Starwood Hotels & Resorts Continues Expansion in Croatia with the Signing of New Sheraton Dubrovnik Riviera Hotel

Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it has signed an agreement with Hoteli Dubrovacka Rivijera d.d. to open a new Sheraton hotel in Dubrovnik, one of the most popular tourist destinations in the Mediterranean. Scheduled to open in the second quarter of 2015, Sheraton Dubrovnik Riviera Hotel will mark Starwood's entry into Dubrovnik and the company's fourth hotel inCroatia.

"We are pleased to expand into our third partnership with HUP Zagreb d.d. in Croatia and look forward to introducing the Sheraton brand into the growing European resort market of Dubrovnik," said Michael Wale, President, Starwood Hotels & Resorts, Europe, Africa and Middle East. "Our expanding footprint in Croatia reflects the country's continuing prominence as a travel destination, and the growing demand for strong, globally recognized hotel brands along the Adriatic Coast."

Dubrovnik is a UNESCO heritage-listed city set on the Adriatic Sea at the southern end of Croatia. Sheraton Dubrovnik Riviera Hotel will be located along what is commonly referred to as the Dubrovnik Riviera, a 20 kilometre stretch of coastline that runs from the old city of Dubrovnik in the north to Cavtat in the south. The Dubrovnik Riviera is the most popular destination along the entire Croatian Adriatic coast, attracting nearly 800,000 tourists per year.

Andelko Leko, CEO of HUP Zagreb commented: "Our longstanding partnership with Starwood, introducing the Westin and Sheraton brands into Zagreb, and now the Sheraton brand into Dubrovnik, has significantly influenced the development of the hotel industry across the country. The recognition of Starwood's brands alongside HUP Zagreb's professional team has contributed to making our hotels the center of economic, political, and sporting events in Croatia. We are confident Sheraton Dubrovnik Riviera will be no exception."

The 250-room hotel will feature signature Sheraton experiences, including the all-white Sheraton Sweet Sleeper^TM beds, the Link@SheratonSM and the Sheraton Fitness by Core^® Performance. Guests will be able to enjoy relaxing treatments at the Sheraton Shine Spa, an indoor and outdoor swimming pool, as well as a tennis court. Sheraton Dubrovnik Riviera Hotel will include one of the largest conference facilities along the Croatian Adriatic Coast with approximately 1,000 square metres of meeting space.

"Sheraton continues to be a first-mover into many new markets around the world, paving the way for future growth and the introduction of our other eight lifestyle brands," added Bart Carnahan, Senior Vice President, Acquisitions & Development, Starwood Hotels & Resorts, Europe, Africa and Middle East. "This signing enhances our presence in Croatia as we continue to look for opportunities to expand in this important, rapidly growing market."

Starwood Hotels & Resorts currently operates three hotels in Croatia: Le Meridien Lav in Split, Sheraton Zagreb Hotel and The Westin Zagreb.

HUP-ZAGREB d.d. has, in its tradition of over 65 years, become a leading company in the tourism and hotel industry, both in Zagreb and Croatia. HUP-ZAGREB d.d. is continuously making innovations and keeping up with global standards in hospitality services. Excellence is a fundamental criterion, which is one of the reasons why the hotels are the center of political, economic and sporting events as well as a second home to many world political leaders, business professionals from various sectors and international stars of modern culture. HUP-ZAGREB d.d. with its present investment program has assumed a leading national investor position in tourism. In early 2013, projects which will invest more than EUR 80 million within two years were introduced in the southern Croatian region – this will create a completely new tourist brand in accordance to the recent standards of the international tourist industry.