St. Regis Announces Ultra-Luxury Resort and Residences at St. Regis Resort, Bahia Beach, Puerto Rico; St. Regis Continues Dynamic Growth with Latest Development.

WHITE PLAINS, N.Y. -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced an agreement has been reached with BBP Partners, LLC of Puerto Rico, to build a new St. Regis Resort and Residences at Bahia Beach, Puerto Rico, an exclusive private development destined to become one of the Caribbean's finest resort and residential communities. The resort is slated for a 2008 opening.

"St. Regis is focused on building the world's most exclusive and luxurious properties in the finest locations around the world. When it opens, the resort will introduce an unrivaled dimension of luxury and bespoke hospitality to Puerto Rico," said Kerry Hatch, President of St. Regis. St. Regis Resort, Bahia Beach, Puerto Rico represents the 12th property currently under development for St. Regis. On a dynamic growth path, the legendary brand is projected to double in size by 2009, unveiling ultra-luxury hotels, resorts and residences across the globe.

Easily accessible from the New York metropolitan area and more than 20 U.S. gateway cities, the resort will allow guests to escape for a long weekend, or weeks on end. The majestic St. Regis Resort, Bahia Beach will be built directly along the ocean among towering coconut palms and lush tropical foliage and surrounded by a new oceanfront Robert Trent Jones, Jr. golf course. The resort will feature 150 luxuriously appointed suites, boasting spectacular views from private open terraces of the sparkling sea to the east or the mountainous El Yunque tropical rainforest to the south. In keeping with St. Regis' unparalleled standards of hospitality, the resort will feature St. Regis' signature butler service, a world-class Remede Spa and Fitness Center, casual and fine dining restaurants, oceanfront swimming pools, and concierge.

Bahia Beach is taking shape on 483 acres of pristine coconut palms and native maritime forest just 16 miles from San Juan International Airport. The community will boast a magnificent two-mile crescent of sandy beach, a beachfront golf course, world-class golf and beach clubhouses and a charming seaside village.

"Bahia Beach Resort & Golf Club will be a world-class resort community reflecting excellence in land planning, architecture and golf course design, all surrounded by breathtaking natural beauty," said Federico J. Sanchez-Ortiz, president of Interlink Group, the development managers of Bahia Beach. "Bahia Beach will undoubtedly be Puerto Rico's finest resort community, and the preferred destination in the Caribbean."

Scheduled to open in early 2007, the championship 18-hole Bahia Beach Golf Course designed Robert Trent Jones, Jr. will challenge golfers of all abilities, with thick canopies of native maritime forest, scenic lakes and ocean breezes. Three stunning finishing holes directly along the ocean will offer a memorable finale to each round of golf. The stately golf clubhouse will include areas for dining and entertaining, as well as a complete selection of golf equipment and sportswear. Troon Golf, the world's leading golf course management firm, will operate Bahia Beach Golf Course and clubhouse.

The community's two-mile stretch of sugar-fine sandy beach and gently lapping waves offer postcard-quality beauty and the tranquility of a private island.

Nature lovers will be delighted by the community's scenic nature trails, spectacular two-mile shoreline, 80 acres of lakes, tropical forests of sea grape, almond and flamboyan trees and environmental children's program. The natural splendor of nearby El Yunque National Rainforest can be explored along the many excellent hiking trails maintained by the U.S. Park Service.

BBP Partners, LLC are firmly committed to the principles of careful environmental stewardship and are taking major steps to ensure minimal impact on the flora and fauna of the site. Bahia Beach is a registered member of the Audubon International Silver Signature Program working toward designation as a Certified Silver Audubon International Signature Sanctuary.

Nestled among coconut palms and flowering flamboyan trees within walking distance of most homes will be Bahia Village, a welcoming town center of shops, cafes and restaurants where residents and guests can enjoy shopping, dining and entertainment while being caressed by the ocean breeze.

Among the lovely residences available for sale are 26 St. Regis Estate Homes exemplifying the luxury and beauty for which the company is renowned. These homes overlook both the golf course and the ocean. Designed in a tropical plantation architectural style, the homes will range from 6,000 to 10,000 square feet of total construction area and be available in six different models, all of which include large verandas, three-car garages and separate maid quarters. The first Estate Homes will be completed in 2007.

The charming Las Verandas Villas will include condominiums of approximately 1,500 to 3,500 square feet of total construction area and offer splendid views of El Yunque, golf, forest and lakes. The project will feature shady courtyards, private gardens and open green spaces. The first phase of Las Verandas Villas will be available in 2007.

All residences sold within Bahia Beach will include a social membership in the private club, providing members with special privileges and the highest level of service. Upgrades to full golf club memberships will also be available.

Bahia Beach is idyllically situated just east of Puerto Rico's capital city of San Juan. With the recent completion of the Route 66 expressway, the community is a relaxing 25-minute drive from San Juan's Luis Munoz Marin International Airport, which is served by a variety of major airlines worldwide.

Bahia Beach is being created by BBP Partners, LLC, whose award-winning principals are resort and residential developers Interlink Group, and office and commercial developers Munoz Holdings, Inc. Together they offer 45 years of experience in real estate development, project management and construction, and real estate brokerage of the highest caliber. For more information, please visit www.interlinkpr.com and www.munozbermudez.com. For more information about Bahia Beach Resort & Golf Club, please visit www.bahiabeachpuertorico.com.

St. Regis Hotels & Resorts includes the most celebrated properties in the world. Founded by John Jacob Astor with landmark St. Regis Hotel, New York over a century ago, the company will unveil highly anticipated St. Regis properties in Bora Bora, French Polynesia (2006) Fort Lauderdale (2006), Mexico City (2007), Punta Mita, Mexico (2007), Singapore (2007), Anguilla (2008), Atlanta (2008), Bahia Beach, Puerto Rico (2008) Costa Rica (2008) Deer Valley, UT (2008), Puerto Rico (2008) and Bal Harbour, FL (2009) that will further enhance the brand's legacy. Personalized service and amenities, enviable locations and luxuriously localized design are recognized worldwide as hallmarks of the St. Regis experience. For more information on St. Regis Hotels & Resorts, please visit www.stregis.com.

Starwood Hotels & Resorts Worldwide, Inc. 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(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.

(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.)