Announcing the Westin Miami at Island Gardens; Westin to Be Cornerstone of Miami's Premier Waterfront Development.

WHITE PLAINS, N.Y. -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) and Flagstone Property Group today announced plans for a spectacular 350-room Westin hotel on Miami's Watson Island. Situated on Biscayne Bay with 360 degree views of the "Magic City" and its magnificent beaches, the hotel will be part of the $480-million mixed-use Island Gardens project. In addition to Westin's signature services and amenities, distinctive attributes of the project include a 50-slip "super yacht" harbor; sophisticated shops and restaurants; a world-class destination spa plus luxury fractional residences all adorned by expansive gardens and galleries. The Westin Miami at Island Gardens is due to open in early 2008.

"We are excited to bring one of the most recognizable names in hospitality, the upper-upscale Westin brand to the City of Miami by becoming a part of Island Gardens," said Sue Brush, Westin Hotels & Resorts senior vice president. "Miami is one of the top destinations in the U.S. and it is an honor to have our first Westin in Miami as the centerpiece of this project."

"By creating Island Gardens on Watson Island, Miami will become a true international gateway to the world and put the city in the highest league of international destinations. Island Gardens will be one of the finest waterfront landmark developments in the world, and the Westin name will create tremendous draw to the development," said Mehmet Bayraktar, Chairman and CEO of Flagstone Property Group. "In a city that entertains nearly ten million tourists and thousands of new residents each year, Island Gardens will prove to be an ideal destination for business and vacation travelers by offering an extraordinary destination with an integrated waterfront ambiance that transforms Miami's premier waterfront site into a destination for everyone."

The hotel is ideally located for leisure visitors who wish to be close to the beaches and enjoy water views. For business travelers, The Westin Miami at Island Gardens will offer the opportunity to stay at a waterfront location with resort amenities, large, modern meeting facilities in excess of 15,000 square feet and multiple dining venues all conveniently located in the immediate proximity of downtown and other points of commerce. Each of the guest rooms and suites of the hotel will enjoy unparalleled views of Miami, the beaches and Biscayne Bay and the signature services, design and products that guests have come to know from Westin including its signature Heavenly Bed(R) and Heavenly Bath(R). Additional guest services will include WestinWORKOUT(R) Powered by Reebok featuring state-of-the-art fitness equipment, Westin Workout guest rooms and Westin Kids Club(R).

Flagstone Property Group is the U.S. property development entity of Mehmet Bayraktar, a leading European mixed-use commercial property developer. Mr. Bayraktar formed Flagstone in early 2001 to establish a U.S. property development portfolio. Details on Flagstone, the management team and its projects are available at www.flagstonegroup.com.

Westin Hotels & Resorts, with 121 hotels and resorts in 31 countries and territories, is owned by Starwood Hotels & Resorts Worldwide, Inc. and was ranked "Highest in Guest Satisfaction Among Upscale Hotels Chains." in the J.D. Power and Associates' 2004 North America Hotel Guest Satisfaction Study(SM) and voted Best Domestic Hotel Chain by Global Traveler Magazine. Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 750 properties in more than 80 countries and 120,000 employees at its owned and managed properties. With internationally renowned brands, Starwood(R) corporation is a fully integrated owner, operator and franchisor of hotels and resorts including: St. Regis(R), The Luxury Collection(R), Sheraton(R), Westin(R), Four Points(R) by Sheraton, and W(R), Hotels and Resorts as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com

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