STRATEGIC HOTELS & RESORTS, INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - 8-K - STRATEGIC HOTELS & RESORTS, INC	a331158kpressrelease.htm
EX-99.1 - EXHIBIT 99.1 ATTACHMENTS - STRATEGIC HOTELS & RESORTS, INC	a33115exhibit991b-pressrel.htm
EX-99.1 - EXHIBIT 99.1 - STRATEGIC HOTELS & RESORTS, INC	a33115exhibit991a-pressrel.htm

Exhibit 99.2

Strategic Hotels & Resorts, Inc.

Supplemental Financial Information

March 31, 2015




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

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
Investments in Unconsolidated Affiliates	9
Leasehold Information	10
Non-GAAP Financial Measures	11
Reconciliation of Net Income Attributable to SHR Common Shareholders to EBITDA and Comparable EBITDA	12
Reconciliation of Net Income Attributable to SHR Common Shareholders to Funds From Operations (FFO), FFO—Fully Diluted and Comparable FFO	13
Debt Summary	14

PORTFOLIO DATA
Portfolio at March 31, 2015	16
Seasonality by Geographic Region	17
Operating Statistics by Geographic Region	18
Selected Financial and Operating Information by Property	20
Reconciliation of Property EBITDA to EBITDA	25
Reconciliation of Property EBITDA to Comparable EBITDA	27
2015 Guidance	28




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

CORPORATE INFORMATION

The Company

Strategic Hotels & Resorts, Inc. is an industry-leading owner and asset manager of high-end hotels and resorts. We own interests in or lease a quality portfolio of upper upscale and luxury hotels and resorts primarily in desirable United States locations. Our portfolio is currently made up of 18 properties totaling 8,325 rooms. We own interests in or lease 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, Inc. 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:

Corporate Headquarters:

200 West Madison Street, Suite 1700

Chicago, IL 60606

(312) 658-5000

Company Contacts:

Diane M. Morefield

Executive Vice President, Chief Financial Officer

(312) 658-5000

Jonathan P. Stanner

Senior Vice President, Capital Markets, Acquisitions and Treasurer

(312) 658-5000




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Board of Directors

Raymond L. Gellein, Jr.

Chairman of the Board, Chief Executive Officer and President

Sheli Z. Rosenberg

Lead Independent Director

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

David W. Johnson

Director

Richard D. Kincaid

Director

Sir David M.C. Michels

Director

Eugene F. Reilly

Director




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Officers

Raymond L. Gellein, Jr.

President and Chief Executive Officer

Diane M. Morefield

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

Richard J. Moreau

Executive Vice President, Chief Operating Officer

Paula C. Maggio

Executive Vice President, Secretary & General Counsel

John K.T. Barrett

Senior Vice President, Asset Management

Thomas G. Healy

Senior Vice President, Asset Management

David R. Hogin, Jr.

Senior Vice President, Asset Management

Robert T. McAllister

Senior Vice President, Tax

Patricia A. Needham

Senior Vice President, Legal

Eric D. Hassberger

Senior Vice President, Asset Management and Acquisitions

Jonathan P. Stanner

Senior Vice President, Capital Markets, Acquisitions and Treasurer

Gregory A. Brenner

Vice President, Controller

Carly P. Edgar

Vice President, Asset Management

James L. Porter

Vice President, Internal Audit

George T. Stowers

Vice President, Design and Construction

Bryce D. White

Vice President, Information Technology




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Equity Research Coverage




Firm	Analyst	Telephone

Bank of America Merrill Lynch	Andrew Didora	(646) 855-2924

Deutsche Bank North America	Chris Woronka	(212) 250-4486

Green Street Advisors	Lukas Hartwich	(949) 640-8780

Evercore ISI	Rich Hightower	(212) 752-0886

JMP Securities	Robert LaFleur	(415) 835-8944

J.P. Morgan Securities	Jonathan Mohraz	(212) 622-1111

MLV & Co	Ryan Meliker	(212) 542-5872

Raymond James & Associates	William Crow	(727) 567-2594

Wells Fargo Securities, LLC	Jeffrey Donnelly	(617) 603-4262

Credit Suisse	Ian Weissman	(212) 538-6889

RBC Capital Markets	Wes Golladay	(440) 715-2650

Strategic Hotels & Resorts, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Strategic Hotels & Resorts, Inc.'s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of Strategic Hotels & Resorts, Inc. or its management. Strategic Hotels & Resorts, Inc. does not by its reference here imply its endorsement of, or concurrence with, such information, conclusions or recommendations.




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Financial Highlights

Supplemental Financial Data

(in thousands, except per share information)



	March 31, 2015
	Pro Rata Share			Consolidated
Capitalization
Shares of common stock outstanding	275,314			275,314
Operating partnership units outstanding	794			794
Restricted stock units outstanding	1,418			1,418
Combined shares and units outstanding	277,526			277,526
Common stock price at end of period	$	12.43		$	12.43
Common equity capitalization	$	3,449,648		$	3,449,648
Consolidated debt	1,856,036			1,856,036
Pro rata share of consolidated debt	(151,746		)	—
Cash and cash equivalents	(240,156		)	(240,156		)
Total enterprise value	$	4,913,782		$	5,065,528
Net Debt / Total Enterprise Value	29.8		%	31.9		%
Common Equity / Total Enterprise Value	70.2		%	68.1		%



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Consolidated Statements of Operations

(in thousands, except per share data)



	Three Months Ended March 31,
	2015			2014
Revenues:
Rooms	$	162,864		$	103,100
Food and beverage	123,469			70,017
Other hotel operating revenue	37,907			20,239
Lease revenue	1,031			1,299
Total revenues	325,271			194,655
Operating Costs and Expenses:
Rooms	47,865			33,707
Food and beverage	83,074			54,603
Other departmental expenses	84,724			53,579
Management fees	11,439			5,778
Other hotel expenses	15,613			15,678
Lease expense	1,034			1,258
Depreciation and amortization	37,664			22,205
Corporate expenses	8,268			7,193
Total operating costs and expenses	289,681			194,001
Operating income	35,590			654
Interest expense	(22,785		)	(18,274		)
Interest income	101			27
Equity in earnings of unconsolidated affiliates	—			4,445
Foreign currency exchange (loss) gain	(116		)	2
Gain on consolidation of affiliates	—			78,117
Other (expenses) income, net	(157		)	423
Income before income taxes and discontinued operations	12,633			65,394
Income tax expense	(219		)	(39		)
Income from continuing operations	12,414			65,355
Income from discontinued operations, net of tax	—			158,435
Net Income	12,414			223,790
Net income attributable to the noncontrolling interests in SHR's operating partnership	(37		)	(849		)
Net loss attributable to the noncontrolling interests in consolidated affiliates	3,434			4,041
Net Income Attributable to SHR	15,811			226,982
Preferred shareholder dividends	—			(9,824		)
Net Income Attributable to SHR Common Shareholders	$	15,811		$	217,158
Basic Income Per Common Share:
Income from continuing operations attributable to SHR common shareholders	$	0.06		$	0.29
Income from discontinued operations attributable to SHR common shareholders	—			0.76
Net income attributable to SHR common shareholders	$	0.06		$	1.05
Weighted average shares of common stock outstanding	273,831			206,983
Diluted Income Per Common Share:
Income from continuing operations attributable to SHR common shareholders	$	0.04		$	0.25
Income from discontinued operations attributable to SHR common shareholders	—			0.72
Net income attributable to SHR common shareholders	$	0.04		$	0.97
Weighted average shares of common stock outstanding	282,792			219,368



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015 and December 31, 2014

Consolidated Balance Sheets

(in thousands, except share data)



	March 31, 2015			December 31, 2014
Assets
Investment in hotel properties, net	$	3,175,420		$	2,828,400
Goodwill	38,128			38,128
Intangible assets, net of accumulated amortization of $9,404 and $7,288	93,874			94,324
Investment in unconsolidated affiliates	22,850			22,850
Cash and cash equivalents	240,156			442,613
Restricted cash and cash equivalents	89,985			81,510
Accounts receivable, net of allowance for doubtful accounts of $832 and $492	68,141			51,382
Deferred financing costs, net of accumulated amortization of $8,709 and $7,814	10,559			11,440
Deferred tax assets	1,954			1,729
Prepaid expenses and other assets	49,944			46,781
Total assets	$	3,791,011		$	3,619,157
Liabilities, Noncontrolling Interests and Equity
Liabilities:
Mortgages payable, net of discount	$	1,855,014		$	1,705,778
Accounts payable and accrued expenses	251,412			224,505
Preferred stock redemption liability	—			90,384
Distributions payable	—			104
Deferred tax liabilities	46,137			46,137
Total liabilities	2,152,563			2,066,908
Commitments and contingencies
Noncontrolling interests in SHR’s operating partnership	9,865			10,500
Equity:
SHR’s shareholders’ equity:
Common stock ($0.01 par value per share; 350,000,000 shares of common stock authorized; 275,313,504 and 267,435,799 shares of common stock issued and outstanding)	2,753			2,674
Additional paid-in capital	2,449,084			2,348,284
Accumulated deficit	(874,658		)	(890,469		)
Accumulated other comprehensive loss	(10,054		)	(13,032		)
Total SHR’s shareholders’ equity	1,567,125			1,447,457
Noncontrolling interests in consolidated affiliates	61,458			94,292
Total equity	1,628,583			1,541,749
Total liabilities, noncontrolling interests and equity	$	3,791,011		$	3,619,157



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Discontinued Operations

The results of operations of hotels sold prior to January 1, 2015 are classified as discontinued operations and segregated in the consolidated statements of operations for all periods presented. Subsequent to January 1, 2015, only disposals that represent a strategic shift that has a major effect on the Company's results of operations would qualify as discontinued operations. The following hotels were sold during the three months ended March 31, 2014:



Hotel	Location	Date Sold	Sales Proceeds			Gain on sale
Four Seasons Punta Mita Resort and La Solana land parcel	Punta Mita, Mexico	February 28, 2014	$	206,867,000		$	63,879,000
Marriott London Grosvenor Square	London, England	March 31, 2014	$	209,407,000	(a)	$	92,889,000


(a)	There was an outstanding balance of £67,301,000 ($112,150,000) on the mortgage loan secured by the Marriott London Grosvenor Square hotel, which was repaid at the time of closing. The net proceeds we received were $97,257,000.

The following is a summary of income from discontinued operations for the three months ended March 31, 2014 (in thousands):



	Three Months Ended March 31, 2014
Hotel operating revenues	$	17,767
Operating costs and expenses	11,485
Depreciation and amortization	1,275
Total operating costs and expenses	12,760
Operating income	5,007
Interest expense	(1,326		)
Interest income	2
Loss on early extinguishment of debt	(272		)
Foreign currency exchange gain	32
Income tax expense	(833		)
Gain on sale, net of tax	155,825
Income from discontinued operations	$	158,435



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Investments in Unconsolidated Affiliates

(in thousands)

We had a 36.4% equity ownership interest in the Hotel del Coronado that we accounted for using the equity method of accounting until we acquired the remaining 63.6% equity ownership interest not previously owned by us on June 11, 2014. We had a 50.0% equity ownership interest in the Fairmont Scottsdale Princess hotel that we accounted for using the equity method of accounting until we acquired the remaining 50.0% equity ownership interest not previously owned by us on March 31, 2014. For purposes of this analysis, the operating results reflect the 36.4% equity ownership interest we held in the Hotel del Coronado prior to June 11, 2014 and the 50.0% equity ownership interest we held in the Fairmont Scottsdale Princess hotel prior to March 31, 2014.



	Three Months Ended March 31, 2014
	Hotel del Coronado			Fairmont Scottsdale Princess			Total
Total revenues (100%)	$	34,042		$	35,006		$	69,048
Property EBITDA (100%)	$	9,559		$	13,191		$	22,750
Equity in (losses) earnings of unconsolidated affiliates (SHR ownership)
Property EBITDA	$	3,351		$	6,595		$	9,946
Depreciation and amortization	(1,955		)	(1,551		)	(3,506		)
Interest expense	(1,900		)	(168		)	(2,068		)
Other expenses, net	(4		)	(30		)	(34		)
Income taxes	230			—			230
Equity in (losses) earnings of unconsolidated affiliates	$	(278	)	$	4,846		$	4,568
EBITDA Contribution:
Equity in (losses) earnings of unconsolidated affiliates	$	(278	)	$	4,846		$	4,568
Depreciation and amortization	1,955			1,551			3,506
Interest expense	1,900			168			2,068
Income taxes	(230		)	—			(230		)
EBITDA Contribution	$	3,347		$	6,565		$	9,912
FFO Contribution:
Equity in (losses) earnings of unconsolidated affiliates	$	(278	)	$	4,846		$	4,568
Depreciation and amortization	1,955			1,551			3,506
FFO Contribution	$	1,677		$	6,397		$	8,074




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Leasehold Information

(in thousands)



	Three Months Ended March 31,
	2015			2014
Marriott Hamburg:
Property EBITDA	$	1,239		$	1,512
Revenue (a)	$	1,031		$	1,299

Lease expense	(1,034		)	(1,258		)
Less: Deferred gain on sale-leaseback	(44		)	(53		)
Adjusted lease expense	(1,078		)	(1,311		)

Comparable EBITDA contribution from leasehold	$	(47	)	$	(12	)



Security Deposit (b):	March 31, 2015		December 31, 2014
Marriott Hamburg	$	2,039	$	2,299


(a)	For the three months ended March 31, 2015 and 2014, Revenue for the Marriott Hamburg hotel represents lease revenue.


(b)	The security deposit is recorded in prepaid expenses and other assets on the consolidated balance sheets.




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Non-GAAP Financial Measures

We present five non-GAAP financial measures 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.

EBITDA represents net income (or 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; (iii) depreciation and amortization; and (iv) preferred stock dividends. EBITDA also excludes interest expense, income taxes and depreciation and amortization of our unconsolidated affiliates. EBITDA is presented on a full participation basis, which means we have assumed conversion of all redeemable noncontrolling interests of our operating partnership into our common stock. We believe this treatment of noncontrolling interests provides 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 certain other charges that are highly variable from year to year. 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 compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT 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, impairment of depreciable real estate, real estate-related depreciation and amortization, and our portion of these items related to unconsolidated affiliates. We also present FFO—Fully Diluted, which is FFO plus income or loss on income attributable to redeemable noncontrolling interests in our operating partnership. 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 on non-depreciable assets, foreign currency exchange gains or losses and certain other charges that are highly variable from year to year. 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, excluding shares related to the JW Marriott Essex House Hotel put option. Dilutive securities may include shares granted under share-based compensation plans and operating partnership units. No effect is shown for securities that are anti-dilutive.

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 income (or 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 income (or 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 income (or loss) attributable to SHR common shareholders.




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

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

(in thousands)



	Three Months Ended March 31,
	2015			2014
Net income attributable to SHR common shareholders	$	15,811		$	217,158
Depreciation and amortization—continuing operations	37,664			22,205
Depreciation and amortization—discontinued operations	—			1,275
Interest expense—continuing operations	22,785			18,274
Interest expense—discontinued operations	—			1,326
Income taxes—continuing operations	219			39
Income taxes—discontinued operations	—			833
Income taxes—sale of assets	—			20,451
Noncontrolling interests	37			849
Adjustments from consolidated affiliates	(3,837		)	(3,675		)
Adjustments from unconsolidated affiliates	—			5,290
Preferred shareholder dividends	—			9,824
EBITDA	72,679			293,849
Realized portion of deferred gain on sale-leaseback	(44		)	(53		)
Gain on consolidation of affiliates	—			(78,117		)
Gain on sale of assets—discontinued operations	—			(176,276		)
Loss on early extinguishment of debt—discontinued operations	—			272
Foreign currency exchange loss (gain)—continuing operations (a)	116			(2		)
Foreign currency exchange gain—discontinued operations (a)	—			(32		)
Hotel acquisition costs	720			—
Non-cash interest rate derivative activity	116			—
Amortization of below market hotel management agreement	513			—
Activist shareholder costs	—			1,533
Comparable EBITDA	$	74,100		$	41,174


(a)	Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries.




		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Reconciliation of Net Income 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 March 31,
	2015			2014
Net income attributable to SHR common shareholders	$	15,811		$	217,158
Depreciation and amortization—continuing operations	37,664			22,205
Depreciation and amortization—discontinued operations	—			1,275
Corporate depreciation	(128		)	(123		)
Gain on sale of assets, net of tax—discontinued operations	—			(155,825		)
Gain on consolidation of affiliates	—			(78,117		)
Realized portion of deferred gain on sale-leaseback	(44		)	(53		)
Noncontrolling interests adjustments	(110		)	(98		)
Adjustments from consolidated affiliates	(2,243		)	(1,835		)
Adjustments from unconsolidated affiliates	—			3,506
FFO	50,950			8,093
Redeemable noncontrolling interests	147			947
FFO—Fully Diluted	51,097			9,040
Non-cash interest rate derivative activity—continuing operations	3,229			(2,294		)
Loss on early extinguishment of debt—discontinued operations	—			272
Foreign currency exchange loss (gain)—continuing operations (a)	116			(2		)
Foreign currency exchange gain—discontinued operations (a)	—			(32		)
Amortization of debt discount	650			—
Amortization of below market hotel management agreement	513			—
Hotel acquisition costs	720			—
Activist shareholder costs	—			1,533
Excess of redemption liability over carrying amount of redeemed preferred stock	—			3,709
Comparable FFO	$	56,325		$	12,226
Comparable FFO per fully diluted share	$	0.20		$	0.06
Weighted average diluted shares (b)	276,930			209,583


(a)	Foreign currency exchange gains or losses applicable to certain balance sheet items held by foreign subsidiaries.


(b)	Excludes shares related to the JW Marriott Essex House Hotel put option.



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Debt Summary

(dollars in thousands)



Debt	Interest Rate		Spread (a)	Loan Amount			Maturity (b)
Fairmont Scottsdale Princess (c)	0.54	%	36 bp	$	117,000		April 2015
Westin St. Francis	6.09	%	Fixed	209,588			June 2017
Fairmont Chicago	6.09	%	Fixed	93,124			June 2017
Hyatt Regency La Jolla (d)	4.50% / 10.00%		400 bp / Fixed	89,239			December 2017
Hotel del Coronado (e)	3.83	%	365 bp	475,000			March 2018
Bank credit facility	2.18	%	200 bp	—			April 2019
Four Seasons Washington, D.C.	2.43	%	225 bp	120,000			June 2019
JW Marriott Essex House Hotel	3.13	%	295 bp	225,000			January 2020
Loews Santa Monica Beach Hotel	2.73	%	255 bp	120,000			May 2021
InterContinental Chicago	5.61	%	Fixed	142,085			August 2021
Montage Laguna Beach (f)	3.90	%	Fixed	150,000			August 2021
InterContinental Miami	3.99	%	Fixed	115,000			September 2024
				1,856,036
Unamortized discount (f)				(1,022		)
				$	1,855,014


(a)	Spread over LIBOR (0.18% at March 31, 2015). See (d) below for interest on the Hyatt Regency La Jolla loan.


(b)	Includes extension options.

(c)

On March 31, 2014, we acquired the remaining 50.0% equity interest in the Fairmont Scottsdale Princess hotel, resulting in the Fairmont Scottsdale Princess hotel becoming wholly-owned by us. In connection with the acquisition, we consolidated the Fairmont Scottsdale Princess hotel and became fully obligated under the entire mortgage loan secured by the Fairmont Scottsdale Princess hotel. We recorded the mortgage loan at its fair value, which included a debt discount, which is being amortized as additional interest expense over the maturity period of the loan. In April 2015, we repaid the outstanding balance of this loan.


(d)	Interest on $72,000,000 is payable at an annual rate of LIBOR plus 4.00%, subject to a 0.50% LIBOR floor, and interest on $17,239,000 is payable at an annual fixed rate of 10.00%.


(e)	On June 11, 2014, we acquired the remaining 63.6% equity interest in the Hotel del Coronado, resulting in the Hotel del Coronado becoming wholly-owned by us. In connection with the acquisition, we consolidated the Hotel del Coronado and became fully obligated under the entire outstanding balance of the mortgage and mezzanine loans secured by the Hotel del Coronado.


(f)	On January 29, 2015, we closed on the acquisition of the Montage Laguna Beach resort. In connection with the acquisition, we assumed the outstanding balance of the mortgage loan secured by the Montage Laguna Beach resort. We recorded the mortgage loan at its fair value, which included a debt discount, which is being amortized as additional interest expense over the maturity period of the loan.



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Debt Summary (Continued)

(in thousands)

Future scheduled debt principal payments (including extension options) are as follows:



Years ending December 31,	Amounts
2015 (remainder)	$	118,439
2016	2,031
2017	394,123
2018	477,299
2019	122,433
Thereafter	741,711
	1,856,036
Unamortized discount	(1,022		)
	$	1,855,014

Percent of fixed rate debt	39.1		%
Weighted average interest rate (g)	3.98		%
Weighted average maturity of fixed rate debt (debt with maturity of greater than one year)	4.66

(g) Excludes the amortization of deferred financing costs.



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

Portfolio Data

Portfolio at March 31, 2015

(dollars in thousands)



Hotel	Location	Number of Rooms	% of Total Rooms		1st QTR 2015 Property EBITDA			% of 1st QTR 2015 Property EBITDA
United States:
Westin St. Francis	San Francisco, CA	1,195	14	%	$	11,921		15	%
InterContinental Chicago	Chicago, IL	792	10	%	(1,838		)	(2	)%
Hotel del Coronado	Coronado, CA	757	9	%	14,047			17	%
Fairmont Chicago	Chicago, IL	687	8	%	(1,717		)	(2	)%
Fairmont Scottsdale Princess	Scottsdale, AZ	649	8	%	16,747			20	%
InterContinental Miami	Miami, FL	641	8	%	10,723			13	%
JW Marriott Essex House Hotel (a)	New York, NY	511	6	%	(1,053		)	(1	)%
Hyatt Regency La Jolla (b)	La Jolla, CA	417	5	%	2,353			3	%
Ritz-Carlton Laguna Niguel	Dana Point, CA	396	5	%	7,940			10	%
Marriott Lincolnshire Resort	Lincolnshire, IL	389	5	%	(300		)	—	%
Loews Santa Monica Beach Hotel	Santa Monica, CA	347	5	%	2,841			3	%
Ritz-Carlton Half Moon Bay	Half Moon Bay, CA	261	3	%	1,597			2	%
Montage Laguna Beach (c)	Laguna Beach, CA	249	3	%	3,307			4	%
Four Seasons Washington, D.C.	Washington, D.C.	222	3	%	1,992			2	%
Four Seasons Resort Scottsdale at Troon North	Scottsdale, AZ	210	3	%	5,382			7	%
Four Seasons Silicon Valley	East Palo Alto, CA	200	2	%	2,456			3	%
Four Seasons Jackson Hole	Teton Village, WY	124	1	%	5,134			6	%
Total United States		8,047	98	%	81,532			100	%
European:
Marriott Hamburg (d)	Hamburg, Germany	278	2	%	N/A			N/A
		8,325	100	%	81,532			100	%


(a)	We own a 51.0% controlling interest in the entity that owns the JW Marriott Essex House Hotel and consolidate this hotel for reporting purposes.


(b)	We own a 53.5% controlling interest in the entity that owns the Hyatt Regency La Jolla hotel and consolidate this hotel for reporting purposes.


(c)	On January 29, 2015, we closed on the acquisition of the Montage Laguna Beach resort. We have included the results of this hotel in the quarterly Property EBITDA and percentage of Property EBITDA calculation above only for our period of ownership.


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



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Four Quarters Ended March 31, 2015

Seasonality by Geographic Region

(dollars in thousands)

The Total United States portfolio is derived from our hotel portfolio at March 31, 2015, consisting of all properties located in the United States, including 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel. We have two acquisition properties, the Four Seasons Resort Scottsdale at Troon North, which was acquired on December 9, 2014, and the Montage Laguna Beach resort, which was acquired on January 29, 2015. The three months ended December 31, 2014 results include payments pursuant to the JW Marriott Essex House Hotel NOI guarantee of $5.8 million.



Total United States Hotels (as of March 31, 2015)
Acquisition property revenues - 2 Properties and 459 Rooms
Same store property revenues - 15 Properties and 7,588 Rooms

	Three Months Ended
	June 30, 2014			September 30, 2014			December 31, 2014			March 31, 2015			Total
Acquisition property revenues (a)	$	—		$	—		$	2,539		$	31,043		$	33,582
Acquisition property revenues (b)	34,971			34,207			29,460			$	5,361		103,999
Same store property revenues	308,648			303,878			308,938			293,198			1,214,662
Total pro forma revenues	$	343,619		$	338,085		$	340,937		$	329,602		$	1,352,243
Total property seasonality %	25.4		%	25.0		%	25.2		%	24.4		%	100.0		%

(a) Acquisition property revenues for our period of ownership

(b) Acquisition property revenues prior to our period of ownership



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Operating Statistics by Geographic Region

The Same Store United States portfolio is derived from our hotel portfolio at March 31, 2015, consisting of all properties located in the United States, including 100% of the operations of the Hotel del Coronado and the Fairmont Scottsdale Princess hotel. Adjustments to the same store portfolios are the exclusion of the Four Seasons Resort Scottsdale at Troon North and the Montage Laguna Beach resort for the three months ended March 31, 2015 and 2014.

Same Store United States Hotels (as of March 31, 2015)

15 Properties

7,588 Rooms



	Three Months Ended March 31,
	2015			2014			Change
ADR	$	300.26		$	284.66		5.5	%
Average Occupancy	72.1		%	68.8		%	3.3	pts
RevPAR	$	216.61		$	195.96		10.5	%
Total RevPAR	$	429.33		$	384.39		11.7	%
Property EBITDA Margin	24.8		%	20.2		%	4.6	pts

Same Store United States Hotels - Adjusted (a) (as of March 31, 2015)

15 Properties

7,588 Rooms



	Three Months Ended March 31,
	2015			2014			Change
ADR	$	300.26		$	281.02		6.8	%
Average Occupancy	72.1		%	68.8		%	3.3	pts
RevPAR	$	216.61		$	193.45		12.0	%
Total RevPAR	$	429.33		$	386.90		11.0	%
Property EBITDA Margin	25.0		%	20.0		%	5.0	pts

(a) For the three months ended March 31, 2015, property EBITDA margins exclude the amortization of the below market hotel management agreement related to the Hotel del Coronado of $0.5 million. For the three months ended March 31, 2014, the statistics have been modified to take into account certain adjustments related to the subsequent adoption of the Uniform System of Accounts for the Lodging Industry, Eleventh Revised Edition (the "USALI Eleventh Revised Edition").



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Operating Statistics by Geographic Region (Continued)

The Total United States portfolio is derived from our hotel portfolio at March 31, 2015, consisting of all properties located in the United States, including 100% of the operations of the Hotel del Coronado, the Fairmont Scottsdale Princess hotel, the Four Seasons Resort Scottsdale at Troon North and the Montage Laguna Beach resort, including periods prior to full ownership, for the three months ended March 31, 2015 and 2014.

Total United States Hotels (as of March 31, 2015)

17 Properties

8,047 Rooms



	Three Months Ended March 31,
	2015			2014			Change
ADR	$	313.71		$	296.62		5.8	%
Average Occupancy	72.7		%	69.5		%	3.2	pts
RevPAR	$	227.97		$	206.10		10.6	%
Total RevPAR	$	455.11		$	407.49		11.7	%
Property EBITDA Margin	24.8		%	20.2		%	4.6	pts

Total United States Hotels - Adjusted (b) (as of March 31, 2015)

17 Properties

8,047 Rooms



	Three Months Ended March 31,
	2015			2014			Change
ADR	$	313.71		$	292.49		7.3	%
Average Occupancy	72.7		%	69.5		%	3.2	pts
RevPAR	$	227.97		$	203.22		12.2	%
Total RevPAR	$	455.11		$	410.47		10.9	%
Property EBITDA Margin	25.0		%	20.1		%	4.9	pts

(b) For the three months ended March 31, 2015, property EBITDA margins exclude the amortization of the below market hotel management agreement related to the Hotel del Coronado of $0.5 million. For the three months ended March 31, 2014, the statistics have been modified to take into account certain adjustments related to the subsequent adoption of the USALI Eleventh Revised Edition.



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

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 ended March 31, 2015 and 2014. Property EBITDA reflects property net operating income or loss plus depreciation and amortization. The following financial and operating information for the three months ended March 31, 2014 is unadjusted for changes resulting from the adoption of the USALI Eleventh Revised Edition. The information in the following tables includes the amortization of the below market hotel management agreement related to the Hotel del Coronado of $0.5 million for the three months ended March 31, 2015.



	Three Months Ended March 31,
UNITED STATES HOTELS:	2015			2014			Change
FAIRMONT CHICAGO
Selected Financial Information:
Total revenues	$	9,430		$	8,498		11.0		%
Property EBITDA	$	(1,717	)	$	(2,140	)	19.8		%
Selected Operating Information:
Rooms	687			687			—
Average occupancy	48.2		%	45.9		%	2.3		pts
ADR	$	166.12		$	160.55		3.5		%
RevPAR	$	80.11		$	73.73		8.7		%
Total RevPAR	$	152.51		$	137.43		11.0		%

FAIRMONT SCOTTSDALE PRINCESS
Selected Financial Information:
Total revenues	$	42,220		$	35,006		20.6		%
Property EBITDA	$	16,747		$	13,191		27.0		%
Selected Operating Information:
Rooms	649			649			—
Average occupancy	86.9		%	82.4		%	4.5		pts
ADR	$	353.38		$	323.33		9.3		%
RevPAR	$	307.05		$	266.44		15.2		%
Total RevPAR	$	722.82		$	599.31		20.6		%

FOUR SEASONS JACKSON HOLE
Selected Financial Information:
Total revenues	$	17,503		$	15,870		10.3		%
Property EBITDA	$	5,134		$	4,508		13.9		%
Selected Operating Information:
Rooms	124			124			—
Average occupancy	78.7		%	75.6		%	3.1		pts
ADR	$	678.59		$	701.46		(3.3	)	%
RevPAR	$	534.24		$	530.43		0.7		%
Total RevPAR	$	1,568.37		$	1,422.07		10.3		%

FOUR SEASONS RESORT SCOTTSDALE AT TROON NORTH
Selected Financial Information (This table includes financial information only for our period of ownership):
Total revenues	$	15,883		N/A			N/A
Property EBITDA	$	5,382		N/A			N/A
Selected Operating Information (This table includes statistical information only for our period of ownership. For the three months ended March 31, 2014, average occupancy was 84.8%, ADR was $459.68, RevPAR was $389.75 and Total RevPAR was $775.16.):
Rooms	210			N/A			N/A
Average occupancy	86.0		%	N/A			N/A
ADR	$	518.58		N/A			N/A
RevPAR	$	445.73		N/A			N/A
Total RevPAR	$	840.35		N/A			N/A



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014



	Three Months Ended March 31,
	2015			2014			Change
FOUR SEASONS SILICON VALLEY
Selected Financial Information:
Total revenues	$	9,856		$	8,770		12.4		%
Property EBITDA	$	2,456		$	1,795		36.8		%
Selected Operating Information:
Rooms	200			200			—
Average occupancy	77.3		%	70.6		%	6.7		pts
ADR	$	415.25		$	380.03		9.3		%
RevPAR	$	320.94		$	268.30		19.6		%
Total RevPAR	$	547.53		$	487.20		12.4		%

FOUR SEASONS WASHINGTON, D.C.
Selected Financial Information:
Total revenues	$	14,788		$	14,392		2.8		%
Property EBITDA	$	1,992		$	1,904		4.6		%
Selected Operating Information:
Rooms	222			222			—
Average occupancy	62.4		%	63.8		%	(1.4	)	pts
ADR	$	529.88		$	510.91		3.7		%
RevPAR	$	330.61		$	326.13		1.4		%
Total RevPAR	$	740.12		$	720.33		2.7		%

HOTEL DEL CORONADO
Selected Financial Information (Amounts below are 100% of operations, of which SHR owns 100% and 36.4% as of March 31, 2015 and 2014, respectively):
Total revenues	$	37,210		$	34,042		9.3		%
Property EBITDA	$	14,047		$	9,559		47.0		%
Selected Operating Information:
Rooms	757			757			—
Average occupancy	71.5		%	62.6		%	8.9		pts
ADR	$	352.34		$	354.25		(0.5	)	%
RevPAR	$	251.94		$	221.73		13.6		%
Total RevPAR	$	546.16		$	499.66		9.3		%

HYATT REGENCY LA JOLLA
Selected Financial Information:
Total revenues	$	10,459		$	6,970		50.1		%
Property EBITDA	$	2,353		$	191		1,131.9		%
Selected Operating Information:
Rooms	417			419			(2	)
Average occupancy	79.0		%	50.0		%	29.0		pts
ADR	$	184.47		$	179.97		2.5		%
RevPAR	$	145.71		$	89.94		62.0		%
Total RevPAR	$	278.68		$	184.83		50.8		%



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014



	Three Months Ended March 31,
	2015			2014			Change
INTERCONTINENTAL CHICAGO
Selected Financial Information:
Total revenues	$	10,707		$	12,094		(11.5	)	%
Property EBITDA	$	(1,838	)	$	(688	)	(167.2	)	%
Selected Operating Information:
Rooms	792			792			—
Average occupancy	55.7		%	63.1		%	(7.4	)	pts
ADR	$	146.50		$	140.70		4.1		%
RevPAR	$	81.65		$	88.79		(8.0	)	%
Total RevPAR	$	150.22		$	169.67		(11.5	)	%

INTERCONTINENTAL MIAMI
Selected Financial Information:
Total revenues	$	25,591		$	23,241		10.1		%
Property EBITDA	$	10,723		$	9,350		14.7		%
Selected Operating Information:
Rooms	641			641			—
Average occupancy	89.7		%	92.2		%	(2.5	)	pts
ADR	$	274.79		$	257.51		6.7		%
RevPAR	$	246.50		$	237.47		3.8		%
Total RevPAR	$	443.59		$	402.85		10.1		%

JW MARRIOTT ESSEX HOUSE HOTEL
Selected Financial Information:
Total revenues	$	17,691		$	16,887		4.8		%
Property EBITDA	$	(1,053	)	$	(479	)	(119.8	)	%
Selected Operating Information:
Rooms	511			511			—
Average occupancy	75.2		%	75.3		%	(0.1	)	pts
ADR	$	347.56		$	353.83		(1.8	)	%
RevPAR	$	261.38		$	266.50		(1.9	)	%
Total RevPAR	$	384.67		$	367.19		4.8		%

LOEWS SANTA MONICA BEACH HOTEL
Selected Financial Information:
Total revenues	$	12,600		$	13,621		(7.5	)	%
Property EBITDA	$	2,841		$	3,660		(22.4	)	%
Selected Operating Information:
Rooms	347			342			5
Average occupancy	78.8		%	88.4		%	(9.6	)	pts
ADR	$	346.93		$	341.16		1.7		%
RevPAR	$	273.51		$	301.54		(9.3	)	%
Total RevPAR	$	403.46		$	442.54		(8.8	)	%



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014



	Three Months Ended March 31,
	2015			2014			Change
MARRIOTT LINCOLNSHIRE RESORT
Selected Financial Information:
Total revenues	$	6,647		$	6,318		5.2		%
Property EBITDA	$	(300	)	$	(638	)	53.0		%
Selected Operating Information:
Rooms	389			389			—
Average occupancy	54.4		%	50.2		%	4.2		pts
ADR	$	140.37		$	132.74		5.7		%
RevPAR	$	76.37		$	66.65		14.6		%
Total RevPAR	$	189.85		$	180.47		5.2		%

MONTAGE LAGUNA BEACH
No table has been provided since we did not own the property for the entire periods presented.

RITZ-CARLTON HALF MOON BAY
Selected Financial Information:
Total revenues	$	13,752		$	12,833		7.2		%
Property EBITDA	$	1,597		$	1,192		34.0		%
Selected Operating Information:
Rooms	261			261			—
Average occupancy	55.4		%	60.8		%	(5.4	)	pts
ADR	$	411.36		$	364.79		12.8		%
RevPAR	$	227.78		$	221.62		2.8		%
Total RevPAR	$	585.43		$	546.30		7.2		%

RITZ-CARLTON LAGUNA NIGUEL
Selected Financial Information:
Total revenues	$	24,250		$	19,624		23.6		%
Property EBITDA	$	7,940		$	5,520		43.8		%
Selected Operating Information:
Rooms	396			396			—
Average occupancy	74.4		%	67.4		%	7.0		pts
ADR	$	394.05		$	360.62		9.3		%
RevPAR	$	293.33		$	242.88		20.8		%
Total RevPAR	$	680.41		$	550.62		23.6		%

WESTIN ST. FRANCIS
Selected Financial Information:
Total revenues	$	40,496		$	34,237		18.3		%
Property EBITDA	$	11,921		$	5,997		98.8		%
Selected Operating Information:
Rooms	1,195			1,195			—
Average occupancy	83.0		%	76.4		%	6.6		pts
ADR	$	279.75		$	245.01		14.2		%
RevPAR	$	232.26		$	187.10		24.1		%
Total RevPAR	$	376.53		$	318.34		18.3		%



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014



	Three Months Ended March 31,
	2015			2014			Change
EUROPEAN HOTEL:
MARRIOTT HAMBURG
Selected Financial Information:
Total revenues	$	4,153		$	5,150		(19.4	)	%
Property EBITDA	$	1,239		$	1,512		(18.1	)	%
Selected Operating Information:
Rooms	278			278			—
Average occupancy	78.9		%	83.7		%	(4.8	)	pts
ADR	$	155.52		$	176.79		(12.0	)	%
RevPAR	$	122.77		$	147.99		(17.0	)	%
Total RevPAR	$	165.99		$	205.82		(19.4	)	%



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Reconciliation of Property EBITDA to EBITDA

(in thousands)



	Three Months Ended March 31,
	2015						2014
Hotel	Property EBITDA			EBITDA			Property EBITDA			EBITDA
Fairmont Chicago	$	(1,717	)	$	(1,717	)	$	(2,140	)	$	(2,140	)
Fairmont Scottsdale Princess (a)	16,747			16,747			13,191			—
Four Seasons Jackson Hole	5,134			5,134			4,508			4,508
Four Seasons Resort Scottsdale at Troon North (b)	5,382			5,382			—			—
Four Seasons Silicon Valley	2,456			2,456			1,795			1,795
Four Seasons Washington, D.C.	1,992			1,992			1,904			1,904
Hotel del Coronado (a)	14,047			14,047			9,559			—
Hyatt Regency La Jolla	2,353			2,353			191			191
InterContinental Chicago	(1,838		)	(1,838		)	(688		)	(688		)
InterContinental Miami	10,723			10,723			9,350			9,350
JW Marriott Essex House Hotel	(1,053		)	(1,053		)	(479		)	(479		)
Loews Santa Monica Beach Hotel	2,841			2,841			3,660			3,660
Marriott Lincolnshire Resort	(300		)	(300		)	(638		)	(638		)
Montage Laguna Beach (c)	—			3,307			—			—
Ritz-Carlton Half Moon Bay	1,597			1,597			1,192			1,192
Ritz-Carlton Laguna Niguel	7,940			7,940			5,520			5,520
Westin St. Francis	11,921			11,921			5,997			5,997
Marriott Hamburg (d)	1,239			(3		)	1,512			41
	$	79,464		$	81,529		$	54,434		$	30,213
Adjustments:
Corporate expenses				(8,268		)				(7,193		)
Interest income				101						27
Equity in earnings of unconsolidated affiliates				—						4,445
Foreign currency exchange (loss) gain				(116		)				2
Gain on consolidation of affiliate				—						78,117
Other (expenses) income, net				(157		)				423
Income from discontinued operations				—						158,435
Depreciation expense—discontinued operations				—						1,275
Interest expense—discontinued operations				—						1,326
Income taxes—discontinued operations				—						833
Income taxes—sale of assets				—						20,451
Noncontrolling interest in consolidated affiliates				3,434						4,041
Adjustments from consolidated affiliates				(3,837		)				(3,675		)
Adjustments from unconsolidated affiliates				—						5,290
Other adjustments				(7		)				(161		)
EBITDA				$	72,679					$	293,849

(a)

On March 31, 2014, we acquired the remaining ownership interest in the Fairmont Scottsdale Princess hotel and consolidated the property. On June 11, 2014, we acquired the remaining ownership interest in the Hotel del Coronado and consolidated the property. EBITDA for the three months ended March 31, 2015 represents revenue and expenses generated by these properties subsequent to the consolidation of these properties. Prior to the acquisitions on March 31, 2014 and June 11, 2014, we accounted for these properties under the equity method of accounting. EBITDA related to our interest in these properties while they were accounted for under the equity method of accounting is reflected in adjustments from unconsolidated affiliates. Property EBITDA represents 100% of revenue and expenses generated by these properties.


(b)	On December 9, 2014 we purchased the Four Seasons Resort Scottsdale at Troon North. We have not included the results of this hotel in Property EBITDA for the three months ended March 31, 2014 above since we did not own the property during that period.


(c)	On January 29, 2015, we purchased the Montage Laguna Beach. We have not included the results of this hotel in Property EBITDA for the three months ended March 31, 2015 and 2014 above since we did not own the property for the entire periods.


(d)	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.



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		Three Months Ended March 31, 2015 and 2014

Reconciliation of Property EBITDA to Comparable EBITDA

(in thousands)



	Three Months Ended March 31, 2015
	Property EBITDA			Adjustments			Comparable EBITDA
Urban Hotels:
Fairmont Chicago	$	(1,717	)				$	(1,717	)
Four Seasons Silicon Valley	2,456						2,456
Four Seasons Washington, D.C.	1,992						1,992
Hyatt Regency La Jolla	2,353			(1,038		)	1,315
InterContinental Chicago	(1,838		)				(1,838		)
InterContinental Miami	10,723						10,723
JW Marriott Essex House Hotel	(1,053		)	634			(419		)
Westin St. Francis	11,921						11,921
Total Urban Hotels	24,837			(404		)	24,433
Resorts:
Fairmont Scottsdale Princess	16,747						16,747
Four Seasons Jackson Hole	5,134						5,134
Four Seasons Resort Scottsdale at Troon North	5,382						5,382
Hotel del Coronado	14,047			513			14,560
Loews Santa Monica Beach Hotel	2,841						2,841
Marriott Lincolnshire Resort	(300		)				(300		)
Montage Laguna Beach	—			3,307			3,307
Ritz-Carlton Half Moon Bay	1,597						1,597
Ritz-Carlton Laguna Niguel	7,940						7,940
Total Resorts	53,388			3,820			57,208
European Hotel:
Marriott Hamburg	1,239			(1,286		)	(47		)
	$	79,464		$	2,130		$	81,594

	% of QTR Comparable EBITDA
Urban Hotels	30					%
Resorts	70					%
Total	100					%



Total United States Urban Hotels (as of March 31, 2015)
8 Properties
4,665 Rooms
	Three Months Ended March 31,
	2015			2014			Change
ADR	$	265.09		$	249.27		6.3	%
Average Occupancy	71.7		%	68.5		%	3.2	pts
RevPAR	$	190.18		$	170.71		11.4	%
Total RevPAR	$	331.11		$	297.81		11.2	%
Property EBITDA Margin	17.9		%	12.7		%	5.2	pts

Total United States Resorts (as of March 31, 2015) (a)
9 Properties
3,382 Rooms
	Three Months Ended March 31,
	2015			2014			Change
ADR	$	378.76		$	359.88		5.2	%
Average Occupancy	74.0		%	70.9		%	3.1	pts
RevPAR	$	280.10		$	255.01		9.8	%
Total RevPAR	$	626.14		$	559.12		12.0	%
Property EBITDA Margin	29.9		%	25.7		%	4.2	pts

(a) Includes the Four Seasons Resort Scottsdale at Troon North and Montage Laguna Beach, including periods prior to ownership.



		Supplemental Financial Information
Strategic Hotels & Resorts, Inc. and Subsidiaries (SHR)		March 31, 2015

2015 Guidance

(in millions, except per share data)



	Year Ended December 31, 2015
Operational Guidance	Low Range		High Range
Total RevPAR growth	4.5	%	6.5	%
RevPAR growth	6.0	%	8.0	%



	Year Ended December 31, 2015
Comparable EBITDA Guidance	Low Range			High Range
Net Income Attributable to Common Shareholders	$	91.6		$	111.6
Depreciation and Amortization	159.4			159.4
Interest Expense	89.3			89.3
Income Taxes	8.1			8.1
Non-controlling Interests	0.3			0.3
Adjustments from Consolidated Affiliates	5.3			5.3
Gain on Sale of Asset	(37.0		)	(37.0		)
Amortization of Below Market Management Agreement	2.1			2.1
Hotel Acquisition Costs	0.7			0.7
Realized Portion of Deferred Gain on Sale Leasebacks	(0.2		)	(0.2		)
Other Adjustments	0.4			0.4
Comparable EBITDA	$	320.0		$	340.0



	Year Ended December 31, 2015
Comparable FFO Guidance	Low Range			High Range
Net Income Attributable to Common Shareholders	$	91.6		$	111.6
Depreciation and Amortization	158.8			158.8
Non-controlling Interests	0.3			0.3
Adjustments from Consolidated Affiliates	10.3			10.3
Gain on Sale of Asset	(37.0		)	(37.0		)
Interest Rate Swap OCI Amortization	10.4			10.4
Amortization of Loan Discounts	0.8			0.8
Amortization of Below Market Management Agreement	2.1			2.1
Hotel Acquisition Costs	0.7			0.7
Realized Portion of Deferred Gain on Sale Leasebacks	(0.2		)	(0.2		)
Other Adjustments	0.3			0.3
Comparable FFO	$	238.1		$	258.1
Comparable FFO per diluted share	$	0.85		$	0.93

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