Strategic Hotels & Resorts Announces Offering of 14 Million Shares of Common Stock

Strategic Hotels & Resorts, Inc. announced that it has commenced a follow-on public offering of 14,000,000 shares of its common stock.

The Company has granted the underwriters a 30-day option to purchase up to an additional 2.2 million shares of common stock at the public offering price to cover over-allotments, if any.

The shares will be offered through an underwriting syndicate led by

Deutsche Bank Securities and Wachovia Securities with Citigroup, Raymond James and JMP Securities serving as underwriters.

The Company expects to use the net proceeds from the offering to repay amounts outstanding under its revolving credit facility, to partially fund the acquisition of the Ritz-Carlton Laguna Niguel from Strategic Hotel Capital, L.L.C. and for general corporate purposes.

The common shares will be sold pursuant to an effective registration statement that was previously filed with the Securities and Exchange Commission.