Strategic Hotels & Resorts, Inc. Announces Public Offering Of 20M Shares Of Common Stock

Strategic Hotels & Resorts, Inc. (the "Company")

today announced that it is commencing an underwritten public offering of 20,000,000 shares of its common stock (the "Offering"). The Company expects to grant the underwriter a 30-day option to purchase up to 3,000,000 additional shares of common stock to cover over-allotments, if any. J.P. Morgan is acting as the sole book-running manager for the Offering. The underwriter may offer the shares of common stock from time to time in one or more transactions on the New York Stock Exchange, in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices. The Company intends to use the net proceeds from the Offering to fund the acquisition of the Four Seasons Resort Scottsdale at Troon North, to redeem all of the issued and outstanding shares of its 8.25% Series B Cumulative Redeemable Preferred Stock, to fund possible future acquisitions, and for general corporate purposes, including, without limitation, reducing debt and funding capital expenditures and working capital. The offering of the shares will be made under the Company's effective shelf registration statement filed with the Securities Exchange Commission (the "SEC"). A copy of the prospectus supplement and accompanying base prospectus relating to these securities may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 866-803-9204; or by visiting the EDGAR database on the SEC's web site at www.sec.gov. This press release does not constitute an offer to sell or the solicitation of an offer to buy any shares of the Company's common stock, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus and a related prospectus supplement, which have been filed with the SEC.