W Hotels Debuts in the Fashion and Design Capital of the World with W Milan

The World's Fastest Growing Luxury Brand Announces Plans for its First Italian Property

WHITE PLAINS, N.Y. -- Starwood Hotels & Resorts, Worldwide Inc. (NYSE:HOT) today announced plans with Statuto Group to open a W Hotel in Milan, in a deal representing another significant milestone in W Hotels' aggressive global expansion. Scheduled to convert in December 2008, W Milan will be the first W Hotel in Italy, bringing the brand's signature style and sophistication to the world's fashion and design capital.

W Milan will be located in the heart of the Brera district, a former artists' enclave and now one of Milan's most energetic cultural centers. Guests will enjoy close proximity to Milan's famed restaurants, art galleries, retail shops and cafes crowding the narrow pedestrian streets surrounding the hotel, which will occupy a converted mid-20th century building, notable for its iconic character.

"As one of the global capitals of design and fashion, Milan is a perfect fit for the W brand," said Ross Klein, President of Starwood's Luxury Brands Group. "W Milan will mark a major step in our brand's global expansion, pairing two style icons in the heart of one of the world's most beloved destinations."

W Milan is a highly anticipated addition to the brand's seven recently announced hotels in Europe, Africa and the Middle East in key destinations, including Barcelona, Athens, St. Petersburg, Istanbul, Dubai and Doha.

"We are thrilled to introduce the W brand to Italy, providing our cosmopolitan guests with an insider escape in the cultural center of one of Europe's most exciting cities," said Roeland Vos, President of Starwood Hotels and Resorts, Europe, Africa & Middle East. "Milan's blend of commerce, cultural treasures, and world-class shopping make it a perfect choice for W's continued worldwide expansion."

The hotel's 76 rooms will include eight W suites and one Extreme Wow Suite. W Milan will also feature a signature restaurant, a destination rooftop bar, the W Living Room, and a spa and fitness center. A highlight of the hotel's guest rooms will be W signature beds, featuring 350 thread-count Egyptian cotton sheets. Guests can also indulge themselves by using the Whatever/Whenever service, the hotel's 24-hour concierge that can provide whatever guests want -- from a pair of running shoes to private jet service -- whenever they want it.

"We are very proud to provide the city of Milan with a unique opportunity to combine business, fashion, elegance and pleasure," said Giuseppe Statuto, Chairman of Statuto Group. "Moreover, the new W project will solidify Statuto Group's reputation as a leading developer of luxury hotels."

In a city that weaves together European charm with modern influences, Milan is Italy's transportation center, boasting a high-speed rail link and a superior subway system. The city's two international airports are both less than an hour from W Milan.

About W Hotels
W Hotels is a global lifestyle brand with 21 properties in the most vibrant cities around the world. Inspiring and indulging its guests with thoughtful, refreshing and stylish experiences, signature restaurants, bars and destination spas, W has become the fastest growing luxury hotel brand in the world. Each hotel offers a unique mix of innovative design, comfort and cultural influences from fashion to music to art and everything in between. W's first Retreat & Spa, W Maldives, opened in September of 2006 following a highly successful opening of the brand's first residential property, W Dallas Victory, in June of 2006. W Residences, offering the W lifestyle at home, have been announced for Austin, Las Vegas, Hollywood, South Beach, Fort Lauderdale, Phoenix, Scottsdale, Philadelphia, Downtown Atlanta, and Hoboken. Internationally, W has announced plans for hotels in Vieques, Barcelona, Hong Kong, Shanghai, Santiago, Athens, Istanbul, Doha, Dubai-Festival City, Dubai-The Palm, and Koh Samui. For more information, visit .

About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc.(R) is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 countries and 145,000 employees at its owned and managed properties. Starwood(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), Sheraton(R), Westin(R), Four Points(R) by Sheraton, W(R), Le Meridien and the recently announced Aloft(SM) and Element(SM) Hotels. 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 .

About Statuto Group
Mr. Giuseppe Statuto, owner of Statuto Group, is one of the most prominent private real estate investors in Italy, with the objective of an international expansion, presently just started in London. The overall business strategy is to consolidate the investments in prime locations of the most important destinations and markets worldwide. Mr. Statuto's main activities are related to residential real estate development, private management, and the luxury hotels segment. Statuto Group's hotel portfolio includes some of the most prestigious worldwide landmarks, such as the Hotel Danieli in Venice, a Luxury Collection Hotel, the Four Seasons Hotel Milan and the Crowne Plaza London - The City. The Group has important relationships with prime international luxury hotel companies (Starwood, Four Seasons, InterContinental), in order to guarantee each property has the highest quality, reflects the best performance, and increases in asset value.

(Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated at the time the forward-looking statements are made. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results and events 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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Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 1,200 properties in some 100 countries and over 180,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St.