Agenda. Life Cycle Strategy Performance. Outlook. Summary

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2 Agenda Life Cycle Strategy 2007 Performance Outlook Summary

3 Value Creation Strategy Acquisitions Operations Life Cycle Dispositions Development Collateral Opportunities Driving Long-Term Earnings Growth

4 Portfolio Overview Disciplined Acquisition Process St. Francis Chicago Lincolnshire Resort Chicago London, England Half Moon Bay Scottsdale Washington, D.C. Hamburg, Germany Santa Monica Beach Hotel Laguna Niguel La Jolla Phoenix at Civic Plaza Paris, France Miami Punta Mita Resort Paris, France Prague, Czech Republic Mexico City 20 Hotels and Resorts 9,044 Rooms

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6 \ LOGOf Marriott Grosvenor Square

7 \ LOGOf Four Seasons Washington, D.C.

8 \ LOGOf Ritz-Carlton Half Moon Bay

9 Hotel del Coronado

10 Four Seasons Punta Mita

11 Four Seasons Punta Mita Westin St. Francis

12 Portfolio Overview Disciplined Acquisition Process St. Francis Chicago Lincolnshire Resort Chicago London, England Half Moon Bay Scottsdale Washington, D.C. Hamburg, Germany Santa Monica Beach Hotel Laguna Niguel La Jolla Phoenix at Civic Plaza Paris, France Miami Punta Mita Resort Paris, France Prague, Czech Republic Mexico City 20 Hotels and Resorts 9,044 Rooms

13 Operations Food and beverage systems Labor management systems Management contract compliance Aggressive asset management oversight

14 Case Study Fairmont Scottsdale Princess ($ in millions) Food Cost Savings Program Beverage Cost Savings Program Labor Cost Savings Program 2007 Food Revenues: $ Beverage Revenues: $ Total Revenues: $94.5 Implementation Date: Sept. 06 Implementation Date: Oct. 06 Implementation Date: Sept. 06 Pre-SH&R Food Cost: 25.2% Pre-SH&R Beverage Cost: 17.5% Total Hours Saved: 95 Post-SH&R Food Cost: 22.4% Post-SH&R Beverage Cost: 16.2% Rate Per Saved Hour: $15.34 Food Cost Savings: 2.8% Beverage Cost Savings: 1.3% Labor Cost Savings: $1.5 Food Cost Savings: $0.6 Beverage Cost Savings: $0.1 Labor Cost Savings: $1.5 GOP Margin Improvement: 68 bps GOP Margin Improvement: 12 bps GOP Margin Improvement: 154 bps Total Cost Savings: $2.2 Total GOP Margin Improvement: 234 bps

15 Redevelopment Master Planning Drives Reinvestment Strategy Market research Develop master plan Identify discrete projects Execute in context of cycles

16 Case Study Four Seasons Washington, D.C. Revenue management Expand hotel 11-room expansion Reposition Clientele Michael Mina restaurant ENO wine tasting room Lobby renovation Rooms renovation Closing Gap to NYC Pricing

17 Collateral Opportunities Hotel del Coronado Beach Club Condominium hotel units Retail Four Seasons Punta Mita Expansion land (La Solana, H5) Fractional and whole ownership residential Retail, spa and food and beverage upgrades It s Not Just About the Rooms!

18 Agenda Life Cycle Strategy 2007 Performance

19 2007 Performance North American Same Store Portfolio Total RevPAR $ % $ RevPAR $ % $ GOP Margin 36.1% 220 bps 38.2% FFO / Share $ % $1.64

20 Execution Capital Projects Completed in 2007 Four Seasons Punta Mita Retail InterContinental Chicago ENO Wine Room Four Seasons Punta Mita Hotel del Coronado InterContinental Chicago Ritz-Carlton Half Moon Bay Ritz-Carlton Laguna Niguel Westin St. Francis Marriott Hamburg Marriott Paris Total Delivery: $122 million Project Fitness Center Expansion Coral Suite - 5 Additional Guestrooms Oasis Room & River Pool - 23 Additional Guestrooms Spa & Fitness Center / Beach Club Restaurant Renovation Guest Room Renovation Guestrooms Beach Village - 78 Additional Guestrooms ENO Wine Room Starbucks Guestroom Renovation Suite Renovation ENO Wine Room Suite Conversion - 3 Additional Rooms Meeting Space Renovation Room Renovation Lobby & Bar Renovation Restaurant Renovation

21 Execution Capital Projects Under Construction for Delivery in 2008 Fairmont Chicago Spa & Fitness Center Fairmont Scottsdale Bourbon Steak Restaurant Fairmont Chicago Fairmont Scottsdale Four Seasons D.C. InterContinental Miami Marriott Grosvenor Square Rennaisance Le Parc Ritz-Carlton Half Moon Bay Westin St. Francis Total Delivery: $115 million Spa & Fitness Center ENO Wine Room Lobby Renovation Guestroom Renovation Project General Manager House Conversion Stone Rose Bar / Pool Deck Villa Renovation Bourbon Steak Restaurant Guestroom Renovation Guestroom & Presidential Suite Renovation 11-Room Expansion Spa & Fitness Center Restaurant Renovation and Private Dining Rooms Reception / Lobby / Forecourt Guestroom Renovation & Expansion Concierge Club Addition Health Club Addition Additional Meeting and Office Space Systems, Signage & Re-Flagging Fire & Wine Concept Lighting Wine Room Expansion Soft Goods Renovation Lobby Bar

22 2007 Key Achievements Consistent and reliable guidance $122 million capital investment, 20% returns Settlement and sale of Hyatt Regency New Orleans Beach Village Unit Hotel del Coronado Residential sales at the Hotel del Coronado Capital recycling Operating initiatives Early implementation of cost reduction programs Hotel Le Parc Enhancing platform for growth

23 Composition of Capital Structure ($ in millions) Preferred Equity $370 12% Common Equity $1,291 40% Net Debt $1,541 48% Unsecured $288 17% Secured $1,364 83% Weighted Average Interest Rate: 5.4% Weighted Average Maturity of Fixed Rate Debt: 5.5 years

24 Debt and Swap Maturity Schedules ($ in millions) Debt Maturity $900 $600 $300 $886 $856 $0 $0 $0 $0 $ Thereafter Swap Maturity $900 $600 $300 $0 $0 $0 $0 $100 $225 $ Thereafter Note: Includes $275 million pro rata share of Hotel del Coronado debt and excludes $31.5 million promissory note for H5 land parcel in Punta Mita

25 Agenda Life Cycle Strategy 2007 Performance Outlook

26 2008 Guidance North American Same Store Portfolio 2008 Total RevPAR Growth 2.0% - 5.0% Margin Expansion 0 50 bps FFO / Share Growth 3.9% %

27 Historical RevPAR Growth Luxury % 11.3% RevPAR % Chg Supply % Change Source: Smith Travel Research

28 Agenda Life Cycle Strategy 2007 Performance Outlook Summary

29 Summary Life cycle based strategy Seasoned team and intensive asset management Responsive, proven contingency programs Pipeline of internal growth investments Building Long-Term Earnings Growth

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