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 Starwood Reports Second Quarter 2008 Net Income Fell 27.6% to $105 million
from $145 million; International Results Were Solid, Significant Drop in
United States Performance
Hotel Operating Statistics
.


WHITE PLAINS, N.Y. - July 24, 2008 - Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported second quarter 2008 financial results. 

Second Quarter 2008 Highlights 

  • EPS from continuing operations was $0.56. 
  • Income from continuing operations was $107 million. 
  • Total Company Adjusted EBITDA was $299 million. 
  • Worldwide System-wide REVPAR for Same-Store Hotels increased 9.6% compared to the second quarter of 2007. System-wide REVPAR for Same-Store Hotels in North America increased 3.0%. 
  • Management and franchise revenues increased 11.6% compared to 2007. 
  • Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 6.8% compared to the second quarter of 2007. REVPAR for Starwood branded Same-Store Owned Hotels in North America increased 5.2%. 
  • Margins at Starwood branded Same-Store Owned Hotels Worldwide and in North America decreased 84 and 58 basis points, respectively, compared to the second quarter of 2007. 
  • Reported revenues from vacation ownership and residential sales decreased 29.2% compared to 2007. 
  • The Company signed 37 hotel management and franchise contracts in the quarter representing approximately 9,000 rooms. 
  • During the second quarter, the Company repurchased approximately 3.8 million shares at a cost of $182 million. 
Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the second quarter of 2008 of $0.56 compared to $0.67 in the second quarter of 2007. Excluding special items, which net to zero in 2008, EPS from continuing operations was $0.56 for the second quarter of 2008 compared to $0.82 in the second quarter of 2007. Excluding special items, the effective income tax rate in the second quarter of 2008 was 28.3% compared to 24.1% in the same period of 2007 primarily due to the recognition of foreign tax credits in the second quarter of 2007, which were generated in prior years. 

Income from continuing operations was $107 million in the second quarter of 2008 compared to $145 million in 2007. Excluding special items, which net to zero in 2008 and a $33 million charge in 2007, income from continuing operations was $107 million for the second quarter of 2008 compared to $178 million in 2007. The decline in 2008 results was primarily due to lower vacation ownership results and the inclusion, in 2007, of a $27 million gain from the sale of several hotels by a joint venture in which we held a minority interest. 
Net income was $105 million and EPS was $0.56 in the second quarter of 2008 compared to $145 million and EPS of $0.67 in the second quarter of 2007. 

Frits van Paasschen, CEO said, “Starwood’s global footprint and strong brands drove the Company’s second quarter results above expectations and ahead of our competition. While international lodging demand remains solid, the economic picture in the US has continued to deteriorate, with lodging demand dropping significantly in May. We are pleased with our second quarter performance, but are focused on managing costs to minimize the impact of this slowdown. Despite the US economic picture, we remain bullish on our long-term growth prospects. Today, our pipeline consists of more than 120,000 high quality rooms with almost 60% outside the US.” 

Operating Results 

Second Quarter Ended June 30, 2008 

Management and Franchise Revenues 
Worldwide System-wide REVPAR for Same-Store Hotels increased 9.6% (4.8% using constant dollars) compared to the second quarter of 2007. International System-wide REVPAR for Same-Store Hotels increased 18.6% (8.7% using constant dollars). Worldwide System-wide REVPAR increases by region were: 26.1% in Africa and the Middle East, 18.9% in Europe, 16.1% in Latin America, 14.0% in Asia Pacific, and 3.0% in North America. Worldwide System-wide REVPAR increases by brand were: Le Méridien 18.7%, Sheraton 10.5%, Four Points by Sheraton 9.5%, St. Regis/Luxury Collection 9.0%, Westin 5.6%, and W Hotels 1.5%. 

Management fees, franchise fees and other income were $218 million, up $23 million, or 11.8%, from the second quarter of 2007. Management fees grew 8.5% to $115 million and franchise fees grew 18.9% to $44 million. 

Approximately 55% of the Company’s management and franchise fees are generated in markets outside the United States. 

During the second quarter of 2008, the Company signed 37 hotel management and franchise contracts representing approximately 9,000 rooms of which 36 were new builds and 1 was a conversion from another brand. At June 30, 2008, the Company had approximately 500 hotels in the active pipeline representing over 120,000 rooms, driven by strong interest in all Starwood brands. Of these rooms, almost 70% are in the upper upscale and luxury segments and almost 60% are in international locations. 

During the second quarter of 2008, 21 new hotels and resorts (representing approximately 5,000 rooms) entered the system, including the W Istanbul (Istanbul, Turkey, 134 rooms), the Sheraton Huizhou Beach Resort (Guangdong, China, 293 rooms) and three aloft hotels, officially launching our new brand. Thirteen properties (representing approximately 4,000 rooms) were removed from the system during the quarter. 

Owned, Leased and Consolidated Joint Venture Hotels 

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 6.8%. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 5.2%. Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 9.3% (down 2.0% using constant dollars). 

Revenues at Starwood branded Same-Store Owned Hotels in North America increased 4.4% while costs and expenses increased 5.2% when compared to 2007. Margins at these hotels decreased 58 basis points. 

Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 5.9% while costs and expenses increased 7.1% when compared to 2007. Margins at these hotels decreased 84 basis points. 

Approximately 45% of Starwood’s Owned Hotel earnings (before depreciation) are generated from outside the United States. 

Revenues at owned, leased and consolidated joint venture hotels were $620 million when compared to $634 million in 2007. Reported revenues and operating income were impacted by the sale or closure of 11 hotels since the beginning of the second quarter of 2007. These hotels had $0 million of revenues and $1 million of expenses (before depreciation) in 2008 as compared to $40 million of revenues and $35 million of expenses (before depreciation) in the same quarter of 2007. 

Vacation Ownership 

Total vacation ownership reported revenues decreased 28.4% to $192 million when compared to 2007. Reported revenues are impacted by the timing of the recognition of deferred revenues under percentage of completion accounting for projects under construction. During the second quarter of 2008, the Company was actively selling vacation ownership interests at 18 resorts and is also in the predevelopment phase of new fractional or vacation ownership resorts in California, Colorado, Hawaii, and Mexico. 

Originated contract sales of vacation ownership intervals decreased 25.7% primarily due to the sellout of the Company’s Westin Ka’anapali Ocean Resort North in Maui and a decline in demand. The impact in Hawaii was partly offset by strong results in Orlando. The average price per vacation ownership unit sold decreased 19.1% to approximately $21,000, driven by a higher sales mix of lower priced biennial inventory in Hawaii. The number of contracts signed decreased 7.7% when compared to 2007. 

Vacation ownership results were ahead of the Company’s expectations for the second quarter, primarily due to the favorable product mix of units sold, timing of expenses and other items that were realized earlier than expected. However, the Company now expects that full year 2008 results will be lower than prior guidance due to lower sales in Hawaii and of our fractional product, as well as lower financing income. 

Conditions remain uncertain in the asset backed securities market. The Company continues to expect that it will complete a sale of vacation ownership notes receivable before the end of 2008. However, given market conditions, the Company is now assuming that it will sell a smaller amount of receivables, and based on current advance rates and spreads, it now expects the gain from this sale to be $10 million to $15 million, down $20 million from prior expectations. 

Residential 

During the second quarter of 2008, the Company’s residential revenues were $2 million compared to $6 million in the prior year as our completed residential inventory is substantially sold out. 

Selling, General, Administrative and Other 

Selling, general, administrative and other expenses increased 7.0% to $138 million compared to the second quarter of 2007. The increase was primarily due to the impact of foreign currency exchange rates and the reversal, in 2007, of a litigation reserve as a result of a favorable outcome to the Company. 

Asset Sales 

During the second quarter of 2008, the Company entered into purchase and sale agreements for the sale of two wholly-owned hotels. The expected proceeds from the sales, which are expected to close later in 2008, are $123 million. 

Capital 

Gross capital spending during the quarter included approximately $61 million in renovations of hotel assets including construction capital at the Sheraton Steamboat Resort, Sheraton Fiji Resort, W Times Square, aloft Philadelphia, aloft Lexington and element Lexington. Investment spending on gross vacation ownership interest (“VOI”) inventory was $120 million, which was offset by cost of sales of $36 million associated with VOI sales during the quarter. The inventory spend included VOI construction at the Sheraton Vistana Villages in Orlando, the Westin St. John Resort and Villas in the Virgin Islands, the Westin Riverfront Resort in Avon, and the Westin Lagunamar Ocean Resort in Cancun, as well as construction costs at the St. Regis Bal Harbour Resort in Miami Beach. 

Share Repurchase 

During the second quarter of 2008, the Company repurchased approximately 3.8 million shares at a total cost of approximately $182 million. In the six months ended June 30, 2008, the Company repurchased approximately 9.9 million shares at a total cost of approximately $459 million. At June 30, 2008, approximately $134 million remained available under the Company’s previously approved share repurchase authorization. Starwood had approximately 187 million shares outstanding (including partnership units) at June 30, 2008. 

Balance Sheet 

At June 30, 2008, the Company had total debt of $4.054 billion and cash and cash equivalents (including $180 million of restricted cash) of $308 million, or net debt of $3.746 billion, compared to net debt of $3.229 billion at the end of 2007. 

In May 2008, the Company completed a public offering of $200 million of the Company’s 6.25% Senior Notes due 2013 and $400 million of the Company’s 6.75% Senior Notes due 2018. The net proceeds were used to pay down the Company’s revolving credit facility. 
At June 30, 2008, debt was approximately 59% fixed rate and 41% floating rate and its weighted average maturity was 4.3 years with a weighted average interest rate of 5.5%. The Company had cash (including total restricted cash) and availability under the domestic and international revolving credit facility of approximately $1.914 billion. 

Results for the Six Months Ended June 30, 2008 

EPS from continuing operations decreased to $0.99 compared to $1.23 in 2007. Excluding special items, EPS from continuing operations was $1.01 compared to $1.30 in 2007. Excluding special items, income from continuing operations was $190 million compared to $282 million in 2007. Net income was $137 million and EPS was $0.73 compared to $267 million and $1.23, respectively, in 2007. Total Company Adjusted EBITDA, which was impacted by the sale or closure of 12 hotels since the beginning of 2007, was $554 million compared to $647 million in 2007. 

Outlook 

The uncertainty surrounding the U.S. economic environment and its impact on travel patterns continues to make it difficult to predict future results. 

For the full year 2008: 

• Assuming a REVPAR growth range at Same-Store Company Operated Hotels Worldwide of 6% to 8% and a REVPAR growth range at Branded Same-Store Company Owned Hotels in North America of 2% to 3%: 

-- Adjusted EBITDA would be between $1.180 billion and $1.220 billion. 
-- EPS before special items would be between $2.17 and $2.32. 
-- North America Same-Store Branded Owned Hotel EBITDA change of flat to down 3% versus 2007 with margin declines of 50 to 100 basis points. 
-- Management and franchise revenue growth between 10% and 12%. 
-- Operating income from our vacation ownership and residential business will decline $80 million to $100 million versus 2007 (including potential gains on sale of vacation ownership notes receivable of $10 million to $15 million in the third quarter 2008). 
-- Income from continuing operations before special items would be between $407 million and $434 million reflecting an effective tax rate of 31%. 
• Full year capital expenditures (excluding vacation ownership and residential inventory) would be approximately $500 million, including $300 million for maintenance, renovation and technology and $200 million for other growth initiatives. Additionally, net capital expenditures for vacation ownership and residential inventory, including Bal Harbour, would be approximately $275 million. 
• Full year depreciation and amortization expense would be approximately $360 million. 
• Full year interest expense would be approximately $230 million and cash taxes of approximately $150 million. 
• Full year weighted average diluted shares outstanding of 187 million. 
• The Company expects to open approximately 80 to 100 hotels (representing approximately 20,000 rooms) in 2008 and is targeting signing 200 hotel management and franchise contracts in 2008. 

For the three months ended September 30, 2008: 

• Adjusted EBITDA is expected to be $290 million to $305 million assuming: 

-- REVPAR growth at Same-Store Company Operated Hotels worldwide of 6% to 8%. 
-- REVPAR change at Branded Same-Store Owned Hotels in North America of -1% to 1%. 
-- North America Branded Same-Store Owned Hotel EBITDA change of -5% to -8% with margin declines of 100 to 150 basis points. 
-- Growth from management and franchise revenues of 7% to 9%. 
-- Operating income from our vacation ownership and residential business will be down $20 million to $25 million (including potential gains on sale of vacation ownership notes of $10 million to $15 million). 
• Income from continuing operations, before special items, is expected to be approximately $96 million to $106 million, reflecting an effective tax rate of approximately 31%. 
• EPS before special items is expected to be approximately $0.52 to $0.57. 

Special Items 

The Company’s special items netted to zero in the second quarter of 2008 compared to $33 million of net charges (after-tax) in the same period of 2007. 
             

The following represents a reconciliation of income from continuing operations before special items to income from continuing operations after special items (in millions, except per share data): 

Three Months Ended 
June 30,      Six Months Ended 
June 30, 
   2008           2007          2008           2007    
         
$  107      $  178      Income from continuing operations before special items  $  190      $  282    
$  0.56      $  0.82      EPS before special items  $  1.01      $  1.30    
         
    Special Items    
 (1  )    (49  )   Restructuring and other special charges, net (a)   (10  )    (47  ) 
   1         (8  )   Gain/(loss) on asset dispositions and impairments, net (b)  ?         3    
?     (57  )   Total special items – pre-tax   (10  )    (44  ) 
?     25    Income tax benefit for special items (c)   6     27  
?         (1  )   Income tax (expense) benefits related to the transaction with Host (d)  ?         3    
?         (33  )   Total special items – after-tax     (4  )      (14  ) 
         
$  107      $  145      Income from continuing operations  $  186      $  268    
$  0.56      $  0.67      EPS including special items  $  0.99      $  1.23    
         
(a) During the three months ended June 30, 2008, the Company recorded additional costs related to the demolition of the Sheraton Bal Harbour. During the six months ended June 30, 2008, the Company recorded a restructuring charge associated with the reorganization of certain divisions and the consolidation of certain sites. During the three and six months ended June 30, 2007, the charge primarily relates to accelerated depreciation of fixed assets in connection with the conversion of the Sheraton Bal Harbour into a St. Regis Hotel with residences and fractional units, partially offset by the refund of insurance premiums related to a retired executive. 
  
(b) During the three and six months ended June 30, 2008, the Company recorded insurance proceeds related to fire damage at a hotel, offset in the case of the six month period, by the impairment charge in the first quarter of 2008 related to a hotel held for sale. For the three months ended June 30, 2007, primarily reflects a $29 million loss on the sale of three hotels offset by a $15 million gain on the sale of assets in which the Company held a minority interest and insurance proceeds of $6 million. The gain for the six months ended June 30, 2007 also includes an $11 million gain on the sale of one hotel. 
  
(c) For the six months ended June 30, 2008, the benefit relates to the reduction of valuation allowance for capital losses that are expected to be utilized prior to their expiration and the tax benefits at the statutory rate for the reorganization described in (a). In 2007, the amount represents taxes on special items at the Company’s incremental tax rate and the favorable impact of capital loss utilization. 
  
(d) Primarily relates to a deferred tax asset recognized on the deferred gain and other tax (expense) benefits realized in connection with the Host transaction. 


STARWOOD HOTELS&RESORTS WORLDWIDE, INC. 
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
 (In millions, except per share data)

    Three Months Ended                            Six Months Ended
         June 30,                                     June 30,
---------------------------                   ------------------------
                      %                                          %
 2008      2007    Variance                    2008    2007   Variance
------- ---------- --------                   ------- ------- --------
                              Revenues
                              Owned, leased
                               and
                               consolidated
                               joint venture
$  620  $     634     (2.2)    hotels         $1,180  $1,193     (1.1)
                              Vacation
                               ownership and
                               residential
                               sales and
   194        274    (29.2)    services          387     506    (23.5)
                              Management
                               fees,
                               franchise fees
                               and other
   218        195     11.8     income            424     386      9.8
                              Other revenues
                               from managed
                               and franchised
   541        469     15.4     properties (a)  1,048     918     14.2
------- ---------- --------                   ------- ------- --------
 1,573      1,572      0.1                     3,039   3,003      1.2
                              Costs and
                               Expenses
                              Owned, leased
                               and
                               consolidated
                               joint venture
   454        461      1.5     hotels            892     897      0.6
                              Vacation
                               ownership and
   159        201     20.9     residential       317     380     16.6
                              Selling,
                               general,
                               administrative
   138        129     (7.0)    and other         268     244     (9.8)
                              Restructuring
                               and other
                               special
     1         49     98.0     charges, net       10      47     78.7
    72         67     (7.5)   Depreciation       143     134     (6.7)
     9          7    (28.6)   Amortization        16      13    (23.1)
                              Other expenses
                               from managed
                               and franchised
   541        469    (15.4)    properties (a)  1,048     918    (14.2)
------- ---------- --------                   ------- ------- --------
 1,374      1,383      0.7                     2,694   2,633     (2.3)
                              Operating
   199        189      5.3     income            345     370     (6.8)
                              Equity earnings
                               and gains and
                               losses from
                               unconsolidated
     5         34    (85.3)    ventures, net      11      46    (76.1)
                              Interest
                               expense, net
                               of interest
                               income of $1,
   (55)       (36)   (52.8)    $3, $3 and $10   (102)    (68)   (50.0)
                              Gain/(loss) on
                               asset
                               dispositions
                               and
                               impairments,
     1         (8)     n/m     net                --       3      n/m
------- ---------- --------                   ------- ------- --------
                              Income from
                               continuing
                               operations
                               before taxes
                               and minority
   150        179    (16.2)    equity            254     351    (27.6)
                              Income tax
   (42)       (33)   (27.3)    expense           (68)    (84)    19.0
                              Minority equity
                               in net
    (1)        (1)      --     (income)/loss      --       1      n/m
------- ---------- --------                   ------- ------- --------
                              Income from
                               continuing
   107        145    (26.2)    operations        186     268    (30.6)
                              Discontinued
                               Operations:
                                Net loss on
    (2)        --      n/m       dispositions  ( (49)     (1)     n/m
------- ---------- --------                   ------- ------- --------
$  105  $     145    (27.6)   Net income      $  137  $  267    (48.7)
======= ========== ========                   ======= ======= ========
                              Earnings (Loss)
                               Per Share -
                               Basic
                              Continuing
$ 0.58  $    0.69    (15.9)    operations     $ 1.01  $ 1.28    (21.1)
                              Discontinued
 (0.01)        --      n/m     operations      (0.26)     --      n/m
------- ---------- --------                   ------- ------- --------
$ 0.57  $    0.69    (17.4)   Net income      $ 0.75  $ 1.28    (41.4)
======= ========== ========                   ======= ======= ========
                              Earnings (Loss)
                               Per Share -
                               Diluted
                              Continuing
$ 0.56  $    0.67    (16.4)    operations     $ 0.99  $ 1.23    (19.5)
                              Discontinued
    --         --       --     operations      (0.26)     --      n/m
------- ---------- --------                   ------- ------- --------
$ 0.56  $    0.67    (16.4)   Net income      $ 0.73  $ 1.23    (40.7)
======= ========== ========                   ======= ======= ========

                              Weighted
                               average number
   184        208              of Shares         184     209
======= ==========                            ======= =======
                              Weighted
                               average number
                               of Shares
                               assuming
   188        216              dilution          188     217
======= ==========                            ======= =======

(a) The Company includes in revenues the reimbursement of costs
 incurred on behalf of managed hotel property owners and franchisees
 with no added margin and includes in costs and expenses these
 reimbursed costs. These costs relate primarily to payroll costs at
 managed properties where the Company is the employer.

n/m = not meaningful

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
                     CONSOLIDATED BALANCE SHEETS
                   (in millions, except share data)

                                              June 30,    December 31,
                                                2008          2007
                                             -----------  ------------
                                             (unaudited)
Assets
Current assets:
  Cash and cash equivalents                  $      128   $       162
  Restricted cash                                   172           196
  Accounts receivable, net of allowance for
   doubtful accounts of $52 and $50                 626           616
  Inventories                                       896           714
  Prepaid expenses and other                        172           136
                                             -----------  ------------
  Total current assets                            1,994         1,824
Investments                                         429           423
Plant, property and equipment, net                3,810         3,850
Assets held for sale (a)                            183            --
Goodwill and intangible assets, net               2,279         2,302
Deferred tax assets                                 699           729
Other assets (b)                                    541           494
                                             -----------  ------------
                                             $    9,935   $     9,622
                                             ===========  ============
Liabilities and Stockholders' Equity
Current liabilities:
  Short-term borrowings and current
   maturities of long-term debt (c)          $      571   $         5
  Accounts payable                                  185           201
  Accrued expenses                                1,164         1,175
  Accrued salaries, wages and benefits              342           405
  Accrued taxes and other                           301           315
                                             -----------  ------------
    Total current liabilities                     2,563         2,101
Long-term debt (c)                                3,483         3,590
Deferred tax liabilities                             32            28
Other liabilities                                 1,839         1,801
                                             -----------  ------------
                                                  7,917         7,520
Minority interest                                    26            26
Commitments and contingencies
Stockholders' equity:
    Corporation common stock; $0.01 par
     value; authorized 1,000,000,000 shares;
     outstanding 186,954,645 and 190,998,585
     shares at June 30, 2008 and December
     31, 2007, respectively                           2             2
Additional paid-in capital                          602           868
Accumulated other comprehensive loss               (102)         (147)
Retained earnings                                 1,490         1,353
                                             -----------  ------------
    Total stockholders' equity                    1,992         2,076
                                             -----------  ------------
                                             $    9,935   $     9,622
                                             ===========  ============

(a) Includes six hotels expected to be sold in 2008.

(b) Includes restricted cash of $8 million at June 30, 2008 and
 December 31, 2007, respectively.

(c) Excludes Starwood's share of unconsolidated joint venture debt
 aggregating approximately $597 million and $572 million at June 30,
 2008 and December 31, 2007, respectively.

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
          Non-GAAP to GAAP Reconciliations - Historical Data
                            (in millions)

   Three Months Ended                             Six Months Ended
        June 30,                                      June 30,
------------------------                       -----------------------
                   %                                             %
 2008    2007   Variance                        2008   2007   Variance
------  ------  --------                       -----  ------  --------

                         Reconciliation of Net
                          Income to EBITDA and
                          Adjusted EBITDA
  $105    $145    (27.6) Net income            $ 137  $ 267     (48.7)
    62      44     40.9  Interest expense(a)     116     87      33.3
    44      33     33.3  Income tax expense(b)   117     85      37.6
    79      75      5.3  Depreciation(c)         157    149       5.4
     9       8     12.5  Amortization (d)         17     15      13.3
------  ------  --------                       -----  ------  --------
   299     305     (2.0) EBITDA                  544    603      (9.8)
                         (Gain)/loss on asset
                          dispositions and
   (1)       8      n/m   impairments, net        --     (3)      n/m
                         Restructuring and
                          other special
     1      49    (98.0)  charges, net            10     47     (78.7)
------  ------  --------                       -----  ------  --------
  $299    $362    (17.4) Adjusted EBITDA       $ 554  $ 647     (14.4)
======  ======  ========                       =====  ======  ========

(a) Includes $6 million and $5 million of interest expense related to
 unconsolidated joint ventures for the three months ended June 30,
 2008 and 2007, respectively, and $11 million and $9 million for the
 six months ended June 30, 2008 and 2007, respectively.

(b) Includes $2 million and $0 of tax expense recorded in discontinued
 operations for the three months ended June 30, 2008 and 2007,
 respectively, and $49 million and $1 million for the six months ended
 June 30, 2008 and 2007 respectively.

(c) Includes $7 million and $8 million of Starwood's share of
 depreciation expense of unconsolidated joint ventures for the three
 months ended June 30, 2008 and 2007, respectively, and $14 million
 and $15 million for the six months ended June 30, 2008 and 2007,
 respectively.

(d) Includes $0 million and $1 million of Starwood's share of
 amortization expense of unconsolidated joint ventures for the three
 months ended June 30, 2008 and 2007, respectively, and $1 million and
 $2 million for the six months ended June 30, 2008 and 2007,
 respectively.

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
        Non-GAAP to GAAP Reconciliations - Future Performance
                 (In millions, except per share data)

                               Low Case
Three Months Ended                                      Year Ended
September 30, 2008                                   December 31, 2008
------------------                                   -----------------

 $             96 Net income                          $            403
               59 Interest expense                                 230
               43 Income tax expense                               177
               92 Depreciation and amortization                    360
 ----------------                                     ----------------
              290 EBITDA                                         1,170
               -- Loss on asset disposition and
                   impairments, net                                 --
               -- Restructuring and other special
                   charges, net                                     10
 ----------------                                     ----------------
 $            290 Adjusted EBITDA                     $          1,180
 ================                                     ================

Three Months Ended                                      Year Ended
September 30, 2008                                   December 31, 2008
------------------                                   -----------------

                  Income from continuing operations
 $             96  before special items               $           407
 ----------------                                     ----------------
 $           0.52 EPS before special items be         $          2.17
 ----------------                                     ----------------

                  Special Items
                  Restructuring and other special
               --  charges, net                                   (10)
                  Loss on asset dispositions and
               --  impairments, net                                --
 ----------------                                     ----------------
               -- Total special items - pre-tax                   (10)
               -- Income tax benefit on special items               6
 ----------------                                     ----------------
               -- Total special items - after-tax                  (4)
 ----------------                                     ----------------

 $             96 Income from continuing operations   $           403
 ----------------                                     ----------------
 $           0.52 EPS including special items         $          2.15
 ================                                     ================

                               High Case
Three Months Ended                                      Year Ended
September 30, 2008                                   December 31, 2008
------------------                                   -----------------

 $            106  Net income                         $            430
               59  Interest expense                                230
               48  Income tax expense                              190
               92  Depreciation and amortization                   360
 ----------------                                     ----------------
              305  EBITDA                                        1,210
                   Loss on asset disposition and
               --   impairments, net                                --
                   Restructuring and other special
               --   charges, net                                    10
 ----------------                                     ----------------
 $            305  Adjusted EBITDA                    $          1,220
 ================                                     ================

Three Months Ended                                      Year Ended
September 30, 2008                                   December 31, 2008
------------------                                   -----------------

                   Income from continuing operations
 $            106   before special items              $           434
 ----------------                                     ----------------
 $           0.57  EPS before special items be        $          2.32
 ----------------                                     ----------------

                   Special Items
                   Restructuring and other special
               --   charges, net                                  (10)
                   Loss on asset dispositions and
               --   impairments, net                               --
 ----------------                                     ----------------
               --  Total special items - pre-tax                  (10)
                   Income tax benefit on special
               --   items                                           6
 ----------------                                     ----------------
               --  Total special items - after-tax                 (4)
 ----------------                                     ----------------

 $            106  Income from continuing operations  $           430
 ----------------                                     ----------------
 $           0.57  EPS including special items        $          2.30
 ================                                     ================

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations - Same Store Owned Hotel Revenue and
                               Expenses
                            (In millions)

  Three Months Ended                               Six Months Ended
       June 30,                                        June 30,
-----------------------                         ----------------------
                        Same-Store Owned Hotels
                  %               (1)                            %
 2008    2007  Variance        Worldwide         2008   2007  Variance
------  ------ --------                         ------ ------ --------

                        Revenue
                          Same-Store Owned
  $587    $554     6.0     Hotels               $1,100 $1,031     6.7
                          Hotels Sold or Closed
                           in 2008 and 2007 (12
    --      40     n/m     hotels)                   2     90   (97.8)
                          Hotels Without
                           Comparable Results
    31      38   (18.4)    (6 hotels)               76     70     8.6
                          Other ancillary hotel
     2       2      --     operations                2      2      --
------  ------ --------                         ------ ------ --------
                        Total Owned, Leased and
                         Consolidated Joint
  $620    $634    (2.2)  Venture Hotels Revenue $1,180 $1,193    (1.1)
======  ====== ========                         ====== ====== ========

                        Costs and Expenses
                          Same-Store Owned
  $420    $393    (6.9)    Hotels               $  822 $  765    (7.5)
                          Hotels Sold or Closed
                           in 2008 and 2007 (12
     1      35    97.1     hotels)                   3     73    95.9
                          Hotels Without
                           Comparable Results
    31      31      --     (6 hotels)               65     57   (14.0)
                          Other ancillary hotel
     2       2      --     operations                2      2      --
------  ------ --------                         ------ ------ --------
                        Total Owned, Leased and
                         Consolidated Joint
                         Venture Hotels Costs
  $454    $461     1.5   and Expenses           $  892 $  897     0.6
======  ====== ========                         ====== ====== ========
 

  Three Months Ended                               Six Months Ended
       June 30,                                        June 30,
-----------------------                         ----------------------
                  %     Same-Store Owned Hotels                  %
 2008    2007  Variance      North America       2008   2007  Variance
------  ------ --------                         ------ ------ --------

                        Revenue
                          Same-Store Owned
  $357    $341     4.7     Hotels               $  687 $  654     5.0
                          Hotels Sold or Closed
                           in 2008 and 2007 (12
    --      40     n/m     hotels)                   2     90   (97.8)
                          Hotels Without
                           Comparable Results
    25      27    (7.4)    (3 hotels)               61     55    10.9
------  ------ --------                         ------ ------ --------
                        Total Owned, Leased and
                         Consolidated Joint
  $382    $408    (6.4)  Venture Hotels Revenue $  750 $  799    (6.1)
======  ====== ========                         ====== ====== ========

                        Costs and Expenses
                          Same-Store Owned
  $257    $245    (4.9)    Hotels               $  513 $  486    (5.6)
                          Hotels Sold or Closed
                           in 2008 and 2007 (12
     1      35    97.1     hotels)                   3     73    95.9
                          Hotels Without
                           Comparable Results
    23      22    (4.5)    (3 hotels)               48     42   (14.3)
------  ------ --------                         ------ ------ --------
                        Total Owned, Leased and
                         Consolidated Joint
                         Venture Hotels Costs
  $281    $302     7.0   and Expenses           $  564 $  601     6.2
======  ====== ========                         ====== ====== ========

  Three Months Ended                               Six Months Ended
       June 30,                                        June 30,
-----------------------                         ----------------------
                  %     Same-Store Owned Hotels                  %
 2008    2007  Variance      International       2008   2007  Variance
------  ------ --------                         ------ ------ --------

                        Revenue
                            Same-Store Owned
  $230    $213     8.0       Hotels             $  413 $  377     9.5
                            Hotels Sold or
                             Closed in 2008 and
    --      --      --       2007 (0 hotels)        --     --      --
                            Hotels Without
                             Comparable Results
     6      11   (45.5)      (3 hotels)             15     15      --
                            Other ancillary
     2       2      --       hotel operations        2      2      --
------  ------ --------                         ------ ------ --------
                        Total Owned, Leased and
                         Consolidated Joint
  $238    $226     5.3   Venture Hotels Revenue $  430 $  394     9.1
======  ====== ========                         ====== ====== ========

                        Costs and Expenses
                            Same-Store Owned
  $163    $148   (10.1)      Hotels             $  309 $  279   (10.8)
                            Hotels Sold or
                             Closed in 2008 and
    --      --      --       2007 (0 hotels)        --     --      --
                            Hotels Without
                             Comparable Results
     8       9    11.1       (3 hotels)             17     15   (13.3)
                            Other ancillary
     2       2      --       hotel operations        2      2      --
------  ------ --------                         ------ ------ --------
                        Total Owned, Leased and
                         Consolidated Joint
                         Venture Hotels Costs
  $173    $159    (8.8)  and Expenses           $  328 $  296   (10.8)
======  ====== ========                         ====== ====== ========

(1) Same-Store Owned Hotel Results exclude 12 hotels sold or closed in
 2008 and 2007 and 6 hotels without comparable results.

Starwood Hotels&Resorts Worldwide, Inc.
Systemwide(1) Statistics - Same Store
For the Three Months Ended June 30,
UNAUDITED
 

                               Systemwide -          Systemwide -
                                 Worldwide           North America
                           --------------------- ---------------------
                            2008    2007   Var.   2008    2007   Var.
                           ------- ------- ----- ------- ------- -----
 

TOTAL HOTELS
  REVPAR ($)               135.91  123.97   9.6% 129.96  126.12   3.0%
  ADR ($)                  189.89  174.04   9.1% 175.75  169.44   3.7%
  Occupancy (%)              71.6%   71.2%  0.4    73.9%   74.4% -0.5
 

SHERATON
  REVPAR ($)               117.26  106.16  10.5% 113.84  110.08   3.4%
  ADR ($)                  166.04  151.30   9.7% 155.04  149.14   4.0%
  Occupancy (%)              70.6%   70.2%  0.4    73.4%   73.8% -0.4
 

WESTIN
  REVPAR ($)               149.90  141.92   5.6% 146.03  141.03   3.5%
  ADR ($)                  201.95  191.44   5.5% 192.58  185.55   3.8%
  Occupancy (%)              74.2%   74.1%  0.1    75.8%   76.0% -0.2
 

ST. REGIS/LUXURY
 COLLECTION
  REVPAR ($)               258.85  237.46   9.0% 232.69  233.18  -0.2%
  ADR ($)                  391.61  349.19  12.1% 347.27  340.97   1.8%
  Occupancy (%)              66.1%   68.0% -1.9    67.0%   68.4% -1.4
 

LE MERIDIEN
  REVPAR ($)               165.26  139.22  18.7% 246.42  239.06   3.1%
  ADR ($)                  230.05  198.27  16.0% 318.47  304.26   4.7%
  Occupancy (%)              71.8%   70.2%  1.6    77.4%   78.6% -1.2
 

W
  REVPAR ($)               227.78  224.46   1.5% 230.19  229.27   0.4%
  ADR ($)                  301.72  294.87   2.3% 299.88  292.42   2.6%
  Occupancy (%)              75.5%   76.1% -0.6    76.8%   78.4% -1.6
 

FOUR POINTS
  REVPAR ($)                87.08   79.49   9.5%  80.48   77.89   3.3%
  ADR ($)                  120.76  110.06   9.7% 111.05  105.44   5.3%
  Occupancy (%)              72.1%   72.2% -0.1    72.5%   73.9% -1.4
 

OTHER
  REVPAR ($)               116.23  110.34   5.3% 116.23  110.34   5.3%
  ADR ($)                  167.85  162.99   3.0% 167.85  162.99   3.0%
  Occupancy (%)              69.2%   67.7%  1.5    69.2%   67.7%  1.5
 
 
 
 

                                                     Systemwide -
                                                     International
                                                 ---------------------
                                                  2008    2007   Var.
                                                 ------- ------- -----
 

TOTAL HOTELS
  REVPAR ($)                                     143.66  121.15  18.6%
  ADR ($)                                        209.78  180.71  16.1%
  Occupancy (%)                                    68.5%   67.0%  1.5
 

SHERATON
  REVPAR ($)                                     121.57  101.22  20.1%
  ADR ($)                                        181.16  154.36  17.4%
  Occupancy (%)                                    67.1%   65.6%  1.5
 

WESTIN
  REVPAR ($)                                     161.09  144.52  11.5%
  ADR ($)                                        231.52  210.34  10.1%
  Occupancy (%)                                    69.6%   68.7%  0.9
 

ST. REGIS/LUXURY COLLECTION
  REVPAR ($)                                     276.73  240.37  15.1%
  ADR ($)                                        422.61  354.85  19.1%
  Occupancy (%)                                    65.5%   67.7% -2.2
 

LE MERIDIEN
  REVPAR ($)                                     158.62  131.00  21.1%
  ADR ($)                                        222.20  188.41  17.9%
  Occupancy (%)                                    71.4%   69.5%  1.9
 

W
  REVPAR ($)                                     204.70  178.23  14.9%
  ADR ($)                                        323.08  329.01  -1.8%
  Occupancy (%)                                    63.4%   54.2%  9.2
 

FOUR POINTS
  REVPAR ($)                                     104.74   83.75  25.1%
  ADR ($)                                        147.24  123.48  19.2%
  Occupancy (%)                                    71.1%   67.8%  3.3
 

OTHER
  REVPAR ($)
  ADR ($)
  Occupancy (%)
 
 
 

(1) Includes same store owned, leased, managed, and franchised hotels

Starwood Hotels&Resorts Worldwide, Inc.
Worldwide Hotel Results - Same Store
For the Three Months Ended June 30,
UNAUDITED

                              Systemwide (1)     Company Operated (2)
                           --------------------- ---------------------
                            2008    2007   Var.   2008    2007   Var.
                           ------- ------- ----- ------- ------- -----
 

TOTAL WORLDWIDE
   REVPAR ($)              135.91  123.97   9.6% 154.48  140.09  10.3%
   ADR ($)                 189.89  174.04   9.1% 212.12  194.34   9.1%
   Occupancy (%)             71.6%   71.2%  0.4    72.8%   72.1%  0.7
 

NORTH AMERICA
   REVPAR ($)              129.96  126.12   3.0% 160.21  155.25   3.2%
   ADR ($)                 175.75  169.44   3.7% 209.16  202.02   3.5%
   Occupancy (%)             73.9%   74.4% -0.5    76.6%   76.9% -0.3
 

EUROPE
   REVPAR ($)              189.07  159.01  18.9% 206.86  178.08  16.2%
   ADR ($)                 266.68  224.53  18.8% 281.78  243.75  15.6%
   Occupancy (%)             70.9%   70.8%  0.1    73.4%   73.1%  0.3
 

AFRICA&MIDDLE EAST
   REVPAR ($)              146.32  116.03  26.1% 149.40  117.84  26.8%
   ADR ($)                 200.47  167.32  19.8% 202.26  168.51  20.0%
   Occupancy (%)             73.0%   69.3%  3.7    73.9%   69.9%  4.0
 

ASIA PACIFIC
   REVPAR ($)              112.94   99.05  14.0% 109.11   95.14  14.7%
   ADR ($)                 175.23  154.65  13.3% 170.10  149.43  13.8%
   Occupancy (%)             64.5%   64.0%  0.5    64.1%   63.7%  0.4
 

LATIN AMERICA
   REVPAR ($)               90.37   77.86  16.1%  96.17   83.48  15.2%
   ADR ($)                 137.08  128.27   6.9% 150.05  139.42   7.6%
   Occupancy (%)             65.9%   60.7%  5.2    64.1%   59.9%  4.2
 
 

(1) Includes same store owned, leased, managed, and franchised hotels

(2) Includes same store owned, leased, and managed hotels

Starwood Hotels&Resorts Worldwide, Inc.
Owned Hotel Results - Same Store (1)
For the Three Months Ended June 30,
UNAUDITED
 
 

                               WORLDWIDE            NORTH AMERICA
                         ---------------------- ----------------------
                          2008     2007    Var.  2008     2007    Var.
                         -------- -------- ---- -------- -------- ----

TOTAL HOTELS                   67 Hotels              36 Hotels
                         ---------------------- ----------------------
   REVPAR ($)             183.05   171.47  6.8%  184.03   174.86  5.2%
   ADR ($)                246.17   232.29  6.0%  237.42   228.29  4.0%
   Occupancy (%)            74.4%    73.8% 0.6     77.5%    76.6% 0.9

   Total Revenue         586,912  553,583  6.0% 357,206  340,786  4.8%
   Total Expenses        420,386  393,200  6.9% 257,741  245,150  5.1%
 
 
 

BRANDED HOTELS                 59 Hotels              28 Hotels
                         ---------------------- ----------------------
   REVPAR ($)             190.34   178.14  6.8%  196.94   187.14  5.2%
   ADR ($)                254.06   239.15  6.2%  249.03   239.03  4.2%
   Occupancy (%)            74.9%    74.5% 0.4     79.1%    78.3% 0.8

   Total Revenue         548,873  518,531  5.9% 319,167  305,734  4.4%
   Total Expenses        389,449  363,545  7.1% 226,804  215,495  5.2%
 
 
 
 
 

                                                    INTERNATIONAL
                                               -----------------------
                                                2008     2007    Var.
                                               -------- -------- -----

TOTAL HOTELS                                          31 Hotels
                                               -----------------------
   REVPAR ($)                                   181.50   166.06   9.3%
   ADR ($)                                      261.76   239.34   9.4%
   Occupancy (%)                                  69.3%    69.4% -0.1

   Total Revenue                               229,706  212,797   7.9%
   Total Expenses                              162,645  148,050   9.9%
 
 
 

BRANDED HOTELS                                        31 Hotels
                                               -----------------------
   REVPAR ($)                                   181.50   166.06   9.3%
   ADR ($)                                      261.76   239.34   9.4%
   Occupancy (%)                                  69.3%    69.4% -0.1

   Total Revenue                               229,706  212,797   7.9%
   Total Expenses                              162,645  148,050   9.9%
 
 
 

(1) Hotel Results exclude 12 hotels sold or closed and 6 hotels
 without comparable results during 2008&2007

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
           Management Fees, Franchise Fees and Other Income
                 For the Three Months Ended June 30,
                        UNAUDITED ($ millions)
 

                                            Worldwide
                            ------------------------------------------
                              2008      2007    $ Variance  % Variance
                            --------  --------  ----------  ----------

Management Fees:
 Base Fees                        75        72           3        4.2%
 Incentive Fees                   40        34           6       17.6%
                            --------  --------  ----------  ----------
Total Management Fees            115       106           9        8.5%

Franchise Fees                    44        37           7       18.9%
                            --------  --------  ----------  ----------

Total Management&Franchise
 Fees                            159       143          16       11.2%

Other Management&Franchise
 Revenues (1)                     24        21           3       14.3%
                            --------  --------  ----------  ----------

Total Management&Franchise
 Revenues                        183       164          19       11.6%

Other (2)                         35        31           4       12.9%
                            --------  --------  ----------  ----------

Management Fees, Franchise
 Fees&Other Income             218       195          23       11.8%
                            ========  ========  ==========  ==========
 

(1) Other Management&Franchise Revenues primarily includes the
 amortization of deferred gains of approximately $21 million in 2008
 and $20 million in 2007 resulting from the sales of hotels subject to
 long-term management contracts and termination fees.

(2) Amount includes revenues from the Company's Bliss spa and product
 business and other miscellaneous revenue.

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
        Vacation Ownership&Residential Revenues and Expenses
                 For the Three Months Ended June 30,
                        UNAUDITED ($ millions)
 
 

                                        2008        2007    % Variance
                                     -----------  --------  ----------

Originated Sales Revenues (1) --
 Vacation Ownership Sales                   142        191     (25.7%)
Other Sales and Services Revenues
 (2)                                         51         47       8.5%
Deferred Revenues -- Percentage of
 Completion                                  (5)        30       n/m
Deferred Revenues -- Other (3)                4          -       n/m
                                     -----------  --------  ----------
Vacation Ownership Sales and
 Services Revenues                          192        268     (28.4%)
Residential Sales and Services
 Revenues                                     2          6     (66.7%)
                                     -----------  --------  ----------
Total Vacation Ownership &
 Residential Sales and Services
 Revenues                                   194        274     (29.2%)
                                     ===========  ========  ==========

Originated Sales Expenses (4) --
 Vacation Ownership Sales                    95        121      21.5%
Other Expenses (5)                           57         54      (5.6%)
Deferred Expenses -- Percentage of
 Completion                                  (2)        15       n/m
Deferred Expenses -- Other                    8          8         -
                                     -----------  --------  ----------
Vacation Ownership Expenses                 158        198      20.2%
Residential Expenses                          1          3      66.7%
                                     -----------  --------  ----------
Total Vacation Ownership &
 Residential Expenses                       159        201      20.9%
                                     ===========  ========  ==========
 

(1) Timeshare sales revenue originated at each sales location before
 deferrals of revenue for U.S. GAAP reporting purposes

(2) Includes resort income, interest income, gain on sale of notes
 receivable, and miscellaneous other revenues

(3) Includes deferral of revenue for contracts still in rescission
 period, contracts that do not yet meet the requirements of SFAS No.
 66 or SFAS No. 152 and provision for loan loss, offset by the
 recognition of revenues previously deferred where the recission
 period has expired

(4) Timeshare cost of sales and sales&marketing expenses before
 deferrals of sales expenses for U.S. GAAP reporting purposes

(5) Includes resort, general and administrative, and other
 miscellaneous expenses

Note: Deferred revenue is calculated based on the Percentage of
 Completion ("POC") of the project. Deferred expenses, also based on
 POC, include product costs and direct sales and marketing costs only.
 Indirect sales and marketing costs are not deferred per SFAS No. 152.

n/m = not meaningful

Starwood Hotels&Resorts Worldwide, Inc.
Systemwide(1) Statistics - Same Store
For the Six Months Ended June 30,
UNAUDITED
 

                               Systemwide -          Systemwide -
                                 Worldwide           North America
                           --------------------- ---------------------
                            2008    2007   Var.   2008    2007   Var.
                           ------- ------- ----- ------- ------- -----
 

TOTAL HOTELS
   REVPAR ($)              129.37  118.85   8.9% 123.14  119.72   2.9%
   ADR ($)                 188.17  172.07   9.4% 175.34  167.75   4.5%
   Occupancy (%)             68.8%   69.1% -0.3    70.2%   71.4% -1.2
 

SHERATON
   REVPAR ($)              111.05  101.89   9.0% 104.55  101.74   2.8%
   ADR ($)                 163.72  149.41   9.6% 150.80  144.50   4.4%
   Occupancy (%)             67.8%   68.2% -0.4    69.3%   70.4% -1.1
 

WESTIN
   REVPAR ($)              144.16  136.88   5.3% 142.90  138.50   3.2%
   ADR ($)                 202.75  190.48   6.4% 196.52  187.10   5.0%
   Occupancy (%)             71.1%   71.9% -0.8    72.7%   74.0% -1.3
 

ST. REGIS/LUXURY
 COLLECTION
   REVPAR ($)              247.85  227.19   9.1% 248.63  244.14   1.8%
   ADR ($)                 379.84  340.91  11.4% 365.04  359.67   1.5%
   Occupancy (%)             65.3%   66.6% -1.3    68.1%   67.9%  0.2
 

LE MERIDIEN
   REVPAR ($)              157.40  133.65  17.8% 220.76  214.33   3.0%
   ADR ($)                 225.50  194.87  15.7% 306.56  288.76   6.2%
   Occupancy (%)             69.8%   68.6%  1.2    72.0%   74.2% -2.2
 

W
   REVPAR ($)              216.35  208.72   3.7% 214.71  211.10   1.7%
   ADR ($)                 297.24  283.75   4.8% 289.42  279.14   3.7%
   Occupancy (%)             72.8%   73.6% -0.8    74.2%   75.6% -1.4
 

FOUR POINTS
   REVPAR ($)               79.15   72.89   8.6%  74.54   71.60   4.1%
   ADR ($)                 115.91  106.18   9.2% 109.44  103.13   6.1%
   Occupancy (%)             68.3%   68.7% -0.4    68.1%   69.4% -1.3
 

OTHER
   REVPAR ($)               97.98   93.68   4.6%  97.98   93.68   4.6%
   ADR ($)                 160.16  154.37   3.8% 160.16  154.37   3.8%
   Occupancy (%)             61.2%   60.7%  0.5    61.2%   60.7%  0.5
 
 
 
 

                                                     Systemwide -
                                                     International
                                                 ---------------------
                                                  2008    2007   Var.
                                                 ------- ------- -----
 

TOTAL HOTELS
   REVPAR ($)                                    137.48  117.73  16.8%
   ADR ($)                                       205.73  178.15  15.5%
   Occupancy (%)                                   66.8%   66.1%  0.7
 

SHERATON
   REVPAR ($)                                    119.16  102.07  16.7%
   ADR ($)                                       180.67  156.02  15.8%
   Occupancy (%)                                   66.0%   65.4%  0.6
 

WESTIN
   REVPAR ($)                                    147.72  132.29  11.7%
   ADR ($)                                       221.94  201.20  10.3%
   Occupancy (%)                                   66.6%   65.8%  0.8
 

ST. REGIS/LUXURY COLLECTION
   REVPAR ($)                                    247.29  215.14  14.9%
   ADR ($)                                       391.20  327.15  19.6%
   Occupancy (%)                                   63.2%   65.8% -2.6
 

LE MERIDIEN
   REVPAR ($)                                    152.16  126.97  19.8%
   ADR ($)                                       218.57  186.39  17.3%
   Occupancy (%)                                   69.6%   68.1%  1.5
 

W
   REVPAR ($)                                    232.15  185.80  24.9%
   ADR ($)                                       391.14  346.14  13.0%
   Occupancy (%)                                   59.4%   53.7%  5.7
 

FOUR POINTS
   REVPAR ($)                                     93.36   76.85  21.5%
   ADR ($)                                       135.59  115.98  16.9%
   Occupancy (%)                                   68.9%   66.3%  2.6
 

OTHER
   REVPAR ($)
   ADR ($)
   Occupancy (%)
 
 
 

(1) Includes same store owned, leased, managed, and franchised hotels

Starwood Hotels&Resorts Worldwide, Inc.
Worldwide Hotel Results - Same Store
For the Six Months Ended June 30,
UNAUDITED

                              Systemwide (1)     Company Operated (2)
                           --------------------- ---------------------
                            2008    2007   Var.   2008    2007   Var.
                           ------- ------- ----- ------- ------- -----
 

TOTAL WORLDWIDE
   REVPAR ($)              129.37  118.85   8.9% 146.59  133.45   9.8%
   ADR ($)                 188.17  172.07   9.4% 208.84  190.81   9.4%
   Occupancy (%)             68.8%   69.1% -0.3    70.2%   69.9%  0.3
 

NORTH AMERICA
   REVPAR ($)              123.14  119.72   2.9% 151.18  146.87   2.9%
   ADR ($)                 175.34  167.75   4.5% 207.50  199.06   4.2%
   Occupancy (%)             70.2%   71.4% -1.2    72.9%   73.8% -0.9
 

EUROPE
   REVPAR ($)              161.36  138.14  16.8% 175.31  151.08  16.0%
   ADR ($)                 246.95  210.02  17.6% 259.91  225.24  15.4%
   Occupancy (%)             65.3%   65.8% -0.5    67.4%   67.1%  0.3
 

AFRICA&MIDDLE EAST
   REVPAR ($)              150.99  124.07  21.7% 153.19  125.64  21.9%
   ADR ($)                 208.71  177.49  17.6% 210.60  178.92  17.7%
   Occupancy (%)             72.3%   69.9%  2.4    72.7%   70.2%  2.5
 

ASIA PACIFIC
   REVPAR ($)              119.91  104.39  14.9% 114.78   98.53  16.5%
   ADR ($)                 183.36  159.81  14.7% 175.89  152.42  15.4%
   Occupancy (%)             65.4%   65.3%  0.1    65.3%   64.6%  0.7
 

LATIN AMERICA
   REVPAR ($)               95.88   85.34  12.4% 103.06   92.64  11.2%
   ADR ($)                 143.70  134.86   6.6% 155.28  147.54   5.2%
   Occupancy (%)             66.7%   63.3%  3.4    66.4%   62.8%  3.6
 
 

(1) Includes same store owned, leased, managed, and franchised hotels

(2) Includes same store owned, leased, and managed hotels

Starwood Hotels&Resorts Worldwide, Inc.
Owned Hotel Results - Same Store (1)
For the Six Months Ended June 30,
UNAUDITED
 
 

                            WORLDWIDE               NORTH AMERICA
                    -------------------------- -----------------------
                      2008       2007     Var.  2008     2007    Var.
                    ---------- ---------- ---- -------- -------- -----

TOTAL HOTELS                67 Hotels                 36 Hotels
                    -------------------------- -----------------------
   REVPAR ($)          172.12     159.50  7.9%  176.32   165.65   6.4%
   ADR ($)             240.87     223.67  7.7%  240.36   225.80   6.4%
   Occupancy (%)         71.5%      71.3% 0.2     73.4%    73.4%  0.0

   Total Revenue    1,100,108  1,030,700  6.7% 687,469  653,112   5.3%
   Total Expenses     821,742    765,445  7.4% 512,813  485,793   5.6%
 
 
 

BRANDED HOTELS              59 Hotels                 28 Hotels
                    -------------------------- -----------------------
   REVPAR ($)          180.25     166.72  8.1%  191.23   179.34   6.6%
   ADR ($)             248.33     230.03  8.0%  252.71   236.69   6.8%
   Occupancy (%)         72.6%      72.5% 0.1     75.7%    75.8% -0.1

   Total Revenue    1,035,105    968,650  6.9% 622,466  591,062   5.3%
   Total Expenses     763,081    709,193  7.6% 454,152  429,541   5.7%
 
 
 
 
 

                                                    INTERNATIONAL
                                               -----------------------
                                                2008     2007    Var.
                                               -------- -------- -----

TOTAL HOTELS                                          31 Hotels
                                               -----------------------
   REVPAR ($)                                   165.33   149.56  10.5%
   ADR ($)                                      241.75   219.94   9.9%
   Occupancy (%)                                  68.4%    68.0%  0.4

   Total Revenue                               412,639  377,588   9.3%
   Total Expenses                              308,929  279,652  10.5%
 
 
 

BRANDED HOTELS                                        31 Hotels
                                               -----------------------
   REVPAR ($)                                   165.33   149.56  10.5%
   ADR ($)                                      241.75   219.94   9.9%
   Occupancy (%)                                  68.4%    68.0%  0.4

   Total Revenue                               412,639  377,588   9.3%
   Total Expenses                              308,929  279,652  10.5%
 
 
 

(1) Hotel Results exclude 12 hotels sold or closed and 6 hotels
 without comparable results during 2008&2007

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
           Management Fees, Franchise Fees and Other Income
                  For the Six Months Ended June 30,
                        UNAUDITED ($ millions)
 

                                            Worldwide
                            ------------------------------------------
                              2008      2007    $ Variance  % Variance
                            --------  --------  ----------  ----------

Management Fees:
 Base Fees                       143       134          9         6.7%
 Incentive Fees                   77        63         14        22.2%
                            --------  --------  ----------  ----------
Total Management Fees            220       197         23        11.7%

Franchise Fees                    83        70         13        18.6%
                            --------  --------  ----------  ----------

Total Management &
 Franchise Fees                  303       267         36        13.5%

Other Management &
 Franchise Revenues (1)           49        43          6        14.0%
                            --------  --------  ----------  ----------

Total Management &
 Franchise Revenues              352       310         42        13.5%

Other (2)                         72        76         (4)       -5.3%
                            --------  --------  ----------  ----------

Management Fees, Franchise
 Fees&Other Income             424       386         38         9.8%
                            ========  ========  ==========  ==========
 

(1) Other Management&Franchise Revenues primarily includes the
 amortization of deferred gains of approximately $42 million in 2008
 and $40 million in 2007 resulting from the sales of hotels subject to
 long-term management contracts and termination fees.

(2) The amount includes revenues from the Company's Bliss spa and
 product business and other miscellaneous revenue. In 2007, amount
 includes $18 million of income earned from the Company's carried
 interests in the Westin Boston Waterfront Hotel which was earned when
 the hotel was sold by its owners in January 2007.

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
        Vacation Ownership&Residential Revenues and Expenses
                  For the Six Months Ended June 30,
                        UNAUDITED ($ millions)
 
 

                                         2008       2007    % Variance
                                       ---------  --------  ----------

Originated Sales Revenues (1) --
 Vacation Ownership Sales                   305        366     (16.7%)
Other Sales and Services Revenues (2)       105         91      15.4%
Deferred Revenues -- Percentage of
 Completion                                 (29)        35       n/m
Deferred Revenues -- Other (3)                2          4     (50.0%)
                                       ---------  --------  ----------
Vacation Ownership Sales and Services
 Revenues                                   383        496     (22.8%)
Residential Sales and Services
 Revenues                                     4         10     (60.0%)
                                       ---------  --------  ----------
Total Vacation Ownership&Residential
 Sales and Services Revenues                387        506     (23.5%)
                                       =========  ========  ==========

Originated Sales Expenses (4) --
 Vacation Ownership Sales                   212        235       9.8%
Other Expenses (5)                          103        103         -
Deferred Expenses -- Percentage of
 Completion                                 (15)        18       n/m
Deferred Expenses -- Other                   13         16      18.8%
                                       ---------  --------  ----------
Vacation Ownership Expenses                 313        372      15.9%
Residential Expenses                          4          8      50.0%
                                       ---------  --------  ----------
Total Vacation Ownership&Residential
 Expenses                                   317        380      16.6%
                                       =========  ========  ==========
 

(1) Timeshare sales revenue originated at each sales location before
 deferrals of revenue for U.S. GAAP reporting purposes

(2) Includes resort income, interest income, gain on sale of notes
 receivable, and miscellaneous other revenues

(3) Includes deferral of revenue for contracts still in rescission
 period, contracts that do not yet meet the requirements of SFAS No.
 66 or SFAS No. 152 and provision for loan loss, offset by the
 recognition of revenues previously deferred where the recission
 period has expired

(4) Timeshare cost of sales and sales&marketing expenses before
 deferrals of sales expenses for U.S. GAAP reporting purposes

(5) Includes resort, general and administrative, and other
 miscellaneous expenses

Note: Deferred revenue is calculated based on the Percentage of
 Completion ("POC") of the project. Deferred expenses, also based on
 POC, include product costs and direct sales and marketing costs only.
 Indirect sales and marketing costs are not deferred per SFAS No. 152.

n/m = not meaningful

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
       Hotels Without Comparable Results&Other Selected Items
                         As of June 30, 2008
                        UNAUDITED ($ millions)

Properties without comparable results in 2008:

Property                                      Location
--------------------------------------------- ------------------------
Sheraton Steamboat Resort&Conference Center Steamboat Springs, CO
Westin St. John Resort&Villas               St. John, Virgin Islands
Westin Peachtree                              Atlanta, GA
Sheraton Fiji Resort                          Nadi, Fiji
Westin Denarau Island Resort&Spa            Nadi, Fiji
Hotel Des Bains                               Venice, Italy
 
 

Properties sold or closed in 2008 and 2007:

Property                                      Location
--------------------------------------------- ------------------------
Westin Fort Lauderdale                        Ft. Lauderdale, FL
Days Inn City Center                          Portland, OR
Sheraton Nashua Hotel                         Nashua, NH
Four Points by Sheraton Denver Cherry Creek   Denver, CO
Sheraton Bal Harbour Beach Resort             Bal Harbour, FL
Sheraton Edison                               Edison, NJ
Four Points Hyannis                           Hyannis, MA
Four Points Portland                          Portland, OR
Sheraton South Portland                       Portland, ME
Westin Galleria                               Houston, TX
Westin Oaks                                   Houston, TX
Caesar's Brookdale                            Scotrun, PA

Selected Balance Sheet and Cash Flow Items:

Cash and cash equivalents
(including restricted cash of $180 million)                  $     308
Debt                                                         $   4,054
 
 

Revenues and Expenses Associated with Assets Sold or Closed in 2008
 and 2007 (1):
 

                                      Q1    Q2    Q3    Q4   Full Year
                                     ----  ----  ----  ----  ---------
Hotels Sold or Closed in 2007:
2007
Revenues                             $ 48  $ 39  $ 24  $ 10  $     121
Expenses (excluding depreciation)    $ 36  $ 33  $ 18  $  9  $      96

Hotels Sold or Closed in 2008:
2008
Revenues                             $  2  $  -  $  -  $  -  $       2
Expenses (excluding depreciation)    $  2  $  1  $  -  $  -  $       3

2007
Revenues                             $  2  $  1  $  2  $  1  $       6
Expenses (excluding depreciation)    $  2  $  2  $  2  $  2  $       8

(1) Results consist of 1 hotel closed in 2008 and 11 hotels sold or
 closed in 2007. These amounts are included in the revenues and
 expenses from owned, leased and consolidated joint venture hotels in
 2008 and 2007.

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
                         Capital Expenditures
               For the Three Months Ended June 30, 2008

                                                            Q2    YTD
                                                           ----  -----
 Capital Expenditures:
 Owned, Leased and Consolidated Joint Venture Hotels         61    118
 Corporate/IT                                                18     43
                                                           ----  -----
 Subtotal                                                    79    161

 Vacation Ownership Capital Expenditures:
 Capital expenditures (includes land acquisitions)           26     54
 Net capital expenditures for inventory (1)                  84    151
                                                           ----  -----
 Subtotal                                                   110    205

 Development Capital                                          8     28
                                                           ----  -----

 Total Capital Expenditures                                 197    394
                                                           ====  =====

(1) Represents gross inventory capital expenditures of $120 and $226
 in the three and six months ended June 30, 2008, respectively, less
 cost of sales of $36 and $75 in the three and six months ended June
 30, 2008, respectively.

Starwood Hotels&Resorts Worldwide, Inc.
2008 Divisional Hotel Inventory Summary by Ownership by Brand
June 30, 2008
 
 

                         ---------------------------------------------
                               NAD            EAME           LAD
                         ---------------------------------------------
                          Hotels  Rooms   Hotels  Rooms  Hotels  Rooms
                         ---------------------------------------------
Owned
Sheraton                      10   5,030       8  1,727       5  2,713
Westin                         5   2,849       5  1,065       3    902
Four Points                    3     579       -      -       -      -
W                              9   3,172       -      -       -      -
Luxury Collection              1     647       7    828       1    180
St. Regis                      3     668       1    161       -      -
Other                          8   2,189       -      -       -      -
                         ---------------------------------------------
Total Owned                   39  15,134      21  3,781       9  3,795
                         ---------------------------------------------

Managed&UJV
Sheraton                      45  29,699      69 20,504      14  2,751
Westin                        49  26,773      15  4,089       -      -
Four Points                    2     646       8  1,536       3    427
W                              9   2,735       1    134       1    237
Luxury Collection              9   2,054       9  1,527       7    250
St. Regis                      5   1,091       1     95       -      -
Le Meridien                    5     741      67 16,456       1    130
Other                          1       -       1      -       -      -
                         ---------------------------------------------
Total Managed&UJV          125  63,739     171 44,341      26  3,795
                         ---------------------------------------------

Franchised
Sheraton                     150  45,100      27  6,626       8  2,204
Westin                        50  16,770       5  2,030       3    600
Four Points                   87  14,488      12  1,671       6    840
Luxury Collection              2     385      14  1,795       -      -
Le Meridien                    5   1,553       8  3,178       1    213
aloft                          3     402       -      -       -      -
                         ---------------------------------------------
Total Franchised             297  78,698      66 15,300      18  3,857
                         ---------------------------------------------

Systemwide
Sheraton                     205  79,829     104 28,857      27  7,668
Westin                       104  46,392      25  7,184       6  1,502
Four Points                   92  15,713      20  3,207       9  1,267
W                             18   5,907       1    134       1    237
Luxury Collection             12   3,086      30  4,150       8    430
St. Regis                      8   1,759       2    256       -      -
Le Meridien                   10   2,294      75 19,634       2    343
aloft                          3     402       -      -       -      -
Other                          9   2,189       1      -       -      -
                         ---------------------------------------------
Total Systemwide             461 157,571     258 63,422      53 11,447
                         =============================================
 
 

                                       -------------------------------
                                             ASIA           Total
                                       -------------------------------
                                         Hotels  Rooms  Hotels  Rooms
                                       -------------------------------
Owned
Sheraton                                      2    821      25  10,291
Westin                                        1    273      14   5,089
Four Points                                   1    630       4   1,209
W                                             -      -       9   3,172
Luxury Collection                             -      -       9   1,655
St. Regis                                     -      -       4     829
Other                                         -      -       8   2,189
                                       -------------------------------
Total Owned                                   4  1,724      73  24,434
                                       -------------------------------

Managed&UJV
Sheraton                                     52 18,401     180  71,355
Westin                                       15  5,432      79  36,294
Four Points                                   6  1,639      19   4,248
W                                             2    330      13   3,436
Luxury Collection                             -      -      25   3,831
St. Regis                                     3    900       9   2,086
Le Meridien                                  22  5,802      95  23,129
Other                                         -      -       2       -
                                       -------------------------------
Total Managed&UJV                         100 32,504     422 144,379
                                       -------------------------------

Franchised
Sheraton                                     14  5,651     199  59,581
Westin                                        7  1,939      65  21,339
Four Points                                   2    235     107  17,234
Luxury Collection                             7  2,022      23   4,202
Le Meridien                                   2    554      16   5,498
aloft                                         -      -       3     402
                                       -------------------------------
Total Franchised                             32 10,401     413 108,256
                                       -------------------------------

Systemwide
Sheraton                                     68 24,873     404 141,227
Westin                                       23  7,644     158  62,722
Four Points                                   9  2,504     130  22,691
W                                             2    330      22   6,608
Luxury Collection                             7  2,022      57   9,688
St. Regis                                     3    900      13   2,915
Le Meridien                                  24  6,356     111  28,627
aloft                                         -      -       3     402
Other                                         -      -      10   2,189
                                       -------------------------------
Total Systemwide                            136 44,629     908 277,069
                                       ===============================

              STARWOOD HOTELS&RESORTS WORLDWIDE, INC.
                Vacation Ownership Inventory Pipeline
                         As of June 30, 2008
                              UNAUDITED
 
 

 ---------------------------------------------------------------------
                                                 # Resorts
                                     ---------------------------------

                                                    In       In Active
 Brand                               Total (2)  Operations     Sales
 ---------------------------------------------------------------------

 Sheraton                                    8            6          7
 Westin                                     12            6          7
 St. Regis                                   2            2          2
 The Luxury Collection                       1            1          1
 Unbranded                                   3            3          -
                                     ---------------------------------
 Total SVO, Inc.                            26           18         17
                                     ---------------------------------

 Unconsolidated Joint Ventures
  (UJV's)                                    2            1          1
                                     ---------------------------------
 Total including UJV's                      28           19         18
 ---------------------------------------------------------------------

 ---------------------------------------------------------------------
 Total Intervals Including UJV's (7)
 ---------------------------------------------------------------------
 
 
 
 
 

 ---------------------------------------------------------------------
                                     # of Units (1)
                  ----------------------------------------------------

                                                    Future
 Brand                               Pre-sales/    Capacity  Total at
                    Completed (3)  Development (4)  (5),(6)  Buildout
 ---------------------------------------------------------------------

 Sheraton                   2,781              307     1,394     4,482
 Westin                     1,283              180     1,070     2,533
 St. Regis                     51               12         -        63
 The Luxury
  Collection                    6                -         6        12
 Unbranded                    124                -         1       125
                  ----------------------------------------------------
 Total SVO, Inc.            4,245              499     2,471     7,215
                  ----------------------------------------------------

 Unconsolidated
  Joint Ventures
  (UJV's)                     198                -        40       238
                  ----------------------------------------------------
 Total including
  UJV's                     4,443              499     2,511     7,453
 ---------------------------------------------------------------------

 ---------------------------------------------------------------------
 Total Intervals
  Including UJV's
  (7)                     231,036           25,948   130,572   387,556
 ---------------------------------------------------------------------
 
 
 

 (1) Lockoff units are considered as one unit for this analysis.

 (2) Includes resorts in operation and in active sales.

 (3) Completed units include those units that have a certificate of
  occupancy.

 (4) Units in Pre-sales/Development are in various stages of
  development (including the permitting stage), most of which are
  currently being offered for sale to customers.

 (5) Based on owned land and average density in existing marketplaces

 (6) Future units indicated above include planned timeshare units on
  land owned by the Company or applicable UJV that have received all
  major governmental land use approvals for the development of
  timeshare. There can be no assurance that such units will in fact be
  developed and, if developed, the time period of such development
  (which may be more than several years in the future). Some of the
  projects may require additional third-party approvals or permits for
  development and build out and may also be subject to legal
  challenges as well as a commitment of capital by the Company. The
  actual number of units to be constructed may be significantly lower
  than the number of future units indicated.

 (7) Assumes 52 intervals per unit.
 


 

The Company has included the above supplemental information concerning special items to assist investors in analyzing Starwood’s financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations. 
Starwood will be conducting a conference call to discuss the second quarter financial results at 10:30 a.m. (EST) today at (913) 312-0408. The conference call will be available through simultaneous web cast in the Investor Relations/Press Releases section of the Company’s website at http://www.starwoodhotels.com. A replay of the conference call will also be available from 1:30 p.m. (EST) today through Thursday, July 31, 2008 at 12:00 midnight (EST) on both the Company’s website and via telephone replay at (719) 457-0820 (access code 4161680). 

Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations. All references to "net capital expenditures" mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and amortization. The Company believes that EBITDA is a useful measure of the Company's operating performance due to the significance of the Company's long-lived assets and level of indebtedness. EBITDA is a commonly used measure of performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company's operating performance. It also facilitates comparisons between the Company and its competitors. The Company's management has historically adjusted EBITDA (i.e., "Adjusted EBITDA") when evaluating operating performance for the total Company as well as for individual properties or groups of properties because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items, such as revenues and costs and expenses from hotels sold, restructuring and other special charges and gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. The Company's management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. Due to guidance from the Securities and Exchange Commission, the Company now does not reflect such items when calculating EBITDA; however, the Company continues to adjust for these special items and refers to this measure as Adjusted EBITDA. The Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and provides a means to evaluate the results of its core on-going operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be considered as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Company's calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies and, therefore, comparability may be limited.

All references to Same-Store Owned Hotels reflect the Company's owned, leased and consolidated joint venture hotels, excluding condo hotels, hotels sold to date and hotels undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed due to seasonality or hurricane damage). References to Company Operated Hotel metrics (e.g. REVPAR) reflect metrics for the Company's owned and managed hotels. References to System-Wide metrics (e.g. REVPAR) reflect metrics for the Company's owned, managed and franchised hotels. REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology.

All references to management and franchise revenues represent base and incentive fees, franchise fees, amortization of deferred gains resulting from the sales of hotels subject to long-term management contracts and termination fees offset by payments by Starwood under performance and other guarantees.

Starwood Hotels&Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 910 properties in more than 100 countries and 145,000 employees at its owned and managed properties. Starwood(R) Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis(R), The Luxury Collection(R), W(R), Westin(R), Le Meridien(R), Sheraton(R), Four Points(R) by Sheraton, aloft(SM), and element(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.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, business and financing conditions, foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers' fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use approvals for the development of vacation ownership resorts. There can also be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated. There can also be no assurance that agreements will be entered into for the hotels in the Company's pipeline and, if entered into, the timing of any agreement and the opening of the related hotel. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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Contact:

Starwood Hotels & Resorts Worldwide, Inc.
Jason Koval, 914-640-4429 
Website: http://www.starwood.com 
 

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Also See: Starwood Hotels & Resorts Names Ex-Wendy’s Executive Jeff Cava as Executive Vice President and Chief Human Resources Officer / May 2008
Starwood Maintains Consumer-Brand Focus, Names Frits van Paasschen, Former CEO of Coors Brewing Company, Chief Executive Officer/ September 2007
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