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BEE Valuation on Per Key Basis

|Includes: Strategic Hotels & Resorts, Inc. (BEE)

I've run a back-of-envelope per room key valuation.  Perhaps, the analysis is too rudimentary, but the common doesn't seem super cheap on this basis unless the company were able to sell off the portfolio at $300k per key.  What do you think?

At $2.38 a share, the implied per key valuation is $264,764.  Doesn't seem like a great bargain.

This is based on snapshot of Q2 (75.4 MM shs out, net debt + preferred of $2,033 MM, and 8,358 rooms). 

At 150k per key, implied equity value is negative $10.34 (EV of $1,254 MM divided by 8,358 rooms less debt less preferreds)

At 200k per key, implied equity value is negative $4.80 (EV of $1,672 MM divided by 8,358 rooms less debt less preferreds)

At $250k per key, implied equity value is $0.74.

At $300k per key, implied equity value is $6.29 (which is pretty compelling if they actually get that valuation).