Strategic Hotels & Resorts Signs Purchase and Sale Agreement for Disposition of the Four Seasons Mexico City

Strategic Hotels & Resorts Signs Purchase and Sale Agreement for Disposition
of the Four Seasons Mexico City

CHICAGO, Oct. 5 /PRNewswire-FirstCall/ --Strategic Hotels & Resorts, Inc.
(NYSE: BEE), today announced that the company has signed a purchase and sale
agreement for the sale of the Four Seasons Mexico City to Meridia Capital for
a gross price of $54.0 million, or $225,000 per room. The sale, subject to
certain closing contingencies, is scheduled to close in the fourth quarter and
the company expects to record a book gain of approximately $4.5 million. The
240-room property was forecasted to contribute approximately $3.9 million in
EBITDA for the full year 2009, representing a sales multiple of 13.8 times and
a capitalization rate of 6.2% on NOI.

Chief Executive Officer, Laurence Geller remarked, "We are very pleased to
announce this sale at an attractive price in an extremely difficult
environment. This transaction, in a market with a significant amount of
directly competitive new or under-construction supply, demonstrates the value
in our unique portfolio of properties in general, and especially so in Mexico
City given the impact of the events surrounding the onset of the H1N1 virus.
The sale is in line with the company's disciplined asset disposition strategy
and provides an important source of liquidity for unexpected events as we
continue to manage through the current challenging economic environment."

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, Mexico and Europe. The company currently
has ownership interests in 19 properties with an aggregate of 8,328 rooms. For
a list of current properties and for further information, please visit the
company's website at www.strategichotels.com.

About Meridia Capital

Meridia Capital is a private equity group focused on investing in premium
hotel properties internationally. The firm owns and asset manages hotels in
urban markets which are operated by the world's leading international brands.
Meridia Capital Hospitality I is Meridia Capital Partners' first fund and was
closed in early 2007 with equity of euro 150 million. Meridia Capital
currently owns properties in Paris, Santiago (Chile), Sao Paulo (Brazil),
Mexico D.F. and Thailand. For further information please visit
www.meridiacapital.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: volatility in equity or debt
markets; failure of closing contingencies or conditions to be satisfied;
availability of capital; ability to obtain or refinance debt; rising interest
rates; rising insurance premiums; cash available for capital expenditures;
competition; demand for hotel rooms in our current and proposed market areas;
economic conditions generally and in the real estate market specifically;
delays in construction and development; demand for hotel condominiums; risks
related to natural disasters; the effect of threats of terrorism and increased
security precautions on travel patterns and hotel bookings; the outbreak of
hostilities and international political instability; legislative or regulatory
changes, including changes to laws governing the taxation of REITs; and
changes in generally accepted accounting principles, policies and guidelines
applicable to REITs.

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.

SOURCE Strategic Hotels & Resorts, Inc.

James Mead, Chief Financial Officer of Strategic Hotels & Resorts,
+1-312-658-5740