Forward-Looking Statements

Transcription

1 LOGOf 1

2 Forward-Looking Statements Statements in this presentation that are not reported financial results or other historical information are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of They include, for example, statements about our business outlook, assessment of market conditions, strategies, future plans, future sales, capital spending tax rates, and occupancy levels or rates. These forward-looking statements are not guarantees of future performance. They are based on management s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The risks and uncertainties relating to the forward-looking statements in this presentation include those described under the caption Risk Factors in Strategic Hotels and Resorts Form 10-K/A filed on May 8, 2006 and from time to time, in Strategic Hotels and Resorts other filings with the Securities and Exchange Commission. 2

3 Strategic Hotels & Resorts Company Highlights

4 Investment Highlights High quality hotel portfolio with intrinsic real estate value Seasoned management team Intensive asset managers Embedded internal growth opportunities Proven acquisition capabilities Life cycle driven capital recycling program Building Long-Term Earnings Growth 4

5 Portfolio Overview St. Francis Chicago Lincolnshire Resort Burbank Airport Chicago Half Moon Bay Washington, D.C. Hamburg, Germany Santa Monica Beach Hotel Laguna Niguel La Jolla Phoenix at Civic Plaza Paris, France New Orleans Miami Punta Mita Resort Prague, Czech Republic Mexico City 19 Hotels and Resorts 9,624 Rooms Note: Pro forma for the acquisition of the Ritz-Carlton Laguna Niguel and divestiture of the Marriott Rancho Las Palmas. 5

6 Seasoned Management Team Title Experience Laurence Geller President, CEO and founder 40 James Mead Chief Financial Officer 20 Richard Moreau EVP, Asset Management 30 Steve Miller SVP, Acquisitions and Development 25 Paul White VP, Asset Manager 25 Dave Hogin VP, Asset Manager 25 Ken Barrett VP, Asset Manager 13 Tim Taylor VP, Capital Projects 25 6

7 Strategic Hotels & Resorts Lodging Trends

8 Encouraging Lodging Fundamentals 12% 4% 3.3% 8% 8.8% 2% 4% Percent change 0% (4%) 3.3% (0.2%) Percent Growth 0% (0.2% ) Luxury (8%) (2%) Supply Demand ADR Supply Demand (12%) (4%) Source: Smith Travel Research 8

9 Strategic Hotels & Resorts Value Creation Strategy

10 Asset Management Strategy Create value-added initiatives Consumer driven orientation Establish operating systems that maximize margins Execution through strong brand relationships 10

11 Investment Strategy Acquire properties that provide cyclical upside Intrinsic real estate value underpinning Opportunity to improve operations Research oriented, consumer driven investment potential 11

12 Four Seasons Punta Mita Completed Projects 5 beachfront suites Zen pool and cabanas Champagne and sushi bar 2007 Activities 24 rooms and 5 beachfront suites Beachfront restaurant, fitness and retail First Quarter Results 17.0% Total RevPAR growth 145 rooms 90 basis point increase in EBITDA margins 12

13 \ LOGOf 13

14 Ritz-Carlton Half Moon Bay Completed Projects Food and beverage expansion Fire and wine concept Implementation of operational systems 2007 Activities Colony Club room upgrade Recreational facility First Quarter Results 18.1% Total RevPAR growth 261 rooms 730 basis point increase in EBITDA margins 14

15 \ LOGOf 15

16 2005 Acquisitions InterContinental Chicago Prime location on Michigan Avenue Retail, wine room and restaurant 34.0% Total RevPAR growth in Q rooms InterContinental Miami New ballroom, meeting space and retail Spa, pool deck and restaurant Condo conversion 12.3% Total RevPAR growth in Q rooms 16

17 2005 Acquisitions Fairmont Chicago Millennium Park and Lakeshore East New fitness center and spa Gold lounge / rooms and retail expansion Condo hotel / fractional ownership 13.2% Total RevPAR growth in Q rooms 17

18 2006 Acquisitions Four Seasons Washington, D.C. Purchase price of $168.9 million Ramping up following $27 million renovation Restaurant, retail and expansion Hotel del Coronado 211 rooms Joint Venture with 45% ownership Implied purchase price of $745 million 78-room North Beach / 144-room South Beach developments 20,000 square foot spa and fitness center 679 rooms 18

19 \ LOGOf 19

20 2006 Acquisitions Westin St. Francis San Francisco Purchase price of $440 million 39,000 square feet of Union Square retail Ability to create operating efficiencies LaSolana Purchase price of $29.5 million Adjacent to Four Seasons Punta Mita 71-room luxury development 50 for-sale residential sites 1,195 rooms 71 units 20

21 2006 Acquisitions Ritz-Carlton Laguna Niguel Pending acquisition Purchase price of $330 million 18 oceanfront acres Ramping up following $40 million renovation AAA Five-Diamond Award 19 years in a row Retail and expansion opportunities 393 rooms 21

22 Strategic Hotels & Resorts Financial Results

23 Strong 2005 Operating Results North America Same Store Portfolio Total RevPAR $ % RevPAR $ % EBITDA/room $21,298 14% Maximizing Cash Flow per Room 23

24 Improving Portfolio Metrics First Quarter North America Same Store Portfolio Q1 05 Q1 06 RevPAR $ % $ Total RevPAR $ % $ ADR $ % $ EBITDA/room $6, % $7,810 24

25 Accretive Growth First Quarter 2006 Comparison Same Store 2005 Acquisitions RevPAR Growth 9.4% 22.2% Total RevPAR Growth 8.9% 18.4% $5.9 Million Over 2005 Underwritten Budget 25

26 Strong Balance Sheet 31% debt to total enterprise value 82% fixed rate debt 4.6 years average maturity $136 million capital recycling over past 12 months 26

27 Summary Research driven, consumer oriented Experienced hotel operators High quality hotels with intrinsic value Creative leadership; financial discipline Multi-year internal investment plan 27

28 \ LOGOf 28