Starwood to Manage Rayavadee Resort On Thailand's Exotic Krabi Under the Luxury Collection Umbrella.

Business Editors

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Feb. 7, 2001

Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) and Premier Resort Krabi Ltd. have signed an agreement today in which the 100-villa Rayavadee on Thailand's scenic resort destination of Krabi, will be managed by Starwood.

The hotel will be part of Starwood's Luxury Collection. Situated on the tropical Phranang peninsula, the resort features three spectacular beaches, lush vegetation and sheer rock formations. Phranang Beach ranks among one of the world's most beautiful beaches with its fine sand and crystal clear water.

Rayavadee, a Luxury Collection resort, joins a unique portfolio of the world's most grand and renowned hotels including over 70 properties in 25 countries ranging from former palaces dating back to the 14th century to some of the world's most modern resorts. To sophisticated travelers worldwide, The Luxury Collection delivers the finest hotel experiences through their unparalleled attention to their guests' needs and preferences, their exceptional and distinctive properties, and seamless integration of the customs, culture and environment of each property's location. The Luxury Collection group includes such lauded hotels as the Five Star / Five Diamond Phoenician in Scottsdale, Arizona, Palace Hotel in San Francisco, The Lodge at Koele and Manele Bay Hotel in Hawaii, Hotel Danieli and Hotel Gritti Palace in Venice, Prince De Galles Hotel in Paris, Hotel Cala di Volpe in Costa Smeralda, Italy, Hotel President Wilson in Geneva and many other such distinguished hotels.

Rayavadee will be Starwood's second hotel in Krabi and the third Luxury Collection member in Thailand, in addition to the Sheraton Grande Laguna Phuket and Sheraton Grande Sukhumvit in Bangkok.

Its location by Cape Phranang, has been called a tropical paradise created by Mother Nature. The seascape offers a group of dramatically-shaped rock islands bathed in a turquoise sea. Surrounded by several hundred acres of marine national park, Rayavadee is the perfect luxury hideaway sought after by sophisticated travelers.

"We feel privileged to have been selected to operate such an important asset under The Luxury Collection banner," said Miguel Ko, President, Asia Pacific, Starwood Hotels & Resorts. "Rayavadee will be an outstanding addition to the already unmatched collection of luxury properties within the Starwood family."

Rayavadee prides itself in providing not only an environment that stimulates the senses, but the tranquility of a sanctuary to rejuvenate the body and mind. The resort showcases 100 deluxe pavilions and villas, all of them built discreetly among 20 acres of a mature coconut plantation, adjacent to three beaches. The spectacular swimming pool is located beside Railey Beach, known for its bold sunsets. Other facilities include dining outlets serving Thai and international cuisine, two meeting rooms, a spa and health club and other recreational facilities.

Rayavadee's pavilions and villas are extraordinary for their design and style. Notable pavilions and villas include the following:

- Rayavadee Villa: The Royal suite located at Phranang beach, has its own
private compound, swimming pool, sauna and Jacuzzi. It offers one master
bedroom with living room and separate dining room and kitchen. There is a
second bedroom unit for additional members of the group.

- Garden Pavilions: Glass walls in the living room create free flowing space to
the outside garden. The bedroom upstairs features a high dome-shaped ceiling
and a connecting romantic bathroom.

- Village Pavilions: Pavilion layout with additional outdoor umbrella-shaped
table and expanded sea view.

- Spa Pavilions: Pavilion layout with a garden Jacuzzi, sala and BBQ terrace.

- Deluxe Pavilions: Pavilion layout with private hydropool in a cozy fenced
garden and BBQ terrace.

- Two-Bedroom Pavilion: Pavilion with an attached ground level bedroom unit.

- Phranang Villa: Grand suite with two bedrooms, where guests can enjoy a
magnificent view of Railey cove from the outdoor hydropool on the extensive
terrace beside the beach.

During the construction of Rayavadee in 1992, developers took special care to preserve the environment. One notable factor was that no trees were cut during the building process. The resort has won several awards in recognition of its quality and environmental value, including the "Royal Gold Medal for Environmentally-Conscious Architectural Development" in 1994 from The Association of Siamese Architects, "Award of Excellence for Best Tourist Accommodation in Southern Thailand" in 1996 from the Tourism Authority of Thailand, and the "Excellence Award for Best Resort Hotel Project in South East Asia" in 1996 from the ASEAN Association for Planning and Housing.

The resort is currently undergoing an extensive million-dollar refurbishment to ensure the extraordinary quality and service that travelers all over the world have come to expect from The Luxury Collection. The lobby, restaurants, pool area and some of the villas have been renovated, with the rest of the villas to be completed by third quarter 2002.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 750 properties in more than 80 countries and 110,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchiser of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton and W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For further information, please visit www.starwood.com.

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