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Strategic Hotels & Resorts Completes Sell of the 1,184-room Hyatt Regency New Orleans
to Poydras Properties Hotel Holdings Co. for $32 million
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CHICAGO, Jan. 10, 2008  - Strategic Hotels & Resorts, Inc. , announced today that the company closed on the previously announced agreement to sell the 1,184-room hotel Hyatt Regency New Orleans to Poydras Properties Hotel Holdings Co., LLC, effective December 28, 2007. Under the terms of the agreement, Strategic Hotels & Resorts sold the property to Poydras Properties Hotel Holdings for a sales price of $32 million. The sales price was composed of $23 million in cash, a $6 million 10% interest bearing promissory note due March 31, 2008 and a $3 million non-interest bearing promissory due in 6 years.

In connection with the closing, the company resolved business interruption insurance and other issues related to Hurricane Katrina with the property's manager, Global Hyatt Corporation.
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With 600 windows blown out, the 31-story tower next to the Louisiana Superdome became a poster child for the devastation of Hurricane Katrina. Strategic Hotels acquired the Hyatt Regency New Orleans in 1997. The property was taken out of service after it sustained significant damage from Hurricane Katrina in August 2005.
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About the Company

Strategic Hotels & Resorts, Inc. is a real estate investment trust (REIT) which owns and provides value-enhancing asset management of high-end hotels and resorts in North America, Mexico and Europe. The company currently has ownership interests in 20 properties with an aggregate of 9,034 rooms. For a list of current properties and for further information, please visit the company's website at http://www.strategichotels.com.

This press release contains forward-looking statements about Strategic Hotels & Resorts (the "Company"). Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties. Actual results could differ materially from the Company's projections. Factors that may contribute to these differences include, but are not limited to the following: ability of the buyer to service its debt obligations; availability of capital; ability to obtain or refinance debt; rising interest rates; and economic conditions generally and in the real estate market specifically.

Additional risks are discussed in the Company's current filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. The forward-looking statements are made as of the date of this press release, and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Contact:

Ryan Bowie
    Vice President and Treasurer
    Strategic Hotels & Resorts
    (312) 658-5766
    rbowie@strategichotels.com

 

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Also See: Strategic Hotel Capital Estimates Hyatt Regency New Orleans Losses Due to Storm Damage and Lost Business Could Exceed $100 million; Discussing Public/private Partnership for the Renovation of the Hotel and its Immediate Neighborhood / October 2005
Strategic Hotel Capital Begins Significant Repair Work on the Hyatt Regency New Orleans / October 2005
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