Strategic Hotels & Resorts (BEE+C) 8-K Regulation FD Disclosure

Investor Presentation

July 2012

Exhibit 99.1

I.

BEE’s Unique Value Proposition

II.

Company Overview

III.

Industry Update

IV.

Operating Trends

V.

Financial Overview

BEE’s Unique Value Proposition

1

o

The only pure play high-end lodging REIT

o

High-end outperforms the industry in a recovery

o

Industry leading asset management expertise

o

Assets are in pristine condition

o

Embedded organic growth through revenue growth and ROI opportunities

o

Historically low supply growth environment, particularly in BEE markets

o

Replacement cost, excluding land, approximately $700,000 per key

o

Balance sheet positioned for growth

The best investment proposition in the lodging space

2

BEE’s Unique Value Proposition

BEE’s Unique Value Proposition

Proven

Investment

Track Record

Industry Leading

Asset

Management

High-end, Unique

& Irreplaceable

Hotel & Resort

Portfolio

3

Highlights

o

Best portfolio in public markets

o

Locations in high-barrier-to-entry markets

o

City-center and resort destinations

o

World-class amenities

o

No new supply in BEE’s markets

Four Seasons Jackson Hole

Ritz-Carlton Laguna Niguel

InterContinental Chicago

BEE’s Unique Value Proposition

Industry

As

High-end, Unique

& Irreplaceable

Hotel & Resort

Portfolio

4

Highlights

o

Execution of complex and accretive restructurings

o

Assessment and development of ROI projects

o

Recent success in acquiring hotels through

off-market transactions

o

Maximized proceeds through well-timed

asset sales

Hotel del Coronado

Michael Jordan’s Steak House

Fairmont Scottsdale Princess

BEE’s Unique Value Proposition

Proven

Investment

Track Record

5

Industry Leading

Asset

Management

Highlights

o

Highest EBITDA  per room in competitive

set

o

Sustained market share penetration

and revenue growth

o

Implemented cost cutting initiatives

in advance of recession

o

Maintaining fixed cost reductions

in recovery

o

Strong relationships with and rigorous

oversight of brand managers

EBITDA Per Available Room

Annual RevPAR Index

BEE’s Unique Value Proposition

Note:

All

metrics

represent

full-year

2011

results.

BEE

portfolio

reflects

Total

United

States

portfolio

as

of

12/31/2011.

Source:

Public

filings

Source: Smith Travel Research

107.5

108.5

107.0

110.7

113.7

118.1

100

104

108

112

116

120

2007

2008

2009

2010

2011

Q1 2012

6

I.

BEE’s Unique Value Proposition

II.

Company Overview

III.

Industry Update

IV.

Operating Trends

V.

Financial Overview

Company Overview

7

Top-Tier Market Exposure

17

hotels

located

in

primary

gateway

cities

and

high

barrier

to

entry

markets;

including

7,762

rooms

and

840,000

square

feet

of

meeting

space

8

o

InterContinental

Miami

–

Guestroom

renovation

o

InterContinental

Chicago

–

Michael

Jordan’s

Steak

House

o

Four

Seasons

Washington,

D.C.

–

Retail

outlet

renovation

o

Marriott

Lincolnshire

Resort

–

Lobby

renovation

o

Westin

St.

Francis

–

Michael

Mina

Steakhouse

conversion

o

Four

Seasons

Washington,

D.C.

–

Lobby

renovation,

11-room

expansion,

new

restaurant,

63-room

and

suite

renovation

o

Westin

St.

Francis

–

Clock

Bar

o

Fairmont

Chicago

–

ENO

wine

tasting

room,

lobby

renovation,

guestroom

renovation,

new

spa

and

fitness

center

o

Four

Seasons

Punta

Mita

Resort

–

New

lobby

bar

o

Ritz-Carlton

Half

Moon

Bay

–

ENO

wine

tasting

room,

restaurant

and

lounge

renovation,

suite

renovation

Notable 2008

capital projects

Notable 2009

capital projects

Notable 2010

capital projects

Notable 2011

capital projects

Fairmont Chicago Lobby

Four Seasons Washington, D.C. Lobby

Westin St. Francis Michael Mina

Bourbon Steak

InterContinental Miami Guestroom

Portfolio Well-Positioned to Enhance Cash Flow Growth

9

Four Seasons Washington, D.C.

o

ENO Wine Room

o

Retail space optimization

Four Seasons Silicon Valley

o

Qauttro patio renovation

o

Meeting room renovation

Four Seasons Jackson Hole

o

Restaurant re-concept

InterContinental Chicago

o

North tower guestroom renovation

o

Meeting space expansion

o

Michigan Ave. façade optimization

Ritz-Carlton Laguna Niguel

o

35-room fire pit addition

o

Pool deck upgrades

InterContinental Miami

o

Public space revitalization

o

Meeting space expansion

o

Pool deck refurbishment

Fairmont Chicago

o

Meeting space renovation

o

Restaurant re-concept

Westin St. Francis

o

ENO Wine Room

Loews Santa Monica Beach Hotel

o

Exterior / interior upgrade

Significant

ROI

capital

investment

opportunities

within

existing

portfolio;

rigorous

analysis

and

approval

process

for

each

project

Potential Capital Projects in the Pipeline

10

I.

BEE’s Unique Value Proposition

II.

Company Overview

III.

Industry Update

IV.

Operating Trends

V.

Financial Overview

Industry Update

11

o

Lodging demand historically correlates with GDP (~80%) but potential exists for near-term disconnect,

particularly at the high-end

o

Customer

demographics

for

luxury

/

high-end

very

strong

–

corporate

America

and

college

educated

consumers

o

Supply growth remains historically low and development pipeline indicates muted supply for the next

several years

Total U.S. Supply & Demand Change (TTM)

Demand growth exceeds supply growth by 400 bps which should

result in significant ADR growth as recovery continues

Lodging Outlook

12

Source:  Smith Travel Research

Note: Data represents trends within the United States

o

Luxury supply growth was historically lower leading into the recent recession

o

Projects in planning or under construction have decreased significantly

o

No new competitive luxury or upper-upscale supply projected in BEE markets

o

1-2 years estimated time to permit; 3 years estimated time to build a luxury hotel

o

Economic proposition of hotel construction challenging with replacement cost estimated at

over $700,000 per key

Favorable Supply Outlook

Year-Over-Year % Supply Growth

1988 –

Q1 2012

Average: 4.0%

Supply Growth in

BEE Markets = 0.0%

(4%)

(2%)

0%

2%

4%

6%

8%

10%

12%

14%

13

14

Source:  Smith Travel Research and PWC

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Total U.S.

Luxury

Source:  Smith Travel Research

Luxury

Outperformance:

2.2% CAGR

Luxury

Outperformance:

4.1% CAGR

Annual % Change in RevPAR

Quarterly Luxury Room Night Demand (000s)

o

Luxury

hotels

have

experienced

prolonged

RevPAR

growth

following

past

industry

downturns

o

1992

–

2000:

9

consecutive

years

of

annual

luxury

RevPAR

growth

totaling

109%

or

8.5%

annually

o

2002

–

2007:

5

consecutive

years

of

annual

luxury

RevPAR

growth

totaling

48%

or

8.2%

annually

o

Overall

luxury

room

nights

sold

is

at

an

all-time

high;

30%

higher

than

2007

Luxury outperformed Total U.S. hotels

2.0% -

4.0% in previous two downturns

Luxury room night demand

currently at all-time highs

Luxury Hotels Outperform in a Recovery

14

Note:

All

metrics

represent

full-year

2011

results

BEE

portfolio

reflects

Total

United

States

portfolio

as

of

12/31/2011

Source:

Public

filings

BEE delivers industry leading results

BEE Outperforms Competitors

15

o

Total RevPAR is key top-line performance metric

o

Focus on maximizing RevPAR, non-rooms revenue, and yield per square foot

BEE Total Revenue Mix

Peers Total Revenue Mix

Note: All metrics represent the full-year 2011. BEE portfolio reflects the North America Same Store portfolio

Peers include: DRH, HST, LHO, PEB, SHO

Source: Public filings

BEE

revenue

driven

more

heavily

by

non-rooms

revenue

relative

to

peers,

maximizing

yield

per

square

foot

from

our

hotels

BEE Revenue Mix Compared to Peers

54%

36%

10%

Rooms

Other

Food &

Beverage

65%

29%

6%

Rooms

Other

Food &

Beverage

16

36%

21%

10%

27%

6%

40%

20%

9%

26%

5%

17

Note: Statistics represent the full year 2011. Portfolio reflects the North America Same Store portfolio

BEE Occupied Room Nights Mix

BEE Room Revenue Mix

o

Targeted mix of business ~50% / 50% group / transient

o

Group business typically yields higher non-rooms revenue than transient business

43% Group

40% Group

57% Transient

60% Transient

BEE

total

revenue

driven

heavily

by

group

business

and

ancillary

group

spend;

still

significant

capacity

to

grow

group

business

BEE Revenue Mix

Transient - Other

Transient - Negotiated

Group - Association

Group - Corporate

Group - Other

17

BEE

(1)

Peers

Peer margins

@ BEE

Revenue Mix

Revenue

  Rooms

54%

65%

54%

  Food & Beverage

36%

29%

36%

  Other

10%

6%

10%

Total

100%

100%

100%

Departmental Profit Margin

Rooms

71%

73%

73%

Food & Beverage

26%

27%

27%

EBITDA

21%

24%

18%

3% better than peers

(1) Portfolio includes all North American hotels owned for the full year 2011

Peers include:  DRH, HST, LHO, PEB, & SHO

Source: Public filings

BEE’s

margins

significantly

outperform

when

adjusted

for

same

revenue

mix

Industry Leading Operating Margins

18

I.

BEE’s Unique Value Proposition

II.

Company Overview

III.

Industry Update

IV.

Operating Trends

V.

Financial Overview

Operating Trends

19

o

Group pace remains the most reliable forward looking indicator

o

Booking window has shortened forcing more reliance on room nights booked ITYFTY

(“in-the-year-for-the-year”)

Year-Over-Year Group Pace

Assuming similar production as 2011,

group room nights 14% below peak

*2012 production in the year assumes the same production as in 2011

Group room nights on the books for 2012 are up approximately 0.5% compared

to same time last year; ADR up approximately 4.5% compared to 2011 rate

Group room nights on the books for 2013 are up approximately 6% compared

to 2012; ADR up approximately 2% compared to 2012 rate

Group Booking Outlook

20

0

200,000

400,000

600,000

800,000

1,000,000

2007

2008

2009

2010

2011

2012*

Definite through June

Production in the year

Occupancy

ADR

RevPAR

Property EBITDA (in millions)

Note:

Same

store

North

America

portfolio,

excludes:

Hotel

del

Coronado,

Fairmont

Scottsdale

Princess,

Four

Seasons

Jackson

Hole,

Four

Seasons

Silicon

Valley

2012

forecast

assumes

midpoint

of

guidance

range

Operating

performance

improving;

still

below

peak

Embedded Portfolio Growth

21

I.

BEE’s Unique Value Proposition

II.

Company Overview

III.

Industry Update

IV.

Operating Trends

V.

Financial Overview

Financial Overview

22

Raised $665 million in equity:

o

$335 mm secondary offering (May 2010)

o

$145 mm Woodbridge transaction acquiring two

Four Seasons hotels plus PIPE (February 2011)

o

$70 mm equity placement to GIC for share in

InterContinental Chicago (June 2011)

o

$115 mm overnight equity offering (April 2012)

Asset sales:

o

Sold InterContinental Prague for €110.6mm

(December 2010)

o

Sold leasehold position at Marriott Paris Champs-

Elysees for approximately $60 million (April 2011)

o

Sold stake in BuyEfficient for $9mm (January 2011)

Debt repayments:

o

Tendered and fully retired $180mm unsecured

convertible recourse notes (May 2010)

Hotel del Coronado complex restructuring

(February 2011):

o

Negotiated new joint-venture with Blackstone and

KSL

o

Closed new CMBS mortgage financing totaling

$425mm

Accomplishments Since January 1

st

, 2010

23

Fairmont Scottsdale Princess complex restructuring

(June 2011):

o

Negotiated new joint venture structure with Walton

Street Capital

o

Negotiated amendment and extension to CMBS debt

for four years at below market terms

New line of credit (June 2011):

o

Reduced lenders in bank syndicate from 21 banks to 10

banks

o

Achieved three year term with one year extension

Debt refinancings:

o

Six property loans refinanced totaling nearly $800

million

Preferred equity tender (December 2011):

o

Successfully tendered for approximately 22% of

outstanding preferred equity at a 15% discount to par

plus accrued preferred dividends

Reinstatement of preferred equity dividends (June

2012):

o

Paid 14 quarters of preferred equity dividends

Key Stats

(a)(b)

Net Debt/EBITDA

6.7x

Net Debt+Pref /EBITDA

8.4x

Net Debt/TEV

41.1%

Avg. Maturity (yrs)

5.1

Unencumbered assets

2

Corporate liquidity (MM)

$300.0

Mix of Debt

Bank Debt

37.8%

Life Insurance Co.

31.6%

CMBS

30.7%

$115.5

$130.0

$195.0

$52.2

$315.7

$66.5

$145.8

$145.0

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Bank

Life Co.

CMBS

Corporate

$300.0

Capacity

$275.8

$148.9

$124.9

$220.0

$173.5

$614.5

$194.8

$358.0

$0.0

$200.0

$400.0

$600.0

$800.0

$1,000.0

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Bank

Life Co.

CMBS

Corporate

$834.5

$875.2

January 1, 2010

March 31, 2012

BEE’s balance sheet is structured for growth

Strong Recapitalized Balance Sheet ($ in millions)

Note:  Assumes full extension periods for all loans.

(a)

Pro-forma for April 2012 equity offering and June 2012 preferred dividend payment.

(b)

EBITDA reflects mid-point of 2012 guidance range.

Key Stats

Net Debt/EBITDA

14.3x

Net Debt+Pref /EBITDA

17.4x

Net Debt/TEV

76.9%

Avg. Maturity (yrs)

3.4

Unencumbered assets

0

Corporate liquidity (MM)

$105.0

Mix of Debt

Bank Debt

18.5%

Life Insurance Co.

26.6%

CMBS

54.8%

24

(a)

Excludes

Fairmont

Scottsdale

Princess,

Four

Seasons

Jackson

Hole,

Four

Seasons

Silicon

Valley,

and

Hotel

del

Coronado

1

st

Quarter 2012 Results (EBITDA in millions)

2011 Actual

2012 Actual

Operations

(Same Store N.A. Portfolio)

(a)

ADR

$226

5.1%

$238

RevPAR

$146

9.4%

$160

Total RevPAR

$279

7.7%

$301

EBITDA Margins

15.5%

170 bps

17.2%

Corporate Results

Comparable EBITDA

$28.7

15.9%

$33.3

Comparable FFO / share

($0.02)

N/A

$0.02

25

(a)

Portfolio excludes Fairmont Scottsdale Princess, Four Seasons Jackson Hole, Four Seasons Silicon Valley, and Hotel del Coronado

(b)

2011 Comparable FFO / share excludes one-time gain associated with preferred equity tender

2012 Guidance (EBITDA in millions)

2011 Actual

2012 Guidance

Operations

(Same Store N.A. Portfolio)

(a)

RevPAR

$170

6%-8%

$180-$183

Total RevPAR

$314

5%-7%

$330-$336

EBITDA Margins

21.1%

100 - 175bps

22.1%-22.9%

Corporate Results

Comparable EBITDA

$155

7%-16%

$165-$180

Comparable FFO / share

$0.14

50%-107%

$0.21-$0.29

(b)

26

o

The only pure play high-end lodging REIT

o

High-end outperforms the industry in a recovery

o

Industry leading asset management expertise

o

Assets are in pristine condition

o

Embedded organic growth through revenue growth and ROI opportunities

o

Historically low supply growth environment, particularly in BEE markets

o

Replacement cost, excluding land, approximately $700,000 per key

o

Balance sheet positioned for growth

The best investment proposition in the lodging space

BEE’s Unique Value Proposition

27

Except

for

historical

information,

the

matters

discussed

in

this

presentation

are

forward-looking

statements

subject

to

certain

risks

and

uncertainties.

Forward-looking

statements

relate

to

expectations,

beliefs,

projections,

future

plans

and

strategies,

anticipated

events

or

trends,

and

similar

expressions

concerning

matters

that

are

not

historical

facts.

These

forward-looking

statements

are

identified

by

their

use

of

such

terms

and

phrases

such

as

“anticipate,”

“believe,”

“could,”

“estimate,”

“expect,”

“intend,”

“may,”

“plan,”

“predict,”

“project,”

“should,”

“will,”

“continue”

and

other

similar

terms

and

phrases,

including

references

to

assumptions

and

forecasts

of

future

results.

Forward-looking

statements

are

not

guarantees

of

future

performance.

Actual

results

could

differ

materially

from

the

Company’s

projections.

Factors

that

may

contribute

to

these

differences

include,

but

are

not

limited

to

the

following:

the

effects

of

the

recent

global

economic

recession

upon

business

and

leisure

travel

and

the

hotel

markets

in

which

the

Company

invests;

the

Company’s

liquidity

and

refinancing

demands;

the

Company’s

ability

to

obtain

or

refinance

maturing

debt;

the

Company’s

ability

to

maintain

compliance

with

covenants

contained

in

the

Company’s

debt

facilities;

stagnation

or

further

deterioration

in

economic

and

market

conditions,

particularly

impacting

business

and

lei

sure travel

spending

in

the

markets

where

the

Company’s

hotels

operate

and

in

which

the

Company

invests,

including

luxury

and

upper

upscale

product;

general

volatility

of

the

capital

markets

and

the

market

price

of

the

Company’s

shares

of

common

stock;

availability

of

capital;

the

Company’s

ability

to

dispose

of

properties

in

a

manner

consistent

with

the

Company’s

investment

strategy

and

liquidity

needs;

hostilities

and

security

concerns,

including

future

terrorist

attacks,

or

the

apprehension

of

hostilities,

in

each

case

that

affect

travel

within

or

to

the

United

States,

Mexico,

Germany,

England

or

other

countries

where

the

Company

invests;

difficulties

in

identifying

properties

to

acquire

and

completing

acquisitions;

the

Company’s

failure

to

maintain

effective

internal

control

over

financial

reporting

and

disclosure

controls

and

procedures;

risks

related

to

natural

disasters;

increases

in

interest

rates

and

operating

costs,

including

insurance

premiums

and

real

property

taxes;

contagious

disease

outbreaks,

such

as

the

H1N1

virus

outbreak;

delays

and

cost-overruns

in

construction

and

development;

marketing

challenges

associated

with

entering

new

lines

of

business

or

pursuing

new

business

strategies;

the

Company’s

failure

to

maintain

the

Company’s

status

as

a

REIT;

changes

in

the

competitive

environment

in

the

Company’s

industry

and

the

markets

where

the

Company

invests;

changes

in

real

estate

and

zoning

laws

or

regulations;

legislative

or

regulatory

changes,

including

changes

to

laws

governing

the

taxation

of

REITS;

changes

in

generally

accepted

accounting

principles,

policies

and

guidelines;

and

litigation,

judgments

or

settlements.

Additional

risks

are

discussed

in

the

Company’s

filings

with

the

Securities

and

Exchange

Commission,

including

those

appearing

under

the

heading

“Item

1A.

Risk

Factors”

in

the

Company’s

most

recent

Form

10-K

and

subsequent

Form

10-Qs.

Although

the

Company

believes

the

expectations

reflected

in

such

forward-looking

statements

are

based

on

reasonable

assumptions,

it

can

give

no

assurance

that

its

expectations

will

be

attained.

The

forward-looking

statements

are

made

as

of

the

date

of

this

press

release,

and

the

Company

undertakes

no

obligation

to

publicly

update

or

revise

any

forward-looking

statement,

whether

as

a

result

of

new

information,

future

events

or

otherwise,

except

as

required

by

law.

Disclaimer

28

Non-GAAP to GAAP Reconciliations

29

Reconciliation of Net Debt / EBITDA

($ in 000s)

YE 2009

(a)

1Q 2012

(b)(c)

Consolidated debt

$1,658,745

$1,046,128

Pro rata share of unconsolidated debt

282,825

212,275

Pro rata share of consolidated debt

(107,065)

(45,548)

Cash and cash equivalents

(116,310)

(58,205)

Net Debt

$1,718,195

$1,154,650

Comparable EBITDA

$119,953

$172,500

Net Debt / EBITDA

14.3x

6.7x

(a)  All figures taken from year-end 2009 financial statements.

(b)  Comparable EBITDA reflects mid-point of guidance range.

(c)  All figures taken from 1st quarter 2012 financial statements and adjusted

       for April 2012 equity offering and June 2012 preferred dividend payment.

Reconciliation of Net Debt + Preferred Equity / EBITDA

($ in 000s)

YE 2009

(a)

1Q 2012

(b)(c)

   Preferred equity capitalization

$370,236

$289,102

Consolidated debt

1,658,745

1,046,128

Pro rata share of unconsolidated debt

282,825

212,275

Pro rata share of consolidated debt

(107,065)

(45,548)

Cash and cash equivalents

(116,310)

(58,205)

Net Debt + Preferreds

$2,088,431

$1,443,752

Comparable EBITDA

$119,953

$172,500

Net Debt + Preferreds / EBITDA

17.4x

8.4x

(a)  All figures taken from year-end 2009 financial statements.

(b)  Comparable EBITDA reflects mid-point of guidance range.

(c)  All figures taken from 1st quarter 2012 financial statements and adjusted

       for April 2012 equity offering and June 2012 preferred dividend payment.

Reconciliation of Net Debt / TEV

($ in 000s)

YE 2009

(a)

1Q 2012

(b)

Consolidated Debt

$1,658,745

$1,046,128

Pro rata share of unconsolidated debt

282,825

212,275

Pro rata share of consolidated debt

(107,065)

(45,548)

Cash and cash equivalents

(116,310)

(58,205)

Net Debt

$1,718,195

$1,154,650

  Market Capitalization

$144,966

$1,364,370

  Total Debt

1,834,505

1,212,855

  Preferred Equity

370,236

289,102

  Cash and cash equivalents

(116,310)

(58,205)

Total Enterprise Value

$2,233,397

$2,808,122

Net Debt / Enterprise Value

76.9%

41.1%

(a)  All figures taken from year-end 2009 financial statements.

(b)  All figures taken from 1st quarter 2012 financial statements and adjusted

       for April 2012 equity offering and June 2012 preferred dividend payment.

Non-GAAP to GAAP Reconciliations

2012

2011

Net loss attributable to SHR common shareholders

(31,516)

$      

(35,407)

$      

Depreciation and amortization

25,490

30,605

Interest expense

19,605

19,548

Income taxes - continuing operations

465

(1,648)

Income taxes - discontinued operations

-

359

Noncontrolling interests

(117)

(138)

Adjustments from consolidated affiliates

(1,257)

(1,329)

Adjustments from unconsolidated affiliates

6,682

3,890

Preferred shareholder dividends

6,041

7,721

EBITDA

25,393

23,601

Realized portion of deferred gain on sale-leaseback - continuing operations

(51)

(53)

Realized portion of deferred gain on sale-leaseback - discontinued operations

-

(1,152)

Gain on sale of assets - continuing operations

-

(2,640)

Gain on sale of assets -  discontinued operations

-

(14)

Foreign currency exchange loss (gain) - continuing operations (a)

5

(139)

Foreign currency exchange gain - discontinued operations (a)

-

(58)

Adjustment for Value Creation Plan

7,939

9,181

Comparable EBITDA

33,286

$         

28,726

$         

(a)

Foreign currency exchange gains or losses applicable to third-party and inter-company debt and certain balance sheet items held by

foreign subsidiaries.

March 31,

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

(in thousands)

Three Months Ended

30

Non-GAAP to GAAP Reconciliations

2012

2011

Net loss attributable to SHR common shareholders

(31,516)

$      

(35,407)

$        

Depreciation and amortization

25,490

30,605

Corporate depreciation

(265)

(299)

Gain on sale of assets - continuing operations

-

(2,640)

Gain on sale of assets - discontinued operations

-

(14)

Realized portion of deferred gain on sale-leaseback - continuing operations

(51)

(53)

Realized portion of deferred gain on sale-leaseback - discontinued operations

-

(1,152)

Deferred tax expense on realized portion of deferred gain on sale-leasebacks

-

359

Noncontrolling interests adjustments

(133)

(157)

Adjustments from consolidated affiliates

(667)

(1,561)

Adjustments from unconsolidated affiliates

3,764

1,839

FFO

(3,378)

(8,480)

Redeemable noncontrolling interests

16

19

FFO - Fully Diluted

(3,362)

(8,461)

Non-cash mark to market of interest rate swaps

(1,530)

(4,366)

Foreign currency exchange loss (gain) - continuing operations (a)

5

(139)

Foreign currency exchange gain - discontinued operations (a)

-

(58)

Adjustment for Value Creation Plan

7,939

9,181

Comparable FFO

3,052

$           

(3,843)

$             

Comparable FFO per diluted share

0.02

$              

(0.02)

$               

Weighted average diluted shares

188,787

157,333

(a)

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

subsidiaries.

March 31,

Three Months Ended

31

Non-GAAP to GAAP Reconciliations

Operational Guidance

Low Range

High Range

North American same store Total RevPAR growth (a)

5.0%

7.0%

North American same store RevPAR growth (a)

6.0%

8.0%

(a) Includes North American hotels which are consolidated in our financial results, but excludes the Four Seasons Jackson Hole and Four

Seasons Silicon Valley hotels, which were acquired in 2011.

Comparable EBITDA Guidance

Low Range

High Range

Net loss attributable to common shareholders

(79.3)

$             

(64.3)

$             

Depreciation and amortization

105.0

105.0

Interest expense

83.1

83.1

Income taxes

1.1

1.1

Noncontrolling interests

(0.3)

(0.3)

Adjustments from consolidated affiliates

(5.7)

(5.7)

Adjustments from unconsolidated affiliates

28.3

28.3

Preferred shareholder dividends

24.2

24.2

Realized portion of deferred gain on sale-leasebacks

(0.2)

(0.2)

Adjustment for Value Creation Plan

8.8

8.8

  Comparable EBITDA

165.0

$           

180.0

$             

Comparable FFO Guidance

Low Range

High Range

Net loss attributable to common shareholders

(79.3)

$             

(64.3)

$             

Depreciation and amortization

103.8

103.8

Realized portion of deferred gain on sale-leasebacks

(0.2)

(0.2)

Noncontrolling interests

(0.2)

(0.2)

Adjustments from consolidated affiliates

(2.9)

(2.9)

Adjustments from unconsolidated affiliates

15.5

15.5

Adjustment for Value Creation Plan

8.8

8.8

Other adjustments

(1.5)

(1.5)

  Comparable FFO

44.0

$              

59.0

$               

  Comparable FFO per diluted share (b)

0.21

$              

0.29

$               

(b) Comparable FFO per diluted share has been adjusted to reflect the 18.4 million shares issued in the Company's common equity offering which

closed on April 23, 2012.

2012 Guidance

(in millions, except per share data)

Year Ended

December 31, 2012

December 31, 2012

Year Ended

December 31, 2012

Year Ended

32

33

Thank You