�We are delighted to have signed this agreement with Abandoibarra Tercermilenio S.L.� declared Roeland Vos, President of the European Division of Starwood Hotels & Resorts Worldwide, Inc.  �With the Sheraton Bilbao we are adding a popular and much-requested destination to the Starwood portfolio.  The developers are committed to build a high quality project and this will enable Starwood to surpass any expectation of our global customers, from the first day of operation of the hotel.  In addition, the new hotel will feature Sheraton�s new guestroom design and will no doubt become a favorite destination spot for Starwood Preferred Guest members to redeem their points for free stays.�

�The power of the Sheraton brand is known worldwide as well as the quality of its services and its global reach,� said Enrique Guzman Gandarias, President of Abandoibarra Tercermilenio S.L. �We are proud of the association with such a powerful brand and we are sure that�together with Starwood� we will give the Basque region and Bilbao the necessary visibility to make of the Sheraton Bilbao an outstanding success.�

The Sheraton Bilbao, will be located in the Abandoibarra area in the heart of the City of Bilbao adjacent to the Euskalduna Congress Center and within a five hundred meters of the world-famous Guggenheim Museum of Modern Art.  Total construction costs (excluding site acquisition) is expected to be over $25 million.

This exciting hotel project has been designed by the internationally renowned Mexican architect Ricardo Legorreta.  It will have 215 deluxe rooms and suites, a restaurant and bar, a ballroom and meeting rooms, underground parking, a swimming pool and health club.  The construction permit was issued on August 23, 2000 and construction is expected to commence in September.

Starwood Hotel & Resorts Worldwide, Inc. currently owns and/or operates six hotels in Spain including such famous hotels as The Westin Palace, Madrid; The Alfonso XIII, A Westin Hotel, Seville; and the Hotel Maria Cristina, A Westin Hotel, San Sebastian.  In Mallorca, the ArabellaSheraton Joint Venture manages the ArabellaSheraton Golf Hotel, Palma de Mallorca.

In addition, The Westin La Quinta Golf Resort, in Marbella (Malaga) is under construction with the opening scheduled for October this year.

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) is one of the leading hotel and leisure companies in the world with more than 725 properties in 80 countries and 120,000 employees at its owned and managed properties.