Orange Capital Reports Results of Potential Buyer Contacts for Strategic Hotels & Resorts *Houlihan Lokey Has Contacted Many of the Most Logical Potential Buyers of the Company and Found Significant Interest *Orange Capital Is Concerned Many of the Most Logical Buyers Have Not Been Contacted By Any Advisor to the Company Regarding a Sale of the Entire Company *Orange Capital Remains Troubled that Strategic Hotels Has Failed to Confirm Public Reports From Mid-June Stating the Company has Retained a Financial Advisor to Pursue a Potential Sale Business Wire NEW YORK -- July 16, 2013 Orange Capital LLC, holder of approximately 3.7% of Strategic Hotels & Resorts, Inc. (“Strategic Hotels”) (NYSE: BEE), has sent the following letter to the independent members of the Board of Directors of Strategic Hotels: July 16, 2013 Independent Members of the Board of Directors Strategic Hotels & Resorts, Inc. 200 West Madison Street, Suite 1700 Chicago, Illinois 60606-3415 Dear Members of the Board: As you know, Orange Capital LLC (“Orange Capital”) continues to strongly believe that a broad and thorough process to explore a potential sale of Strategic Hotels & Resorts, Inc. (“Strategic Hotels” or the “Company”) is imperative. Our reasons have been outlined in our prior letters to you. We were initially encouraged when both the Wall Street Journal and Reuters reported in mid-June that the Company hired Eastdil Secured to pursue a potential sale of the whole Company. Since these media reports surfaced, Strategic Hotels has failed to confirm or deny the media reports of a sale process and clarify what process, if any, is being conducted. By not doing so, the Company has created significant uncertainty as market participants continue to buy and sell Strategic Hotel’s shares with what we believe is neither reasonable transparency nor appropriate disclosure. We believe that it is the responsibility of the independent directors to ensure that shareholders are promptly informed of the scope of any process being pursued so that they are able to make responsible investment decisions. Given Strategic’s failure to respond to these media reports and the Company’s history of poor corporate governance, we felt compelled to retain our own financial advisor, Houlihan Lokey, to represent us. Houlihan Lokey’s mandate, among other services, is to assist us in evaluating potential interest in the Company. Houlihan Lokey has been in contact with more than ten of what it believes are logical “Tier A” buyers for the Company. In summary, Houlihan Lokey reported to us that there is a broad spectrum of interest in the Company. However, Houlihan Lokey also informed us that there is significant confusion by certain potential buyers as to: (i) whether any process is underway, (ii) whether or not the Company is seriously interested in a transaction for the Company as a whole, (ii) which advisor(s) has been retained by the Company and (iii) any specific process or schedule around a potential sale. In addition, based on Houlihan Lokey’s outreach to the most likely buyers, we believe that many of these potential buyers have not, even to their own surprise, been contacted by the Company or its advisor(s). As a result, assuming that the media reports of a “sale process” are true, we are highly concerned that Strategic Hotels may be embarking on a limited process, potentially for only select assets or only with certain types of buyers. We believe it is the responsibility of the independent directors to ensure that any sale process is reasonably designed to maximize value for all shareholders. We again urge the Company to promptly (i) confirm or deny the reports from Reuters and The Wall Street Journal that it retained an advisor to pursue a sale, (ii) announce which firm or firms the Company has retained and the scope of their mandate and (iii) have the Company’s advisor(s) contact all logical buyers to inform them that a sale process for the whole Company will be conducted and when the dates that materials would be made available for review. We look forward to seeing evidence of such transparency in the days ahead. Sincerely Daniel Lewis, Managing Partner About Orange Capital LLC Orange Capital, LLC is a New York based investment firm.The firm is a value oriented investor in event-driven securities. The firm allocates across the capital structure on an opportunistic basis. Orange Capital was co-founded in 2005 by Daniel Lewis and Russell Hoffman. Prior to founding the firm, Orange Capital's portfolio manager, Daniel Lewis, was a director with Citigroup's Global Special Situations Group. About Houlihan Lokey Houlihan Lokey is an international investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring and valuation. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and Asia. Independent advice and intellectual rigor are hallmarks of our commitment to client success across our advisory services. Houlihan Lokey is globally ranked as the No. 1 restructuring advisor, the No. 1 M&A fairness opinion advisor over the past 10 years, and the No. 1 M&A advisor for U.S. transactions under $3 billion, according to Thomson Reuters. For more information, please visit www.HL.com. Contact: For Media & Investor Inquiries: ICR Inc. Theodore Lowen, 646-277-1238 Jason Chudoba, 203-682-1249
Orange Capital Reports Results of Potential Buyer Contacts for Strategic Hotels & Resorts
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