"This new hotel is a perfect addition to Sheraton's impressive global portfolio of large convention and meetings hotels," said Joe Gelchion, senior vice president of Sheraton Hotels & Resorts Worldwide. "We are eager to offer a warm Sheraton welcome to those traveling to the great city of Phoenix and also look forward to complementing Starwood's strong presence of destination resorts in the state of Arizona."

"We are defining the future of Phoenix for decades and generations to come," said Phoenix Mayor Phil Gordon. "Breaking ground on this new Sheraton, tripling the size of our convention center, implementing a light rail system, bringing 15,000 college students into the heart of Phoenix and everything else we're doing is turning heads in both hemispheres. I always say that Phoenix is on the rise. Today, so is our downtown Sheraton."

The exterior colors of the hotel will include red and gold hues signifying the connection to the desert landscape as well as beautifully sculpted shading louvers on the south face of the building. Guest rooms will be furnished in Sheraton's own chic "Riverside" design featuring a color palette of warm, rich creamy tones and textures, subdued Damask patterns mixed with faded florals and highly polished honey-colored woods. All guest rooms will feature Sheraton's signature Sweet Sleeper(sm) Bed, an expansive 14-square-foot work area; wireless Internet and 32-inch LCD TV's. Other guest services will include the Sheraton Club Level with upgraded room amenities and an exclusive Club Lounge.

The hotel will boast a 15,000-square-foot ballroom, and a nearly 30,000-square-foot senior ballroom. Also included will be an additional 28 meeting rooms for a total of 80,000 square feet of meeting space.

Additional guest services include an outdoor pool and meeting area, a street-level restaurant featuring al-fresco dining, a 6,500-square foot fitness center and spa, as well as an outdoor patio deck running the length of the building, shaded by date palm trees.

Starwood's portfolio of hotels in the Phoenix area includes the famed Phoenician resort, the Sheraton Wild Horse Pass, The Wigwam Golf Resort and Spa, The Sheraton Crescent and The Westin Kierland Resort and Spa in addition to The Westin Kierland Villas, which opened in June 2004, a Starwood Vacation Ownership product. Plans are also underway to develop W Phoenix Hotel & Residences in Downtown which will have 175 rooms and W Scottsdale Hotel & Residences with 225 rooms. Once the Sheraton and W's are complete, Starwood will have more than 4,900 guest rooms in greater Phoenix.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 countries and 145,000 employees at its owned and managed properties. Starwood® Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points® by Sheraton, W®, Le Meridien® and the recently announced Aloft(SM). Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com.

This press release contains forward-looking statements within the meaning of federal securities regulations.