Strategic Hotel Capital, Inc. Announces Public Offering of 10,600,000 Shares of Common Stock

. October 14, 2008

CHICAGO, IL, August 3, 2005. Strategic Hotel Capital, Inc. today announced that it plans to publicly offer 10,600,000 shares of its common stock pursuant to its effective shelf registration statement previously filed with the Securities and Exchange Commission. The underwriters will be granted a 30-day option to purchase up to an additional 1,590,000 shares to cover overallotments, if any.

Strategic Hotel is proposing to sell the shares through an underwriting syndicate led by Deutsche Bank Securities Inc. with Goldman Sachs & Co., Banc of America Securities LLC, Credit Suisse First Boston, Wachovia Securities, and Raymond James as underwriters.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state. Copies of the preliminary prospectus may be obtained from the offices of Deutsche Bank Securities Inc., New York, NY, Attention: Syndicate Department or from the offices of any of the other managing underwriters identified above.

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