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 Strategic Hotel Capital, Inc. Acquiring the Four Seasons
Washington, D.C. for  $168.9 million
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CHICAGO, Jan. 23, 2006 - Strategic Hotel Capital, Inc. (NYSE: SLH), which operates as Strategic Hotels & Resorts, today announced it has signed an agreement to acquire the Four Seasons Washington, D.C. hotel from an entity controlled by the Louis Dreyfus Property Group for a purchase price of $168.9 million.  The acquisition, which is expected to close during the first quarter 2006, remains subject to customary closing conditions.
    
The 211-room luxury hotel is located in Georgetown, just 12 blocks from the White House and received the highly-coveted 2005 Mobil Five-Star award, the only Washington, D.C. area hotel to receive such recognition.  The hotel recently reopened after a just completed $27.0 million renovation that reduced the number of rooms from 257 to a more desirable mix of 211 luxury guestrooms.

The hotel features 160 rooms, 51 luxury suites, 12,500 square feet of meeting space, 24,000 square feet of retail space, underground parking, and a 12,500 square foot Four Seasons fitness club and spa.  Four Seasons will continue to manage the property subsequent to the acquisition.
    
The company forecasts a period of ramp up after its reopening during the next 12 months and estimates the property will contribute between $9.5 million and $10.5 million of EBITDA in the last ten months of 2006 and between $10.4 million and $11.4 million in the first twelve months of ownership.
    
Laurence Geller, chief executive officer of Strategic Hotels & Resorts, commented, "The Washington, D.C. market has significant growth yet to come. As it stands, the Four Seasons leads the market and enjoys a tremendous reputation.  We believe our physical improvements to the food and beverage and lobby areas will position this hotel to reap the benefits of the market growth while the hotel continues to lead the market for the foreseeable future."

About the Company
Strategic Hotel Capital, Inc. also operates under the name Strategic Hotel & Resorts and is a real estate investment trust, which owns and asset manages high-end hotels and resorts.  The company has ownership interests in 17 properties with an aggregate of 8,269 rooms.  For further information, please visit the company's website at http://www.strategichotels.com.

This press release contains forward-looking statements about Strategic Hotel Capital (the "Company").  .
 

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Contact:

Strategic Hotel Capital, Inc.
Web Site: http://www.strategichotels.com 

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Also See: Four Seasons Hotel Washington, DC; A Quarter Century Commitment to Staff, Guests and to the Nation's Capital / March 2004
How Four Seasons Hotel Beat the Heat During the Georgetown Blackout; Manhole fires and power outages in Georgetown left residents and business owners without electricity / June 2001


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