Last year, FelCor added the Sheraton brand to its portfolio with its purchase of five Sheraton-branded hotels with an aggregate 1,857 rooms/suites from ITT Sheraton Corporation. The recently flagged Westin Park Central was one of the original five Sheraton hotels acquired by FelCor. In fourth quarter 1997, FelCor acquired the Sheraton Burlington Hotel and Conference Center in Burlington, Vermont, and installed Sheraton as the manager of the 309-room hotel. Additionally, FelCor acquired the Sheraton Society Hill in Philadelphia, Pa., with Sheraton managing the hotel. Following the merger by Starwood with Sheraton ITT, in April 1998, FelCor purchased eight all-suite hotels with an aggregate 1,898 room/suites from Starwood. Starwood subsequently converted two hotels to Sheraton Suites(R) and continues to manage them.

"By combining ownership of the Westin and Sheraton hotels under common management, we are able to maximize operating efficiencies while improving the overall bottom line," said Thomas J. Corcoran, Jr., FelCor's President and CEO. "This joint venture further expands our alliance with Starwood and presents new and exciting opportunities for our company as we continue to grow FelCor as one of the nation's leading hotel REITs."

"We are very pleased to be working with a strong strategic partner in this joint venture and on new opportunities as they arise," said Barry S. Sternlicht, chairman and chief executive of Starwood. "This is a 'no cash' transaction that adds value for the shareholders of both companies," Mr. Sternlicht said.

Located adjacent to each other in North Dallas at the intersection of I-635 (LBJ Freeway) and Coit Road, both hotels converted brands in early October. The Westin was previously the Sheraton Park Central Dallas and the Sheraton, the Radisson(R) Park Central. After undergoing a $14 million renovation in 1997 and 1998, the Westin Park Central hotel features 545 upscale guest rooms; 28,000 square feet of meeting space; fitness and recreational facilities; valet parking, Laurels and Cafe in the Park restaurants and a full business center. 

The Sheraton Park Central Hotel Dallas also recently completed a $17.5 million renovation. With 438 guest rooms, the property features 15,000 square feet of meeting space, Delaney and Murphy Restaurant, the Martini Bar and fitness and recreational facilities. FelCor Lodging Trust is one of the nation's largest hotel real estate investment trusts (REIT). Since its initial public offering in 1994 with six hotels and 1,479 suites, FelCor's portfolio has grown to 195 hotels with nearly 50,000 rooms and suites. The company's hotel portfolio is primarily concentrated in the upscale, all-suite upscale and full-service segments. FelCor is the owner of the largest number of Embassy Suites(R), Doubletree Guest Suites(R), Crowne Plaza(R) and Holiday Inn(R)-branded hotels. Other leading hotel brands under which FelCor's hotels are operated include Doubletree(R), Sheraton Suites, Sheraton and Westin. FelCor has a current market capitalization of approximately $3.4 billion.

Starwood Hotels Resorts Worldwide, Inc. through its ITT Sheraton, Westin and Caesars subsidiaries, is one of the leading hotel and gaming operating companies in the world. Starwood Hotels Resorts is the largest real estate investment trust in the United States. Shares of Starwood Hotels Resorts Worldwide, Inc. are paired and trade together with shares of Starwood Hotels Resorts.

With the exception of historical information, the matters discussed in this news release include "forward looking statements" within the meaning of the federal securities laws and are qualified by cautionary statements contained herein and in FelCor's filings with the Securities and Exchange Commission.