In addition to a $350-million per-loss limit in its insurance coverage, Strategic Hotel Capital's deductible for the Hyatt Regency in New Orleans is $11 million, according to chief financial officer Jim Mead. He added the company has received a $10-million advance from its insurance carrier and expects additional money before the end of the year.

"Insurance will be largely sufficient to bring the property back in service, in substantially new condition," Mead reported. "We are comfortable we will not exceed our insurance limit." However, president and chief executive officer Laurence S. Geller said, "It would be a stretch for us to have it in full service by Jan. 1, 2007."

Company officials say they have business interruption insurance to cover losses during the months it will be out of service. The New Orleans asset's earnings before interest, taxes, depreciation and amortization fell to $126,000 in the third quarter, according to the company's report, down from $2.2 million during the same three months in 2004. For the first nine months of the year, EBIDTA is off more than 20%, to just under $10 million.