The Board of Directors of Strategic Hotels & Resorts, Inc. (NYSE: BEE) announced today thatLaurence S. Gelleris stepping down as President and Chief Executive Officer and member of the Company's Board of Directors, effective immediately. Raymond L. "Rip" Gellein, Jr., Chairman of the Company's Board of Directors, will assume the additional role of Chief Executive Officer. Mr. Geller will serve in an advisory role to Mr. Gellein until the end of the year. In addition, the Company today reaffirmed its full-year guidance.

"Laurence has led the creation of an outstanding hotel company, replete with some of the world's most enviable hotels and a deep management team of accomplished professionals," said Mr. Gellein. "He instilled a legacy of ingenuity and disciplined execution that drives both company and hotel performance which will serve Strategic Hotels well into the future. On behalf of the entire Board of Directors, I thank him for his numerous contributions and wish him all the best in his future endeavors."

Mr. Geller said: "It has been an immense source of pride over the past 15 years to have founded Strategic Hotels and to have worked with a terrific team to build not only the acknowledged best high-end lodging portfolio, but also the most admired asset management organization in the industry. We have emerged from the recession a strong company with great assets well positioned for sustained growth in a virtually no-supply environment. And with the recent addition of the iconic JW Marriott Essex House New York, the Company has re-established its East Coast presence. With all of this in place, and my second novel, 'The Last Resort,' being published this month, now is an excellent time to transition leadership of the Company into Rip's more-than-capable hands and focus on my myriad other activities and the next chapter in my life. I remain a significant shareholder of the Company and hold it in the highest regard," Geller concluded.

Mr. Gellein has been a member of the Company's Board of Directors sinceAugust 2009and has served as its Chairman since August 2010. A proven leader with deep operational and financial expertise in the public lodging industry, Mr. Gellein is intimately ingrained in both the development and execution of the Company's strategic plan. Previously, he was President of the Global Development Group for Starwood Hotels and Resorts Worldwide and, before that, was the Director, Chairman and Chief Executive Officer of Starwood Vacation Ownership, Inc. Gellein also served as Chairman and Co-Chief Executive Officer of Vistana, Inc. Mr. Gellein's assumption of the CEO role is consistent with the Company's succession plan.

"I am fully confident in both the strategic direction of the Company as well as the strength and professionalism of its leadership team," said Gellein. "This group has decades of industry experience and will ensure the Company seamlessly continues the execution of its strategic plan. Given our unique physical assets, profitable hotel operations and strong balance sheet, I am looking forward to leading Strategic Hotels as it realizes its future earnings and operating growth potential."

Following the recession, the Company has been intently focused on completing its turnaround strategy, otherwise known as "Strategic 2.0." Having achieved its core objectives, today the Company is recognized as being among the highest performers in the industry, with an enviable portfolio that trades well below replacement cost, a balance sheet structured to support future growth, ample organic ROI opportunities embedded in each property, and a team with the highest asset management, investment and operations expertise in the industry.

Geller, 64, has been the CEO of Strategic Hotels since it was founded in 1997 and has a long career in the lodging industry spanning more than 45 years. He has made many contributions to the industry, having authored more than 50 published professional articles, is a frequent lecturer at various universities and industry events, and has held leadership positions in some of the industry's most influential associations. He is a dedicated humanitarian, and was recently named a Commander of the Order of the British Empire (CBE) by her Majesty Queen Elizabeth II.

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 7,865 rooms and 835,000 square feet of meeting space. For a list of current properties and for further information, please visit the Company's website at http://www.strategichotels.com.

Forward Looking Statements

This press release contains forward-looking statements about Strategic Hotels & Resorts, Inc. (the "Company"). Except for historical information, the matters discussed in this press release are forward-looking statements subject to certain risks and uncertainties. These forward-looking statements include statements regarding the Company's future financial results, positive trends in the lodging industry and the Company's continued focus on improving profitability. 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: 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; contagious disease outbreaks; 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.