"Related's innovative development expertise in project conceptualization, mixed-use development, and sales and marketing of upscale residential projects in the South Florida market is a perfect complement to Starwood's ultra-luxury brand, loyal customer base and its existing untapped real estate holdings," said Steven Heyer, CEO, Starwood Hotels & Resorts. "We expect that this relationship will allow us to maximize the unrealized potential of our land assets while enhancing the strength of Starwood's presence in this affluent market."

"We see a huge potential in developing the St. Regis Resort & Residences, Bal Harbour as a preeminent address for first-class luxury living in Miami," said Jorge M. Perez, chairman, The Related Group of Florida. "The powerful combination of the St. Regis brand, the distinguished reputation of Lucien Lagrange Architects', and Related's integrated development approach will make the St. Regis Resort & Residences, Bal Harbour a spectacular new addition to the seaside Bal Harbour village."

Only a select few of the world's luxury hotels merit the St. Regis name, offering unprecedented excellence in standards of hospitality and elegance. The St. Regis Resort & Residences, Bal Harbour will feature an array of sumptuous amenities, including the brand's signature butler service, renowned concierge service, a world-class spa and a signature restaurant.

The Bal Harbour Shops, ranked "the number one shopping center in the U.S." by Women's Wear Daily and home to 100 flagship stores including Hermes, Gucci, Prada, Dolce and Gabbana, Chanel, Louis Vuitton, Saks Fifth Avenue and Neiman Marcus. The Bal Harbour Shops also offer their patrons services such as valet parking, personal shoppers, as well as an array of first-rate fine dining options.

The Sheraton Bal Harbour will plan promotional activities throughout the year prior to its anticipated closing in June 2006 to celebrate the hotel's 50 year fabled history. "We anticipate that thousands of guests who have stayed with us over these past 50 years will want to come back and stay with us one last time," said the Resort's Managing Director, Hans B. Altenhoff. "This will be an exciting year for our property; not only will we commemorate our 50th anniversary but we will also provide our guest the opportunity to own their dream home on the beach they have enjoyed all these years." The Sheraton Bal Harbour's 50 year anniversary celebration which kicks off this spring, will incorporate promotions with the luxury brand emporiums located at the Bal Harbour Shops via an exclusive "Passport to Bal Harbour" offering available only at www.sheraton.com.

The Related Group of Florida has 25 years of residential development and construction experience of condominiums and urban mixed-use properties, primarily in Florida. Some of Related's landmark projects in South Florida include the Icon, Murano, Murano Grande, Portofino Towers and Oceans I, II and III. The company works closely with its New York affiliate to acquire commercial and residential real estate throughout the US. Related's marketing partnership with RCRS (Related Cervera Realty Services) will offer years of selling expertise in the luxury South Florida real estate market.

Lucien Lagrange Architects has roots in both the innovative architectural legacy of Chicago and the classic design heritage of Mr. Lagrange's native France. The dichotomy results in a firm that is uniquely creative yet sensitive to a timeless aesthetic. In a relatively short time, Lagrange has made a significant mark on the Chicago skyline. Its projects - new buildings and comprehensive renovations - are prominent both in the Loop and on the Near North Side. One of the latest is the new 67-story Park Tower hotel and luxury condominium development on North Michigan Avenue.

Local architect, Sieger Suarez, has been selected as the architect of record and has long been unrivaled as South Florida's leading architectural firm specializing in luxury residential high-rise design. Taft Bradshaw, the original landscape designer for the Village of Bal Harbour and the Bal Harbour Shops, has been chosen as the landscape architect.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 750 properties in more than 80 countries and 110,000 employees at its owned and managed properties. 

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