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Strategic Hotels & Resorts, Inc. Announces Updated Guidance Ranges To Reflect Recent Transaction Activity

Strategic Hotels & Resorts, Inc. Announces Updated Guidance Ranges To Reflect
                         Recent Transaction Activity

Raises Guidance Ranges for Comparable EBITDA and Comparable FFO per fully
diluted share

PR Newswire

CHICAGO, June 2, 2014

CHICAGO, June 2, 2014 /PRNewswire/ --Strategic Hotels & Resorts, Inc. (the
"Company") (NYSE: BEE) today announced that management is raising its guidance
ranges for full year 2014 Comparable EBITDA and Comparable FFO per fully
diluted share to reflect the closing of the common equity offering, the
acquisition of the remaining 63.6 percent interest in the Hotel del Coronado,
which is expected to close in early June, and the redemption of the 8.25%
Series C Cumulative Redeemable Preferred Stock, which is expected to be
completed in early July.

For the year ending December 31, 2014, the Company anticipates that Comparable
EBITDA will be in the range of $230.0 million to $250.0 million and Comparable
FFO in the range of $0.59 and $0.68 per fully diluted share. Management is
also reaffirming its guidance for Total United States RevPAR and Total RevPAR
growth in the range between 5.0 percent to 7.0 percent, and EBITDA margin
expansion of 120-200 basis points.

Guidance Metrics                Previous Range          Revised Range
RevPAR                          5.0% - 7.0%             5.0% - 7.0%
Total RevPAR                    5.0% - 7.0%             5.0% - 7.0%
EBITDA Margin expansion         120 – 200 basis points  120 – 200 basis points
Comparable EBITDA               $210M - $230M           $230M - $250M
Comparable FFO per diluted      $0.57 - $0.67           $0.59 - $0.68
share

Note: The Comparable FFO per fully diluted share range reflects the recently
announced sale of 41.4 million shares of common stock at $10.50 per share,
including 5.4 million shares of common stock issued pursuant to the exercise
in full of the underwriters' over-allotment option

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 the United States and Europe. The company currently has
ownership interests in 16 properties with an aggregate of 7,862 rooms and
835,000 square feet of multi-purpose meeting and banqueting space.

This press release contains forward-looking statements about the Company.
Except for historical information, the matters discussed in this press
release, including the Company's intended use of proceeds, 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: conditions
to closing the acquisition of the Hotel del Coronado may not be satisfied,
closing on the acquisition of the Hotel del Coronado may be delayed, the
effects of economic conditions and disruption in financial markets upon
business and leisure travel and the hotel markets in which the Company
invests; the Company's liquidity and refinancing demands; the Company's
ability to obtain, refinance or extend maturing debt; the Company's ability to
maintain compliance with covenants contained in its debt facilities;
stagnation or deterioration in economic and market conditions, particularly
impacting business and leisure travel spending in the markets where the
Company's hotels operate and in which the Company invests, including luxury
and upper upscale product; general volatility of the capital markets and the
market price of the Company's shares of common stock; availability of capital;
the Company's ability to dispose of properties in a manner consistent with its
investment strategy and liquidity needs; hostilities and security concerns,
including future terrorist attacks, or the apprehension of hostilities, in
each case that affect travel within or to the United States, Germany or other
countries where the Company invests; difficulties in identifying properties to
acquire and completing acquisitions; the Company's failure to maintain
effective internal control over financial reporting and disclosure controls
and procedures; risks related to natural disasters; increases in interest
rates and operating costs, including insurance premiums and real property
taxes; delays and cost-overruns in construction and development; marketing
challenges associated with entering new lines of business or pursuing new
business strategies; the Company's failure to maintain its status as a REIT;
changes in the competitive environment in the Company's industry and the
markets where the Company invests; changes in real estate and zoning laws or
regulations; legislative or regulatory changes, including changes to laws
governing the taxation of REITs; changes in generally accepted accounting
principles, policies and guidelines; and litigation, judgments or settlements.

Additional risks are discussed in the Company's filings with the SEC,
including those appearing under the heading "Item 1A. Risk Factors" in the
Company's most recent Form 10-K and subsequent Form 10-Qs. 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 the Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise, except as required by law.

The following tables reconcile projected 2014 net income attributable to
common shareholders to projected Comparable EBITDA, Comparable FFO and
Comparable FFO per diluted share (in millions, except per share data):

                                                     Low Range  High Range
Net Income Attributable to Common Shareholders       $289.5     $309.5
Depreciation and Amortization                        134.9      134.9
Interest Expense                                     86.7       86.7
Income Taxes                                         3.1        3.1
Non-controlling Interests                            1.3        1.3
Adjustments from Consolidated Affiliates             (16.1)     (16.1)
Adjustments from Unconsolidated Affiliates           7.9        7.9
Preferred Shareholder Dividends                      13.7       13.7
Preferred Stock Redemption Liability                 3.7        3.7
Realized Portion of Deferred Gain on Sale Leasebacks (0.2)      (0.2)
Gain on Sale of Asset                                (155.8)    (155.8)
Gain on Consolidation of Affiliate                   (141.1)    (141.1)
Other Adjustments                                    2.4        2.4
Comparable EBITDA                                    $230.0     $250.0



                                                     Low Range  High Range
Net Income Attributable to Common Shareholders       $289.5     $309.5
Depreciation and Amortization                        134.1      134.1
Realized Portion of Deferred Gain on Sale Leasebacks (0.2)      (0.2)
Gain on Sale of Asset                                (155.8)    (155.8)
Gain on Consolidation of Affiliate                   (141.1)    (141.1)
Non-controlling Interests                            1.2        1.2
Adjustments from Consolidated Affiliates             (8.6)      (8.6)
Adjustments from Unconsolidated Affiliates           4.8        4.8
Interest Rate Swap OCI Amortization                  8.9        8.9
Preferred Stock Redemption Liability                 3.7        3.7
Other Adjustments                                    2.1        2.1
Comparable FFO                                       $138.6     $158.6
Comparable FFO per Diluted Share                     $0.59      $0.68



SOURCE Strategic Hotels & Resorts, Inc.

Website: http://www.strategichotels.com
Contact: Diane Morefield, EVP, Chief Financial Officer, Strategic Hotels &
Resorts, Inc., (312) 658-5740, or Jonathan Stanner, VP, Capital Markets &
Treasurer, Strategic Hotels & Resorts, Inc., (312) 658-5746
 
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