W Hotels Heads for the Heart of Istanbul, Where Fashion, Food and Art Meet Storied History.

NEW YORK -- W Hotels Worldwide, the fastest growing luxury hotel brand in the world, announced today plans for a new hotel in Istanbul, Turkey. The W Istanbul will embody a multicultural, multireligious city, situated at the point where Europe meets Asia, where centuries meet contemporary arts and where tradition meets trends.

Starwood Hotels and Resorts Worldwide, Inc. (NYSE: HOT), the parent company to W Hotels, entered into a management agreement with Akaretler Otel Isletmeciligive Turizm A.S., a company controlled by Mr. Serdar Bilgili, a prominent Turkish businessman, who will develop the property. With its east-west roots, the W Istanbul will complement the other four W hotels planned for this region, in Barcelona, Athens, Dubai and Doha. Starwood will manage the hotel.

Scheduled to open in late 2007, the W Istanbul will serve as the centerpiece of the redevelopment of the landmark Akaretler Row Houses in Besiktas. The historical Row was constructed by Sultan Adbulaziz in the l870's to house workers of the Dolmabahce Palace, a symbol of the magnificence and decadence of the 19th-century Ottoman Empire.

Architect/designer Geomim, one of the most creative firms in Turkey, has been chosen to combine this authentic Ottoman-style design with the unique signature design elements for which the W brand is celebrated, including the Living Room experience, where guests and locals can socialize, relax and unwind or recharge in a communal setting. Located in the Besiktas district of Istanbul, known for its destination restaurants, bars and cafes, the W Istanbul will be in close proximity to the Bosphorus Strait and Nisantasi, the city's most fashionable shopping district. The hotel will also be a stone's throw away from the Museum of Painting and Sculpture and a short drive to the Old City, the Blue Mosque and the Istanbul Modern art museum.

"Istanbul's dynamic mix of history and modernity make it a fantastic backdrop for W," said Ross Klein, President of W Hotels. "The surfacing of world-class restaurants, art galleries and luxury retailers in the city contribute to Istanbul's emergence as a favorite international business and leisure destination."

"Istanbul is one of the most exciting cities in the region for all of Starwood's leading lifestyle brands, and we are thrilled to be reentering the market with W which is a perfect match for the energy and style of the city," said Roeland Vos, President of Starwood Hotels and Resorts, Europe, Africa & Middle East.

The W Istanbul will have approximately 130 rooms, including suites and duplex suites, many with their own private gardens. Guests will indulge in the W signature beds with feather-top mattresses, 350 thread-count Egyptian cotton sheets and goose down comforters. They'll also be treated to Whatever/Whenever service, the hotel's 24-hour concierge that can provide whatever guests want (from a pair of running shoes to private jet service), whenever they want it. The third floor common areas will offer views of the Bosphorus, the renowned waterway straight between the Black Sea and the Sea of Marmara.

Mr. Serdar Bilgili is a prominent Turkish businessman and notable figure in Istanbul's social and sporting communities. He is active in textiles, construction and hospitality and owns the highly exclusive and successful boutique hotel, Ajia, on the banks of the Bosphorus. Mr. Bilgili is perhaps best known for his role as President of the Besiktas football club from 2000 to 2004.

W Hotels is a global lifestyle brand with 20 properties in the most vibrant cities around the world. Inspiring and indulging its guests with thoughtful, refreshing and stylish experiences, signature restaurants, bars and destination spas, W has become the fastest growing luxury hotel brand in the world. Each hotel offers a unique mix of innovative design, comfort and cultural influences from fashion to music to art and everything in between. Recent openings include W's first property in Asia, W Seoul - Walkerhill and its first property in Canada, W Montreal. W Residences, offering the W lifestyle at home, have been announced for Las Vegas, Hollywood, South Beach, Fort Lauderdale, Phoenix, Scottsdale, Philadelphia and Hoboken. W's first residential property, W Dallas Victory, opened in June of 2006. Internationally, W has announced plans for hotels in the Maldives, Barcelona, Hong Kong, Shanghai, Santiago, Athens, Doha and Dubai. For more information, visit www.whotels.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 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.)