$	1,125
Comparable EBITDA Contribution from investment in Hotel del Coronado
Equity in earnings (losses) of joint venture	$	10,024		$	(903	)	$	12,150		$	1,125
Depreciation and amortization		1,891			1,973			7,894			7,736
Interest expense		2,003			1,874			7,714			7,799
Gain on extinguishment of debt (b)		(11,025	)		—			(11,025	)		—
Income taxes		(392	)		(469	)		(503	)		82
Comparable EBITDA Contribution from investment in Hotel del Coronado	$	2,501		$	2,475		$	16,230		$	16,742
Comparable FFO Contribution from investment in Hotel del Coronado
Equity in earnings (losses) of joint venture	$	10,024		$	(903	)	$	12,150		$	1,125
Depreciation and amortization		1,891			1,973			7,894			7,736
Gain on extinguishment of debt (b)		(11,025	)		—			(11,025	)		—
											��
Comparable FFO Contribution from investment in Hotel del Coronado	$	890		$	1,070		$	9,019		$	8,861

Debt	Interest Rate		Spread over LIBOR		Loan Amount			Maturity
CMBS Mortgage and Mezzanine		2.34%		208 bp	$	572,500			January 2011
Revolving Credit Facility		2.76%		250 bp		18,500			January 2011
						591,000
Cash and cash equivalents						(10,720	)
Net Debt					$	580,280

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

(a) On February 4, 2011, we completed a recapitalization of the joint venture that owns the Hotel del Coronado. As part of the recapitalization, a new joint venture was formed to own the Hotel del Coronado and to invest cash in the asset. Pursuant to the terms of the recapitalization, we became a limited partner in the new joint venture, and our ownership interest in the Hotel del Coronado decreased from 45% to 34.3%. In connection with the recapitalization, the new joint venture secured $425,000,000 of five-year debt financing at a rate of LIBOR plus 480 basis points, subject to a 1% LIBOR floor. Additionally, the new joint venture purchased a two-year, 2% LIBOR cap, which was required by the loan.

(b) In December 2010, a $37,500,000 mezzanine layer of the Hotel del Coronado’s debt structure was settled for a discounted pay-off of $13,000,000, which resulted in a gain on the extinguishment of debt of $24,500,000. We recorded our 45% share of the gain equal to $11,025,000.

9

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) Supplemental Financial Information Three Months and Years Ended December 31, 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 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 December 31,						Years Ended December 31,
	2010			2009			2010			2009
North Beach Venture
Hotel condominium cost of sales (100%)	$	—		$	—		$	—		$	(4	)
SHR’s 45% share
Hotel condominium cost of sales	$	—		$	—		$	—		$	(2	)
Interest expense		(9	)		—			(39	)		—
Other income (expenses), net		4			15			64			(186	)
Income taxes		—			(81	)		—			—
SHR’s share of net (loss) income	$	(5	)	$	(66	)	$	25		$	(188	)
Net (loss) income	$	(5	)	$	(66	)	$	25		$	(188	)
Interest expense		9			—			39			—
Income taxes		—			81			—			—
EBITDA Contribution from investment in North Beach Venture	$	4		$	15		$	64		$	(188	)
FFO Contribution from investment in North Beach Venture	$	(5	)	$	(66	)	$	25		$	(188	)
	Three Months  Ended December 31,						Years Ended December 31,
	2010			2009			2010			2009
RCPM
SHR’s 31% share
Sales	$	348		$	978		$	2,836		$	2,709
EBITDA Contribution from investment in RCPM	$	179		$	259		$	690		$	570
FFO Contribution from investment in RCPM	$	1		$	170		$	350		$	380
SHR’s share of total residential activity:
Sales	$	348		$	978		$	2,836		$	2,709
EBITDA	$	183		$	274		$	754		$	382
FFO	$	(4	)	$	104		$	375		$	192

10

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) Supplemental Financial Information Three Months and Years Ended December 31, 2010 and 2009

Leasehold Information

(in thousands)

	Three Months Ended December 31,						Years Ended December 31,
	2010			2009			2010			2009
Paris Marriott Champs Elysees (a):
Property EBITDA	$	3,753		$	4,368		$	19,611		$	17,739
Revenue (b)	$	3,753		$	4,368		$	19,611		$	17,739
Lease Expense		(2,978	)		(3,236	)		(11,893	)		(12,219	)
Less: Deferred Gain on Sale Leaseback		(1,144	)		(1,237	)		(4,465	)		(4,685	)
Adjusted Lease Expense		(4,122	)		(4,473	)		(16,358	)		(16,904	)
EBITDA Contribution from Leasehold	$	(369	)	$	(105	)	$	3,253		$	835
Marriott Hamburg:
Property EBITDA	$	1,681		$	1,567		$	6,051		$	5,847
Revenue (b)	$	1,608		$	1,345		$	4,991		$	4,858
Lease Expense		(1,170	)		(1,255	)		(4,566	)		(4,752	)
Less: Deferred Gain on Sale Leaseback		(53	)		(58	)		(207	)		(217	)
Adjusted Lease Expense		(1,223	)		(1,313	)		(4,773	)		(4,969	)
EBITDA Contribution from Leasehold	$	385		$	32		$	218		$	(111	)
Total Leaseholds:
Property EBITDA	$	5,434		$	5,935		$	25,662		$	23,586
Revenue (b)	$	5,361		$	5,713		$	24,602		$	22,597
Lease Expense		(4,148	)		(4,491	)		(16,459	)		(16,971	)
Less: Deferred Gain on Sale Leaseback		(1,197	)		(1,295	)		(4,672	)		(4,902	)
Adjusted Lease Expense		(5,345	)		(5,786	)		(21,131	)		(21,873	)
EBITDA Contribution from Leaseholds	$	16		$	(73	)	$	3,471		$	724
	December  31, 2010			December  31, 2009
Security Deposits (c):
Paris Marriott Champs Elysees	$	14,459		$	10,720
Marriott Hamburg		2,540			7,158
Total	$	16,999		$	17,878

(a) On December 23, 2010, we entered into an agreement to sell our leasehold interest in the Paris Marriott Champs Elysees. No earnest money has been deposited by the buyer, and the sale, subject to certain closing contingencies, is scheduled to close before April 30, 2011. The results of operations for the Paris Marriott have been classified as discontinued operations for all periods presented.

(b) For the three months and years ended December 31, 2010 and 2009, Revenue for the Paris Marriott Champs Elysees represents Property EBITDA. For the three months and years ended December 31, 2010 and 2009, Revenue for the Marriott Hamburg represents lease revenue.

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

11

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

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) Supplemental Financial Information Three Months and Years Ended December 31, 2010 and 2009

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

(in thousands)

	Three Months Ended December 31,						Years Ended December 31,
	2010			2009			2010			2009
Net loss attributable to SHR common shareholders	$	(134,835	)	$	(72,185	)	$	(261,937	)	$	(274,831	)
Depreciation and amortization - continuing operations		32,406			34,379			130,601			130,955
Depreciation and amortization - discontinued operations		567			2,205			5,980			13,307
Interest expense - continuing operations		17,797			23,255			86,285			93,929
Interest expense - discontinued operations		1,990			2,138			9,706			8,592
Income taxes - continuing operations		1,112			1,881			1,408			3,344
Income taxes - discontinued operations		(260	)		499			476			(540	)
Noncontrolling interests		(808	)		(832	)		(1,687	)		(3,129	)
Adjustments from consolidated affiliates		(2,013	)		(2,647	)		(7,609	)		(9,460	)
Adjustments from unconsolidated affiliates		3,673			3,498			15,563			15,934
Preferred shareholder dividends		7,722			7,722			30,886			30,886
EBITDA		(72,649	)		(87	)		9,672			8,987
Realized portion of deferred gain on sale leaseback - continuing operations		(53	)		(58	)		(207	)		(217	)
Realized portion of deferred gain on sale leaseback - discontinued operations		(1,144	)		(1,237	)		(4,465	)		(4,685	)
Loss on sale of assets - continuing operations		—			472			—			477
Gain on sale of assets - discontinued operations		(28,476	)		(18,164	)		(29,713	)		(18,164	)
Impairment losses and other charges - continuing operations		141,858			49,526			141,858			99,740
Impairment losses and other charges - discontinued operations		—			269			—			31,064
Impairment losses and other charges - adjustments from consolidated affiliates		—			—			—			(169	)
Loss on early extinguishment of debt - continuing operations		—			—			925			883
Loss on early extinguishment of debt - discontinued operations		95			—			95			—
Loss on early termination of derivative financial instruments		—			—			18,263			—
Gain on extinguishment of debt of unconsolidated affiliate		(11,025	)		—			(11,025	)		—
Foreign currency exchange loss - continuing operations (a)		16			40			1,410			896
Foreign currency exchange loss (gain) - discontinued operations (a)		98			1,710			(7,392	)		1,141
Comparable EBITDA	$	28,720		$	32,471		$	119,421		$	119,953

(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

Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR) Supplemental Financial Information Three Months and Years Ended December 31, 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 December 31,						Years Ended December 31,
	2010			2009			2010			2009
Net loss attributable to SHR common shareholders	$	(134,835	)	$	(72,185	)	$	(261,937	)	$	(274,831	)
Depreciation and amortization - continuing operations		32,406			34,379			130,601			130,955
Depreciation and amortization - discontinued operations		567			2,205			5,980			13,307
Corporate depreciation		(303	)		(304	)		(1,217	)		(1,217	)
Loss on sale of assets - continuing operations		—			472			—			477
Gain on sale of assets - discontinued operations		(28,476	)		(18,164	)		(29,713	)		(18,164	)
Realized portion of deferred gain on sale leaseback - continuing operations		(53	)		(58	)		(207	)		(217	)
Realized portion of deferred gain on sale leaseback - discontinued operations		(1,144	)		(1,237	)		(4,465	)		(4,685	)
Deferred tax expense on realized portion of deferred gain on sale leasebacks		357			386			1,393			1,462
Noncontrolling interests adjustments		(222	)		(488	)		(1,159	)		(1,928	)
Adjustments from consolidated affiliates		(1,335	)		(1,971	)		(5,979	)		(7,619	)
Adjustments from unconsolidated affiliates		1,874			2,005			7,973			7,864
FFO		(131,164	)		(54,960	)		(158,730	)		(154,596	)
Convertible noncontrolling interests		(586	)		(344	)		(528	)		(1,201	)
FFO - Fully Diluted		(131,750	)		(55,304	)		(159,258	)		(155,797	)
Impairment losses and other charges - continuing operations		141,858			49,526			141,858			99,740
Impairment losses and other charges - discontinued operations		—			269			—			31,064
Impairment losses and other charges - adjustments from consolidated affiliates		—			—			—			(169	)
Non-cash mark to market of interest rate swaps - continuing operations		(535	)		—			9,014			—
Non-cash mark to market of interest rate swaps - discontinued operations		(204	)		—			25			—
Loss on early extinguishment of debt - continuing operations		—			—			925			883
Loss on early extinguishment of debt - discontinued operations		95			—			95			—
Loss on early termination of derivative financial instruments		—			—			18,263			—
Gain on extinguishment of debt of unconsolidated affiliate		(11,025	)		—			(11,025	)		—
Foreign currency exchange loss - continuing operations (a)		16			40			1,410			896
Foreign currency exchange loss (gain), net of tax - discontinued operations (a)		95			1,731			(7,421	)		596
Comparable FFO	$	(1,450	)	$	(3,738	)	$	(6,114	)	$	(22,787	)
Comparable FFO per diluted share	$	(0.01	)	$	(0.05	)	$	(0.05	)	$	(0.30	)
Weighted average diluted shares		151,663			75,426			122,933			75,267

(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)	December 31, 2010

Debt Summary

(dollars in thousands)

Debt	Interest Rate	Spread (a)	Loan Amount		Maturity (b)
Fairmont Scottsdale	0.82%	56 bp	$	180,000	September 2011
InterContinental Chicago	1.32%	106 bp		121,000	October 2011
InterContinental Miami	0.99%	73 bp		90,000	October 2011
Bank credit facility	4.01%	375 bp		28,000	March 2012
Loews Santa Monica Beach Hotel	0.89%	63 bp		118,250	March 2012
Ritz-Carlton Half Moon Bay	0.93%	67 bp		76,500	March 2012
Hyatt Regency La Jolla	1.26%	100 bp		97,500	September 2012
Marriott London Grosvenor Square (c)	1.86%	110 bp (c)		117,281	October 2013
Westin St. Francis	6.09%	Fixed		220,000	June 2017
Fairmont Chicago	6.09%	Fixed		97,750	June 2017
			$	1,146,281

(a) Spread over LIBOR (0.26% at December 31, 2010).

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

(c) Principal balance of £75,190,000 at December 31, 2010. Spread over three-month GBP LIBOR (0.76% at December 31, 2010).

Domestic and European Interest Rate Swaps

Swap Effective Date	Fixed Pay Rate Against LIBOR	Notional Amount		Maturity
March 2009 (d)	1.22%	$	50,000		August 2011
February 2010 (d)	4.59%		75,000		April 2012
February 2010	4.84%		100,000		July 2012
February 2010	5.50%		75,000		June 2013
February 2010	5.42%		50,000		August 2013
February 2010	4.90%		100,000		September 2014
February 2010	4.96%		100,000		December 2014
April 2010	5.42%		75,000		April 2015
December 2010	5.23%		100,000		December 2015
	4.81%	$	725,000

(d) These interest rate swaps were terminated on February 11, 2011.

	Fixed Pay Rate Against GBP LIBOR						Notional
Swap Effective Date	Current			Future			Amount		Maturity
October 2007		3.22	%		5.72	%(e)	£	75,190	October 2013

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

Forward-Starting Interest Rate Swaps

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

At December 31, 2010, future scheduled debt principal payments (including extension options) are as follows:

Years ending December 31,	Amount
2011	$	394,213
2012		331,860
2013		119,778
2014		9,482
2015		10,075
Thereafter		280,873
	$	1,146,281

Percent of fixed rate debt including U.S. and European swaps	~ 100.0	%
Weighted average interest rate including U.S. and European swaps (f)	5.71	%
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year)	4.27

(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)	December 31, 2010

Portfolio Data

Portfolio at December 31, 2010

(dollars in thousands)

Hotel	Location	Number of Rooms		% of Total Rooms			% of QTR December 2010 Property EBITDA			QTR December 2010 Property EBITDA
United States:
Westin St. Francis	San Francisco, CA		1,195		16	%		15	%	$	6,863
InterContinental Chicago (a)	Chicago, IL		792		10	%		13	%		6,232
Hotel del Coronado (b)	Coronado, CA		757		10	%		5	%		2,533
Fairmont Chicago	Chicago, IL		687		9	%		12	%		5,554
Fairmont Scottsdale	Scottsdale, AZ		649		9	%		5	%		2,154
InterContinental Miami	Miami, FL		641		8	%		4	%		1,826
Hyatt Regency La Jolla (a)	La Jolla, CA		419		5	%		1	%		413
Ritz-Carlton Laguna Niguel	Dana Point, CA		396		6	%		0	%		(166	)
Marriott Lincolnshire Resort	Lincolnshire, IL		389		5	%		2	%		1,115
Loews Santa Monica Beach Hotel	Santa Monica, CA		342		4	%		5	%		2,329
Ritz-Carlton Half Moon Bay	Half Moon Bay, CA		261		4	%		4	%		1,851
Four Seasons Washington, D.C.	Washington, D.C.		222		3	%		10	%		4,507
Total United States			6,750		89	%		76	%		35,211
Mexican:
Four Seasons Punta Mita Resort	Punta Mita, Mexico		173		2	%		7	%		3,351
Total Mexican			173		2	%		7	%		3,351
Total North American			6,923		91	%		83	%		38,562
European:
Marriott Hamburg (c)	Hamburg, Germany		278		4	%		N/A			N/A
Marriott London Grosvenor Square	London, England		237		3	%		9	%		4,212
Total European			515		7	%		9	%		4,212
Assets Held For Sale:
Paris Marriott Champs Elysees (d)	Paris, France		192		2	%		8	%		3,753
			7,630		100	%		100	%	$	46,527

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

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

(d) As of December 31, 2010, this property has been classified as held for sale; therefore, the results of operations have been included in income (loss) from discontinued operations for the three months and years ended December 31, 2010 and 2009. However, for purposes of this comparison, the percentage of Property EBITDA calculation above reflects operating results before they were reclassified to discontinued operations.

16

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Four Quarters Ended December 31, 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 Paris Marriott Champs Elysees, InterContinental Prague, 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 December 31, 2010)

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

	Three Months Ended
	March 31, 2010			June 30, 2010			September 30, 2010			December 31, 2010			Total
Same store property revenues	$	133,515		$	159,274		$	152,744		$	162,375		$	607,908
Same store seasonality %		22.0	%		26.2	%		25.1	%		26.7	%		100.0	%

Mexican Hotel (as of December 31, 2010)

Same store property revenues - 1 Property and 173 Rooms

	Three Months Ended
	March 31, 2010			June 30, 2010			September 30, 2010			December 31, 2010			Total
Same store property revenues	$	14,093		$	8,515		$	5,618		$	10,703		$	38,929
Same store seasonality %		36.2	%		21.9	%		14.4	%		27.5	%		100.0	%

North American Hotels (as of December 31, 2010)

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

	Three Months Ended
	March 31, 2010			June 30, 2010			September 30, 2010			December 31, 2010			Total
Same store property revenues	$	147,608		$	167,789		$	158,362		$	173,078		$	646,837
Same store seasonality %		22.8	%		25.9	%		24.5	%		26.8	%		100.0	%

European Hotels (as of December 31, 2010)

Same store property revenues - 2 Properties and 515 Rooms

	Three Months Ended
	March 31, 2010			June 30, 2010			September 30, 2010			December 31, 2010			Total
Same store property revenues	$	11,195		$	13,377		$	14,958		$	15,872		$	55,402
Same store seasonality %		20.2	%		24.1	%		27.0	%		28.7	%		100.0	%

17

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 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 Paris Marriott Champs Elysees, InterContinental Prague, 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 December 31, 2010)

11 Properties

5,993 Rooms

	Three Months Ended December 31,									Years Ended December  31,
	2010			2009			Change			2010			2009			Change
ADR	$	215.45		$	206.88			4.1	%	$	211.20		$	207.00			2.0	%
Average Occupancy		68.0	%		64.3	%		3.7	pts		68.6	%		66.3	%		2.3	pts
RevPAR	$	146.45		$	133.05			10.1	%	$	144.97		$	137.33			5.6	%
Total RevPAR	$	290.41		$	262.77			10.5	%	$	277.96		$	265.36			4.7	%
Property EBITDA Margin		20.1	%		15.0	%		5.1	pts		17.9	%		16.3	%		1.6	pts

Mexican Hotel (as of December 31, 2010)

1 Property

173 Rooms

	Three Months Ended December 31,									Years Ended December  31,
	2010			2009			Change			2010			2009			Change
ADR	$	718.15		$	713.49			0.7	%	$	655.90		$	707.10			-7.2	%
Average Occupancy		48.1	%		56.6	%		(8.5	)pts		49.9	%		50.1	%		(0.2	)pts
RevPAR	$	345.63		$	403.99			-14.4	%	$	327.42		$	354.53			-7.6	%
Total RevPAR	$	672.45		$	772.50			-13.0	%	$	616.49		$	631.21			-2.3	%
Property EBITDA Margin		31.3	%		31.7	%		(0.4	)pts		30.4	%		33.0	%		(2.6	)pts

North American Hotels (as of December 31, 2010)

12 Properties

6,166 Rooms

	Three Months Ended December 31,									Years Ended December 31,
	2010			2009			Change			2010			2009			Change
ADR	$	225.38		$	219.27			2.8	%	$	220.35		$	217.68			1.2	%
Average Occupancy		67.4	%		64.1	%		3.3	pts		68.1	%		65.9	%		2.2	pts
RevPAR	$	151.96		$	140.55			8.1	%	$	150.09		$	143.42			4.7	%
Total RevPAR	$	300.98		$	276.88			8.7	%	$	287.46		$	275.62			4.3	%
Property EBITDA Margin		20.8	%		16.3	%		4.5	pts		18.6	%		17.3	%		1.3	pts

European Hotels (as of December 31, 2010)

2 Properties

515 Rooms

	Three Months Ended December 31,									Years Ended December 31,
	2010			2009			Change			2010			2009			Change
ADR	$	270.86		$	264.42			2.4	%	$	261.99		$	237.16			10.5	%
Average Occupancy		82.4	%		80.4	%		2.0	pts		80.6	%		79.5	%		1.1	pts
RevPAR	$	223.20		$	212.55			5.0	%	$	211.28		$	188.47			12.1	%
Total RevPAR	$	334.99		$	331.58			1.0	%	$	294.73		$	273.51			7.8	%
Property EBITDA Margin		37.1	%		35.3	%		1.8	pts		36.7	%		34.4	%		2.3	pts

18

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 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 months and years ended December 31, 2010 and 2009. Property EBITDA reflects property net operating income plus depreciation and amortization.

	Three Months  Ended December 31,									Years Ended December 31,
	2010			2009			Change			2010			2009			Change
UNITED STATES HOTELS:
FAIRMONT CHICAGO
Selected Financial Information:
Total revenues	$	14,992		$	13,573			10.5	%	$	52,934		$	51,297			3.2	%
Property EBITDA	$	5,554		$	2,086			166.3	%	$	9,337		$	6,305			48.1	%
Selected Operating Information:
Rooms		687			687			—			687			687			—
Average occupancy		61.8	%		57.4	%		4.4	pts		60.4	%		59.5	%		0.9	pts
ADR	$	225.35		$	223.78			0.7	%	$	204.00		$	201.54			1.2	%
RevPAR	$	139.29		$	128.42			8.5	%	$	123.17		$	119.84			2.8	%
Total RevPAR	$	237.20		$	214.74			10.5	%	$	211.10		$	204.57			3.2	%
FAIRMONT SCOTTSDALE
Selected Financial Information:
Total revenues	$	18,243		$	14,890			22.5	%	$	69,710		$	64,113			8.7	%
Property EBITDA	$	2,154		$	226			853.1	%	$	7,649		$	4,875			56.9	%
Selected Operating Information:
Rooms		649			649			—			649			649			—
Average occupancy		66.3	%		63.2	%		3.1	pts		65.8	%		61.8	%		4.0	pts
ADR	$	191.37		$	172.70			10.8	%	$	194.14		$	190.10			2.1	%
RevPAR	$	126.81		$	109.15			16.2	%	$	127.74		$	117.42			8.8	%
Total RevPAR	$	305.54		$	249.38			22.5	%	$	294.28		$	270.65			8.7	%
FOUR SEASONS WASHINGTON, D.C.
Selected Financial Information:
Total revenues	$	16,675		$	15,243			9.4	%	$	58,402		$	57,036			2.4	%
Property EBITDA	$	4,507		$	2,983			51.1	%	$	12,666		$	11,332			11.8	%
Selected Operating Information:
Rooms		222			222			—			222			222			—
Average occupancy		67.1	%		68.9	%		(1.8	)pts		69.9	%		67.9	%		2.0	pts
ADR	$	600.60		$	512.73			17.1	%	$	522.01		$	509.53			2.5	%
RevPAR	$	403.22		$	353.19			14.2	%	$	364.64		$	346.04			5.4	%
Total RevPAR	$	816.45		$	746.31			9.4	%	$	720.75		$	703.89			2.4	%
HOTEL DEL CORONADO
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 45%):
Total revenues	$	27,932		$	19,676			42.0	%	$	122,099		$	116,297			5.0	%
Property EBITDA	$	5,629		$	5,767			(2.4	)%	$	36,500		$	37,988			(3.9	)%
Selected Operating Information:
Rooms		757			757			—			757			757			—
Average occupancy		56.3	%		51.2	%		5.1	pts		64.1	%		61.2	%		2.9	pts
ADR	$	277.54		$	284.13			(2.3	)%	$	314.61		$	327.52			(3.9	)%
RevPAR	$	156.15		$	145.54			7.3	%	$	201.75		$	200.30			0.7	%
Total RevPAR	$	401.07		$	282.53			42.0	%	$	441.90		$	420.90			5.0	%

19

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2010 and 2009

	Three Months  Ended December 31,									Years Ended December 31,
	2010			2009			Change			2010			2009			Change
HYATT REGENCY LA JOLLA
Selected Financial Information:
Total revenues	$	6,694		$	7,079			(5.4	)%	$	29,618		$	32,279			(8.2	)%
Property EBITDA	$	413		$	(26	)		1,688.5	%	$	3,477		$	4,965			(30.0	)%
Selected Operating Information:
Rooms		419			419			—			419			419			—
Average occupancy		57.8	%		60.5	%		(2.7	)pts		69.1	%		71.5	%		(2.4	)pts
ADR	$	144.54		$	144.98			(0.3	)%	$	148.82		$	152.78			(2.6	)%
RevPAR	$	83.51		$	87.66			(4.7	)%	$	102.86		$	109.17			(5.8	)%
Total RevPAR	$	173.67		$	183.64			(5.4	)%	$	193.67		$	211.06			(8.2	)%
INTERCONTINENTAL CHICAGO
Selected Financial Information:
Total revenues	$	17,620		$	16,783			5.0	%	$	62,768		$	63,716			(1.5	)%
Property EBITDA	$	6,232		$	4,871			27.9	%	$	17,127		$	17,306			(1.0	)%
Selected Operating Information:
Rooms		792			792			—			792			792			—
Average occupancy		77.2	%		72.5	%		4.7	pts		73.4	%		76.1	%		(2.7	)pts
ADR	$	192.29		$	196.81			(2.3	)%	$	178.19		$	175.83			1.3	%
RevPAR	$	148.43		$	142.69			4.0	%	$	130.74		$	133.84			(2.3	)%
Total RevPAR	$	241.82		$	230.33			5.0	%	$	217.13		$	220.41			(1.5	)%
INTERCONTINENTAL MIAMI
Selected Financial Information:
Total revenues	$	11,173		$	9,051			23.4	%	$	45,731		$	40,845			12.0	%
Property EBITDA	$	1,826		$	996			83.3	%	$	9,354		$	6,870			36.2	%
Selected Operating Information:
Rooms		641			641			—			641			641			—
Average occupancy		69.7	%		55.6	%		14.1	pts		67.3	%		57.9	%		9.4	pts
ADR	$	150.24		$	150.13			0.1	%	$	161.31		$	170.29			(5.3	)%
RevPAR	$	104.74		$	83.45			25.5	%	$	108.64		$	98.54			10.2	%
Total RevPAR	$	189.46		$	153.49			23.4	%	$	195.46		$	174.58			12.0	%
LOEWS SANTA MONICA BEACH HOTEL
Selected Financial Information:
Total revenues	$	10,677		$	8,911			19.8	%	$	44,671		$	38,581			15.8	%
Property EBITDA	$	2,329		$	1,690			37.8	%	$	11,574		$	8,480			36.5	%
Selected Operating Information:
Rooms		342			342			—			342			342			—
Average occupancy		84.1	%		69.5	%		14.6	pts		87.0	%		77.4	%		9.6	pts
ADR	$	257.11		$	259.39			(0.9	)%	$	271.61		$	262.88			3.3	%
RevPAR	$	216.11		$	180.34			19.8	%	$	236.27		$	203.48			16.1	%
Total RevPAR	$	339.34		$	283.22			19.8	%	$	357.85		$	309.07			15.8	%
MARRIOTT LINCOLNSHIRE RESORT
Selected Financial Information:
Total revenues	$	10,750		$	9,680			11.1	%	$	30,150		$	30,566			(1.4	)%
Property EBITDA	$	1,115		$	949			17.5	%	$	683		$	2,496			(72.6	)%
Selected Operating Information:
Rooms		389			389			—			389			389			—
Average occupancy		48.8	%		49.3	%		(0.5	)pts		48.1	%		48.4	%		(0.3	)pts
ADR	$	121.66		$	110.36			10.2	%	$	115.33		$	115.09			0.2	%
RevPAR	$	59.41		$	54.45			9.1	%	$	55.49		$	55.69			(0.4	)%
Total RevPAR	$	246.74		$	222.18			11.1	%	$	212.93		$	215.87			(1.4	)%

20

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2010 and 2009

	Three Months  Ended December 31,									Years Ended December 31,
	2010			2009			Change			2010			2009			Change
RITZ-CARLTON HALF MOON BAY
Selected Financial Information:
Total revenues	$	12,774		$	11,982			6.6	%	$	51,727		$	45,771			13.0	%
Property EBITDA	$	1,851		$	929			99.2	%	$	7,505		$	4,527			65.8	%
Selected Operating Information:
Rooms		261			261			—			261			261			—
Average occupancy		59.2	%		62.3	%		(3.1	)pts		66.7	%		58.8	%		7.9	pts
ADR	$	354.13		$	308.32			14.9	%	$	327.19		$	306.95			6.6	%
RevPAR	$	209.78		$	192.19			9.1	%	$	218.10		$	180.45			20.9	%
Total RevPAR	$	532.00		$	498.99			6.6	%	$	542.98		$	480.46			13.0	%
RITZ-CARLTON LAGUNA NIGUEL
Selected Financial Information:
Total revenues	$	11,271		$	11,517			(2.1	)%	$	54,248		$	53,665			1.1	%
Property EBITDA	$	(166	)	$	1,307			(112.7	)%	$	8,882		$	10,157			(12.6	)%
Selected Operating Information:
Rooms		396			396			—			396			396			—
Average occupancy		40.2	%		40.9	%		(0.7	)pts		51.7	%		49.4	%		2.3	pts
ADR	$	310.16		$	305.29			1.6	%	$	338.84		$	344.41			(1.6	)%
RevPAR	$	124.54		$	124.93			(0.3	)%	$	175.20		$	170.17			3.0	%
Total RevPAR	$	309.38		$	316.11			(2.1	)%	$	375.31		$	371.28			1.1	%
WESTIN ST. FRANCIS
Selected Financial Information:
Total revenues	$	31,506		$	28,219			11.6	%	$	107,949		$	102,484			5.3	%
Property EBITDA	$	6,863		$	6,058			13.3	%	$	20,318		$	17,101			18.8	%
Selected Operating Information:
Rooms		1,195			1,195			—			1,195			1,195			—
Average occupancy		83.2	%		81.3	%		1.9	pts		79.6	%		78.7	%		0.9	pts
ADR	$	197.79		$	186.18			6.2	%	$	184.35		$	177.49			3.9	%
RevPAR	$	164.65		$	151.31			8.8	%	$	146.67		$	139.66			5.0	%
Total RevPAR	$	286.57		$	256.67			11.6	%	$	247.49		$	234.96			5.3	%

21

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2010 and 2009

	Three Months  Ended December 31,									Years Ended December 31,
	2010			2009			Change			2010			2009			Change
MEXICAN HOTEL:
FOUR SEASONS PUNTA MITA RESORT
Selected Financial Information:
Total revenues	$	10,703		$	12,295			(12.9	)%	$	38,928		$	39,858			(2.3	)%
Property EBITDA	$	3,351		$	3,894			(13.9	)%	$	11,823		$	13,136			(10.0	)%
Selected Operating Information:
Rooms		173			173			—			173			173			—
Average occupancy		48.1	%		56.6	%		(8.5	)pts		49.9	%		50.1	%		(0.2	)pts
ADR	$	718.15		$	713.49			0.7	%	$	655.90		$	707.10			(7.2	)%
RevPAR	$	345.63		$	403.99			(14.4	)%	$	327.42		$	354.53			(7.6	)%
Total RevPAR	$	672.45		$	772.50			(13.0	)%	$	616.49		$	631.21			(2.3	)%

22

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2010 and 2009

	Three Months  Ended December 31,									Years Ended December 31,
	2010			2009			Change			2010			2009			Change
EUROPEAN HOTELS:
MARRIOTT HAMBURG
Selected Financial Information:
Total revenues	$	6,030		$	6,004			0.4	%	$	20,936		$	21,226			(1.4	)%
Property EBITDA	$	1,681		$	1,567			7.3	%	$	6,051		$	5,847			3.5	%
Selected Operating Information:
Rooms		278			278			—			278			278			—
Average occupancy		81.9	%		80.2	%		1.7	pts		79.0	%		82.3	%		(3.3	)pts
ADR	$	194.63		$	186.13			4.6	%	$	185.78		$	170.87			8.7	%
RevPAR	$	159.45		$	149.20			6.9	%	$	146.73		$	140.56			4.4	%
Total RevPAR	$	235.78		$	234.75			0.4	%	$	206.33		$	209.19			(1.4	)%
MARRIOTT LONDON GROSVENOR SQUARE
Selected Financial Information:
Total revenues	$	9,842		$	9,706			1.4	%	$	34,465		$	30,187			14.2	%
Property EBITDA	$	4,212		$	3,976			5.9	%	$	14,293		$	11,863			20.5	%
Selected Operating Information:
Rooms		237			237			—			237			237			—
Average occupancy		83.0	%		80.6	%		2.4	pts		82.6	%		76.2	%		6.4	pts
ADR	$	359.17		$	355.72			1.0	%	$	347.48		$	321.10			8.2	%
RevPAR	$	297.97		$	286.85			3.9	%	$	286.99		$	244.67			17.3	%
Total RevPAR	$	451.37		$	445.16			1.4	%	$	398.42		$	348.96			14.2	%
PARIS MARRIOTT CHAMPS ELYSEES
Selected Financial Information:
Total revenues	$	10,887		$	10,092			7.9	%	$	44,031		$	40,150			9.7	%
Property EBITDA	$	3,753		$	4,368			(14.1	)%	$	19,611		$	17,739			10.6	%
Selected Operating Information:
Rooms		192			192			—			192			192			—
Average occupancy		84.4	%		77.2	%		7.2	pts		85.5	%		78.1	%		7.4	pts
ADR	$	583.36		$	615.74			(5.3	)%	$	595.16		$	609.70			(2.4	)%
RevPAR	$	492.24		$	475.58			3.5	%	$	508.95		$	476.06			6.9	%
Total RevPAR	$	616.33		$	571.31			7.9	%	$	628.29		$	572.92			9.7	%

23

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Years Ended December 31, 2010 and 2009

Reconciliation of Property EBITDA to EBITDA
(in thousands)
	Three Months Ended December 31,												Years Ended December 31,
	2010						2009						2010					2009
Hotel	Property EBITDA			EBITDA			Property EBITDA			EBITDA			Property EBITDA		EBITDA			Property EBITDA		EBITDA
Fairmont Chicago	$	5,554		$	5,554		$	2,086		$	2,086		$	9,337	$	9,337		$	6,305	$	6,305
Fairmont Scottsdale		2,154			2,154			226			226			7,649		7,649			4,875		4,875
Four Seasons Washington, D.C.		4,507			4,507			2,983			2,983			12,666		12,666			11,332		11,332
Hotel del Coronado (a)		5,629			—			5,767			—			36,500		—			37,988		—
Hyatt Regency La Jolla		413			413			(26	)		(26	)		3,477		3,477			4,965		4,965
InterContinental Chicago		6,232			6,232			4,871			4,871			17,127		17,127			17,306		17,306
InterContinental Miami		1,826			1,826			996			996			9,354		9,354			6,870		6,870
Loews Santa Monica Beach Hotel		2,329			2,329			1,690			1,690			11,574		11,574			8,480		8,480
Marriott Lincolnshire Resort		1,115			1,115			949			949			683		683			2,496		2,496
Ritz-Carlton Half Moon Bay		1,851			1,851			929			929			7,505		7,505			4,527		4,527
Ritz-Carlton Laguna Niguel		(166	)		(166	)		1,307			1,307			8,882		8,882			10,157		10,157
Westin St. Francis		6,863			6,863			6,058			6,058			20,318		20,318			17,101		17,101
Four Seasons Punta Mita Resort		3,351			3,351			3,894			3,894			11,823		11,823			13,136		13,136
Marriott Hamburg (b)		1,681			438			1,567			89			6,051		426			5,847		109
Marriott London Grosvenor Square		4,212			4,212			3,976			3,976			14,293		14,293			11,863		11,863
Paris Marriott Champs Elysees (c)		3,753			—			4,368			—			19,611		—			17,739		—
	$	51,304		$	40,679		$	41,641		$	30,028		$	196,850	$	135,114		$	180,987	$	119,522
Adjustments:
Impairment losses and other charges					(141,858	)					(49,526	)				(141,858	)				(99,740	)
Corporate expenses					(12,594	)					(4,294	)				(34,692	)				(23,910	)
Interest income					61						109					430					640
Loss on early extinguishment of debt					—						—					(925	)				(883	)
Loss on early termination of derivative financial instruments					—						—					(18,263	)				—
Equity in earnings (losses) of joint ventures					10,125						(426	)				13,025					1,718
Foreign currency exchange loss					(16	)					(40	)				(1,410	)				(896	)
Other income (expenses), net					99						(305	)				2,398					(137	)
Income (loss) from discontinued operations					28,037						17,745					34,511					(15,137	)
Depreciation expense - discontinued operations					567						2,205					5,980					13,307
Interest expense - discontinued operations					1,990						2,138					9,706					8,592
Income taxes - discontinued operations					(260	)					499					476					(540	)
Noncontrolling interest in consolidated affiliates					(1,080	)					403					(1,938	)				(641	)
Adjustments from consolidated affiliates					(2,013	)					(2,647	)				(7,609	)				(9,460	)
Adjustments from unconsolidated affiliates					3,673						3,498					15,563					15,934
Other adjustments					(59	)					526					(836	)				618
EBITDA				$	(72,649	)				$	(87	)			$	9,672				$	8,987

(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 and sublease 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. As of December 31, 2010, this property has been classified as held for sale. Therefore, its results of operations have been included in income (loss) from discontinued operations for the three months and years ended December 31, 2010 and 2009.

24

	Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)	Three Months and Year Ended December 31, 2010

Reconciliation of Property EBITDA to Comparable EBITDA

(in thousands)

	Three Months  Ended December 31, 2010									Year Ended December 31, 2010
	Property						Comparable			Property						Comparable
	EBITDA			Adjustments			EBITDA			EBITDA			Adjustments			EBITDA
Meetings & Business Hotels:
Fairmont Chicago	$	5,554		$	—		$	5,554		$	9,337		$	—		$	9,337
Fairmont Scottsdale		2,154			—			2,154			7,649			—			7,649
Four Seasons Washington, D.C.		4,507			—			4,507			12,666			—			12,666
Hyatt Regency La Jolla		413			(202	)		211			3,477			(1,704	)		1,773
InterContinental Chicago		6,232			(3,054	)		3,178			17,127			(8,392	)		8,735
InterContinental Miami		1,826			—			1,826			9,354			—			9,354
Westin St. Francis		6,863			—			6,863			20,318			—			20,318
Total Meetings & Business Hotels		27,549			(3,256	)		24,293			79,928			(10,096	)		69,832
Ocean Front Resorts:
Four Seasons Punta Mita Resort		3,351			—			3,351			11,823			—			11,823
Hotel del Coronado		5,629			(3,128	)		2,501			36,500			(20,270	)		16,230
Loews Santa Monica Beach Hotel		2,329			—			2,329			11,574			—			11,574
Ritz-Carlton Half Moon Bay		1,851			—			1,851			7,505			—			7,505
Ritz-Carlton Laguna Niguel		(166	)		—			(166	)		8,882			—			8,882
Total Ocean Front Resorts		12,994			(3,128	)		9,866			76,284			(20,270	)		56,014
European Hotels:
Marriott Hamburg		1,681			(1,296	)		385			6,051			(5,833	)		218
Marriott London Grosvenor Square		4,212			—			4,212			14,293			—			14,293
Total European Hotels		5,893			(1,296	)		4,597			20,344			(5,833	)		14,511
Non-Core Assets:
Paris Marriott Champs Elysees		3,753			(4,122	)		(369	)		19,611			(16,358	)		3,253
Marriott Lincolnshire Resort		1,115			—			1,115			683			—			683
Total Non-Core Assets		4,868			(4,122	)		746			20,294			(16,358	)		3,936
	$	51,304		$	(11,802	)	$	39,502		$	196,850		$	(52,557	)	$	144,293
	% of QTR Comparable EBITDA									% of YTD Comparable EBITDA
Meetings & Business Hotels		61	%								48	%
Ocean Front Resorts		25	%								39	%
European Hotels		12	%								10	%
Non-Core Assets		2	%								3	%
Total		100	%								100	%

25

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

2011 Guidance

(in millions, except per share data)

	Year Ended December 31, 2011
Operational Guidance	Low Range			High Range
Same Store North American Total RevPAR growth (a)		7.0	%		9.0	%
Same Store North American RevPAR growth (a)		9.0	%		9.0	%
(a)    Includes North American hotels which are consolidated in the Company’s financial results, but excludes the Fairmont          Scottsdale.
	Year Ended December 31, 2011
Comparable FFO Guidance	Low Range			High Range
Net loss attributable to common shareholders	$	(126.5	)	$	(111.6	)
Depreciation and amortization		123.8			123.8
Realized portion of deferred gain on sale leasebacks		(1.6	)		(1.6	)
Deferred tax expense on realized portion of deferred gain on sale leasebacks		0.4			0.4
Noncontrolling interests		(0.6	)		(0.5	)
Adjustments from consolidated affiliates		(5.2	)		(5.2	)
Adjustments from unconsolidated affiliates		7.1			7.1
Comparable FFO	$	(2.6	)	$	12.4
Comparable FFO per diluted share	$	(0.02	)	$	0.07
	Year Ended December 31, 2011
Comparable EBITDA Guidance	Low Range			High Range
Net loss attributable to common shareholders	$	(126.5	)	$	(111.6	)
Depreciation and amortization		125.0			125.0
Interest expense		96.3			96.3
Income taxes		3.3			3.3
Noncontrolling interests		(0.6	)		(0.5	)
Adjustments from consolidated affiliates		(8.0	)		(8.0	)
Adjustments from unconsolidated affiliates		16.2			16.2
Preferred shareholder dividends		30.9			30.9
Realized portion of deferred gain on sale leasebacks		(1.6	)		(1.6	)
Comparable EBITDA	$	135.0		$	150.0

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