COMPANY CONTACTS:

Diane Morefield

EVP & Chief Financial Officer

Strategic Hotels & Resorts

(312) 658-5740

Jonathan Stanner

Vice President, Capital Markets & Treasurer

Strategic Hotels & Resorts

(312) 658-5746

Net loss attributable to common shareholders was $15.9 million, or $0.09 per diluted share, in the fourth quarter of 2011, compared with a net loss attributable to common shareholders of $134.8 million, or $0.89 per diluted share, in the fourth quarter of 2010.

Comparable funds from operations (Comparable FFO) was $0.11 per diluted share in the fourth quarter of 2011 compared with $0.03 per diluted share in the prior year period. During the quarter, a $10.7 million one-time gain was recorded related to the successful preferred equity tender completed on December 19, 2011. Excluding this adjustment, Comparable FFO would have been $0.05 per diluted share.

Comparable EBITDA was $39.9 million in the fourth quarter of 2011 compared with $34.5 million in the prior year period, a 15.9 percent increase.

United States same store revenue per available room (RevPAR) increased 10.1 percent in the fourth quarter of 2011, driven by a 6.5 percent increase in average daily rate (ADR) and a 2.2 percentage point increase in occupancy, compared to the fourth quarter 2010. Total revenue per available room (Total RevPAR) increased 10.0 percent with non-rooms revenue increasing by 9.9 percent between periods.

North American same store RevPAR increased 9.8 percent in the fourth quarter of 2011, driven by a 6.4 percent increase in ADR and a 2.1 percentage point increase in occupancy, compared to the fourth quarter 2010. Total RevPAR increased 9.0 percent with non-rooms revenue increasing by 8.1 percent between periods.

Total North American RevPAR, which includes results from the recently acquired Four Seasons Jackson Hole and Four Seasons Silicon Valley hotels, increased 10.2 percent in the fourth quarter of 2011, driven by a 6.7 percent increase in ADR and a 2.2 percentage point increase in occupancy, compared to the fourth quarter 2010. Total RevPAR increased 9.5 percent with non-rooms revenue increasing by 8.8 percent between periods.

European RevPAR decreased 0.1 percent (a 0.6 percent increase in constant dollars) in the fourth quarter of 2011, driven by a 0.1 percent decline in ADR (a 0.5 percent increase in constant dollars) and no change in occupancy between periods. European Total RevPAR increased 2.3 percent in the fourth quarter over the prior year period (2.6 percent in constant dollars).

United States same store EBITDA margins contracted 50 basis points in the fourth quarter of 2011 compared to the fourth quarter of 2010. North American same store EBITDA margins contracted 80 basis points between periods. Excluding certain one-time property tax refunds of $4.9 million received during the fourth quarter of 2010, United States same store and North American same store EBITDA margins expanded 290 and 240 basis points, respectively, in the fourth quarter.

Net loss attributable to common shareholders was $23.7 million, or $0.13 per diluted share compared with a net loss attributable to common shareholders of $261.9 million, or $2.13 per diluted share in the prior year.

Comparable FFO was $0.20 per diluted share compared with $0.05 per diluted share in the prior year period. During the fourth quarter of 2011, a $10.7 million one-time gain was recorded related to the successful preferred equity tender completed on December 19, 2011. Excluding this adjustment, Comparable FFO would have been $0.14 per diluted share.

Comparable EBITDA was $154.8 million compared with $132.0 million in the prior year period, a 17.2 percent increase.

United States same store RevPAR increased 12.7 percent, driven by a 7.0 percent increase in ADR and a 3.6 percentage point increase in occupancy, compared to the full year 2010. Total RevPAR increased 11.3 percent with non-rooms revenue increasing by 9.7 percent between years.

North American same store RevPAR increased 11.0 percent, driven by a 5.8 percent increase in ADR and a 3.4 percentage point increase in occupancy, compared to the full year 2010. Total RevPAR increased 9.6 percent with non-rooms revenue increasing by 8.0 percent between years.

Total North American RevPAR increased 11.0 percent, driven by a 5.8 percent increase in ADR and a 3.3 percentage point increase in occupancy, compared to the full year 2010. Total RevPAR increased 9.6 percent with non-rooms revenue increasing by 8.0 percent between years.

European RevPAR increased 8.5 percent (3.8 percent in constant dollars), driven by a 7.0 percent increase in ADR (2.4 percent increase in constant dollars) and a 1.1 percentage point increase in occupancy between years. European Total RevPAR increased 8.2 percent in between years (3.6 percent in constant dollars).

United States same store EBITDA margins expanded 220 basis points and North American EBITDA margins expanded 160 basis points compared to the full year 2010. Excluding certain one-time property tax refunds of $4.9 million received during the fourth quarter of 2010, United States same store and North American same store EBITDA margins expanded 320 and 240 basis points, respectively, compared to the full year 2010.

In December, the Company closed on the purchase of an aggregate of 3,247,507 shares of preferred stock consisting of 1,922,273 shares of Series C stock and 984,625 shares of Series B stock at a purchase price of $26.50 per share and 340,609 shares of Series A stock at a purchase price of $26.70 per share. In addition, the Company announced the payment of 12 quarters of accrued and unpaid

dividends through the end of December 31, 2011 to shareholders of record as of June 15, 2012, payable on June 29, 2012, contingent upon the Company’s ability to meet the Maryland Dividend Requirement on the payment date. Total accrued dividends of approximately $72.5 million have been recorded on the balance sheet as distributions payable.

In July, the Company closed a $145.0 million limited recourse loan secured by the InterContinental Chicago hotel. The loan bears interest at a fixed rate of 5.61 percent and has a ten-year term.

In July, the Company closed a $130.0 million limited recourse loan secured by the Four Seasons Washington, D.C. hotel. The loan bears interest at a floating rate of LIBOR plus 315 basis points and has a three-year initial term with two, one-year extension options, upon satisfaction of certain financial and other conditions.

In July, the Company closed a $110.0 million limited recourse loan secured by the Loews Santa Monica Beach hotel. The loan bears interest at a floating rate of LIBOR plus 385 basis points and has a four-year initial term with three, one-year extension options, upon satisfaction of certain financial and other conditions.

In July, the Company closed an $85.0 million limited recourse loan secured by the InterContinental Miami hotel. The loan bears interest at a floating rate of LIBOR plus 350 basis points and has a five-year initial term with two, one-year extension options, upon satisfaction of certain financial and other conditions.

In June, the Company closed a new $300.0 million secured, revolving credit facility with an accordion feature allowing for additional borrowing capacity up to $400.0 million, subject to certain conditions. The facility’s interest rate is based upon a leverage-based pricing grid ranging from LIBOR plus 275 basis points to LIBOR plus 375 basis points. The facility matures in three years with a one-year extension option available to the Company, subject to certain conditions. The facility is secured by the Four Seasons Punta Mita Resort, the Marriott Lincolnshire Resort, the Ritz-Carlton Half Moon Bay hotel, and the Ritz-Carlton Laguna Niguel hotel.

In June, the Company closed on the acquisition of the 49 percent interest in the InterContinental Chicago hotel previously held by an affiliate of the Government of Singapore Investment Corporation (GIC). As part of the transaction, the Company also acquired an additional 2.5 percent ownership interest in the Hyatt Regency La Jolla hotel, giving the Company a 53.5% controlling ownership interest in that hotel. Total consideration was $90.2 million, which included the issuance of 10.8 million shares at a price of $6.51 per share and $19.4 million of cash which includes working capital and post-closing adjustments of $0.5 million.

In June, the Company closed on an agreement to recapitalize the Fairmont Scottsdale Princess hotel in a newly formed joint venture with Walton Street Capital, L.L.C. (Walton Street Capital). The recapitalization included an amendment and extension of the existing CMBS first mortgage debt through December 31, 2013, with the option for a second extension through April 9, 2015 upon satisfaction of certain terms and conditions. The new joint venture retired the hotel’s $40.0 million mezzanine debt and total debt on the property was reduced from $180.0 million to $133.0 million. The

Company’s total investment in the joint venture was approximately $34.9 million, which includes its pro rata share of funding for the development of a new 23,000 square foot ballroom and adjoining meeting space at the hotel. The Company and Walton Street Capital are equal partners in the joint venture, with the Company serving as the managing member and continuing to serve as the property’s asset manager.

In April, the Company sold its leasehold interest in the Paris Marriott Champs Elysees hotel for consideration of €29.2 million ($41.6 million). As part of the transaction, the Company received €11.9 million ($16.9 million) related to the release of the security deposit and other closing adjustments. The Company expects to receive an additional €1.6 million ($2.1 million).

In March, the Company closed on an agreement to acquire the Four Seasons Jackson Hole and Four Seasons Silicon Valley hotels from The Woodbridge Company Limited (Woodbridge) in exchange for an aggregate of 15.2 million shares of common stock at an agreed upon issuance price of $6.08 per share, or approximately $92.4 million. In addition, the Company concurrently privately placed and issued an additional 8.0 million shares of common stock at a price of $6.25 per share to an affiliate of Woodbridge resulting in gross proceeds of $50.0 million.

In February, the Company completed a recapitalization of the joint venture that owns the Hotel del Coronado hotel. Under terms of the agreement, a new joint venture was established among the Company, Blackstone Real Estate Advisors (Blackstone) and KSL Resorts. As part of the recapitalization, which valued the hotel at approximately $590 million, the Company invested approximately $57 million to retain a 34.3 percent ownership position in the joint venture and remained as asset manager of the hotel. Blackstone is a 60 percent owner and general partner of the joint venture. A $425 million debt financing was originated by Deutsche Bank.

In January, the Company sold its 50 percent interest in BuyEfficient, an electronic purchasing platform, for $9.0 million.

Same Store North American RevPAR and Total RevPAR growth in the range of 6.0 percent to 8.0 percent and 5.0 percent to 7.0 percent, respectively. Same Store operating metrics include North American hotels which are included in the Company’s consolidated financial results but excludes the Four Seasons Jackson Hole and Four Seasons Silicon Valley hotels, which were acquired in 2011;

Same Store North American EBITDA margins between 22.1 percent and 22.9 percent or 100 basis points to 175 basis points expansion;

Corporate G&A expenses in the range of $22.0 to $24.0 million, excluding any expense related to the Company’s Value Creation Plan;

Consolidated interest expense in the range of $85 million to $90 million, including approximately $12 million of non-cash interest expense, primarily related to swap financing amortization costs;

Hyatt Regency La Jolla mortgage, which matures in September 2012, successfully restructured or refinanced and ownership of 53.5 percent is retained through year-end;

Preferred dividend expense of $24.2 million;

Capital expenditures totaling approximately $65 million to $75 million, including spending of $35 million from property furniture, fixtures and equipment (FF&E) reserves and an additional $30 million to $40 million of owner-funded spending; and

No additional planned acquisition, disposition or capital raising activity.

Net Loss Attributable to Common Shareholders

Depreciation and Amortization

Interest Expense

Income Taxes

Non-controlling Interests

Adjustments from Consolidated Affiliates

Adjustments from Unconsolidated Affiliates

Preferred Shareholder Dividends

Realized Portion of Deferred Gain on Sale Leasebacks

Adjustment for Value Creation Plan

Comparable EBITDA

Net Loss Attributable to Common Shareholders

Depreciation and Amortization

Realized Portion of Deferred Gain on Sale Leasebacks

Non-controlling Interests

Adjustments from Consolidated Affiliates

Adjustments from Unconsolidated Affiliates

Adjustment for Value Creation Plan

Comparable FFO

Comparable FFO per Diluted Share

Revenues:

Rooms

Food and beverage

Other hotel operating revenue

Lease revenue

Total revenues

Operating Costs and Expenses:

Rooms

Food and beverage

Other departmental expenses

Management fees

Other hotel expenses

Lease expense

Depreciation and amortization

Impairment losses and other charges

Corporate expenses

Total operating costs and expenses

Operating income (loss)

Interest expense

Interest income

Loss on early extinguishment of debt

Loss on early termination of derivative financial instruments

Equity in (losses) earnings of unconsolidated affiliates

Foreign currency exchange loss

Other income, net

Loss before income taxes and discontinued operations

Income tax expense

Loss from continuing operations

Income from discontinued operations, net of tax

Net loss

Net loss attributable to the noncontrolling interests in SHR’s operating partnership

Net loss (income) attributable to the noncontrolling interests in consolidated affiliates

Net loss attributable to SHR

Preferred shareholder dividends

Net loss attributable to SHR common shareholders

Basic and Diluted Loss Per Share:

Loss from continuing operations attributable to SHR common shareholders

Income from discontinued operations attributable to SHR common shareholders

Net loss attributable to SHR common shareholders

Weighted average common shares outstanding

Assets

Investment in hotel properties, net

Goodwill

Intangible assets, net of accumulated amortization of $8,915 and $6,536

Assets held for sale

Investment in unconsolidated affiliates

Cash and cash equivalents

Restricted cash and cash equivalents

Accounts receivable, net of allowance for doubtful accounts of $1,698 and $1,922

Deferred financing costs, net of accumulated amortization of $3,488 and $15,756

Deferred tax assets

Prepaid expenses and other assets

Total assets

Liabilities, Noncontrolling Interests and Equity

Liabilities:

Mortgages and other debt payable

Bank credit facility

Liabilities of assets held for sale

Accounts payable and accrued expenses

Distributions payable

Deferred tax liabilities

Total liabilities

Noncontrolling interests in SHR’s operating partnership

Equity:

SHR’s shareholders’ equity:

8.50% Series A Cumulative Redeemable Preferred Stock ($0.01 par value; 4,148,141 and 4,488,750 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $130,148 and $131,296 in the aggregate)

8.25% Series B Cumulative Redeemable Preferred Stock ($0.01 par value; 3,615,375 and 4,600,000 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $112,755 and $133,975 in the aggregate)

8.25% Series C Cumulative Redeemable Preferred Stock ($0.01 par value; 3,827,727 and 5,750,000 shares issued and outstanding; liquidation preference $25.00 per share plus accrued distributions and $119,377 and $167,469 in the aggregate)

Common shares ($0.01 par value; 250,000,000 common shares authorized; 185,627,199 and 151,305,314 common shares issued and outstanding)

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total SHR’s shareholders’ equity

Noncontrolling interests in consolidated affiliates

Total equity

Total liabilities, noncontrolling interests and equity

Capitalization

Common shares outstanding

Operating partnership units outstanding

Restricted stock units outstanding

Value Creation Plan units outstanding

Combined shares and units outstanding

Common stock price at end of period

Common equity capitalization

Preferred equity capitalization (at $25.00 face value)

Consolidated debt

Pro rata share of unconsolidated debt

Pro rata share of consolidated debt

Cash and cash equivalents

Total enterprise value

Net Debt / Total Enterprise Value

Preferred Equity / Total Enterprise Value

Common Equity / Total Enterprise Value

Hotel

Paris Marriott Champs Elysees (Paris Marriott)

InterContinental Prague

Hotel operating revenues

Operating costs and expenses

Depreciation and amortization

Total operating costs and expenses

Operating income

Interest expense

Interest income

Loss on early extinguishment of debt

Foreign currency exchange (loss) gain

Other income, net

Income tax benefit (expense)

Gain on sale

Income from discontinued operations

Total revenues (100%)

Property EBITDA (100%)

Equity in (losses) earnings of unconsolidated affiliates (SHR ownership)

Property EBITDA

Depreciation and amortization

Interest expense

Gain on extinguishment of debt

Other expenses, net

Income taxes

Equity in (losses) earnings of unconsolidated affiliates

EBITDA Contribution

Equity in (losses) earnings of unconsolidated affiliates

Depreciation and amortization

Interest expense

Gain on extinguishment of debt

Income taxes

EBITDA Contribution

FFO Contribution

Equity in (losses) earnings of unconsolidated affiliates

Depreciation and amortization

Gain on extinguishment of debt

FFO Contribution

Total revenues (100%)

Property EBITDA (100%)

Equity in (losses) earnings of unconsolidated affiliates (SHR ownership)

Property EBITDA

Depreciation and amortization

Interest expense

Gain on extinguishment of debt

Other expenses, net

Income taxes

Equity in (losses) earnings of unconsolidated affiliates

EBITDA Contribution

Equity in (losses) earnings of unconsolidated affiliates

Depreciation and amortization

Interest expense

Gain on extinguishment of debt

Income taxes

EBITDA Contribution

FFO Contribution

Equity in (losses) earnings of unconsolidated affiliates

Depreciation and amortization

Gain on extinguishment of debt

FFO Contribution

Debt

Hotel del Coronado

CMBS Mortgage and Mezzanine

Cash and cash equivalents