Le Meridien Hotel to Anchor New Arizona Development; Established European Hotel Brand Joins a Cadre of Innovative, International Corporate Tenants Including KPMG, Smith Barney, T.Y. Lin, and Regus/HQ.

WHITE PLAINS, N.Y. -- Strong Growth Pattern for Le Meridien Brand Since Acquired By Starwood

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) and SunCor Development Company announced today that a Le Meridien hotel is the latest addition to the stylish, mixed-use, master-planned project, Hayden Ferry Lakeside, in Tempe, Arizona. Le Meridien at Tempe Town Lake is the brand's first new build property since it was acquired by Starwood in November of 2005, and follows the May 2006 opening of Le Meridien San Francisco. The brand is on an aggressive global growth path, particularly in the U.S., Asia-Pacific and Latin America.

Le Meridien is recognized by global travelers for its style, originality and passion for art, architecture, food, fashion, music and film. The 183-room, 14-story contemporary styled hotel with a European flair will offer to worldly travelers a culturally-rich and sophisticated accommodation in Tempe, a highly popular downtown district in the greater Phoenix area. The hotel is bordered by the 220-acre Tempe Town Lake and picturesque Hayden's Butte, and is located ten minutes from Sky Harbor International Airport.

In addition to the hotel, 44 residential units will be built atop the property and will enjoy the internationally acclaimed services and amenities afforded to Le Meridien guests, along with magnificent lake views. There also are four other SunCor condominium buildings in the Hayden Ferry Lakeside development, all of which may have access to some of the hotel amenities.

Le Meridien joins an innovative, forward-looking cadre of corporate tenants including KPMG, Smith Barney, T. Y. Lin, Regus/HQ and MedAire as well as SunCor. Tenants in the vicinity include U.S. Airways, and Monster International. When complete the Hayden Ferry Lakeside master-planned development will include the hotel, approximately 350 condominiums, three high-rise office buildings, and retail components including a spa/fitness club and myriad high-end restaurants.

"As we aggressively expand our footprint around the globe, particularly here in the United States, we search for communities that, like Le Meridien, embrace culture and creativity," said Eva Ziegler, Senior Vice President, Le Meridien Brand. "With the energy of Arizona State University, its sophisticated, international corporate presence, and thriving downtown, Tempe is a very desirable location. This project's unique design concept perfectly complements the preferences and desires of our guests."

The Hayden Ferry Lakeside project is part of the master-planned Tempe Town Lake, an extensive landscape comprising of water and park space that frames Tempe Beach Park, originally built in 1931. The park connects to five miles of picturesque bike and jogging paths, and boating concessions. The area plays host to open-air concerts and holiday celebrations throughout the year. The Tempe Town Lake is Arizona's second largest tourist attraction.

A joint venture among Valhalla Development Corporation, Sierra Hospitality, and Adobe Development Partners who together comprise Tempe Lake Development Partners, the new hotel will be operated by APMC, an approved Starwood Operator. The international hotel designer Bent Severin Design (Westin Tokyo, Sheraton Bahrain and Sheraton Warsaw) and highly acclaimed hotel architects Callison Group of Seattle have been selected with an urban design in mind.

"Le Meridien's European sensibility, style and sophistication are all highly desirable, even in a market that already boasts some of the world's finest accommodations," said SunCor President & CEO Steve Betts. "With the power of Starwood, the brand brings with it operational excellence, cutting edge technology, and an existing global customer base."

With 13 hotels in Arizona and 10 hotels in the greater-Phoenix area, plus 3 more under development, Starwood is a vital player in the area's tourism industry. Its famed properties in the region include The Phoenician, the Westin Kierland Resort & Spa, the Sheraton Wild Horse Pass Resort & Spa, and the soon-to-open W Scottsdale and W Phoenix.

Originating in Paris, Le Meridien epitomizes European service culture, with a commitment to offering guests a truly authentic experience, respecting local culture and appealing to the curious and progressive guest. With more than 120 properties in 52 different countries, almost 70 percent of the Le Meridien properties are located in Europe, Asia-Pacific, Africa and the Middle East with an aggressive growth plan in North American and Asia-Pacific currently underway.

About Valhalla Development Corporation

Led by President and CEO Tod Decker, The Valhalla Development Group (VDG) was founded with the philosophy of building long-term value by designing, developing and managing exclusive commercial real estate projects. VDG's primary focus is the creation and development of mixed-use "live, work, play" urban village environments in the western United States.

About Sierra Hospitality

Sierra Hospitality and our sister companies Sierra Financial and Sierra Homes has been an active developers in the Valley for the past 15 years. Completed projects include Sierra Hills in Scottsdale. Sierra Hospitality is focused on the development of mixed use hotel/resort and residential projects with an emphasis on quality and service. Sierra Hospitality is an investor, in the Hotel La Jolla, a prestigious hotel in La Jolla California managed by our strategic alliance partner American Property Management.

About Adobe Development Partners

Adobe Real Estate Development LLC, founded in 2003 by Paul Winslow and Olivier Severin, has grown from development projects based in Arizona to California, Trinidad & Tobago and other countries worldwide. ARED prides itself on developing projects that suit the economy's current and future needs and demands. With its strong background in design excellence from medical, hospitality, residential, commercial, institutional; and industrial; ARED places forefront designs and ideas to use, in order to secure its developments' success in the marketplace. "We develop today for tomorrow's future".

About Starwood Hotels & Resorts

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 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(R) and the recently announced Aloft(SM). 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 www.starwoodhotels.com.

About SunCor

SunCor is one of the Southwest's premier developers, providing exceptional, meticulously planned environments. It is known for developing integrated communities that protect the beauty of nature and offer superior places to live, work, and play. SunCor is a wholly owned subsidiary of Pinnacle West Capital Corporation, a publicly traded company (NYSE: PNW). Pinnacle West Capital Corporation is also the holding company for Arizona Public Service, Arizona's largest electric utility. For more information, please visit www.suncoraz.com.

(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.)