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STARWOOD HOTELS ANNOUNCES FIRST WHOLLY-OWNED ALOFT AND ELEMENT DEVELOPMENT IN LEXINGTON, MASSACHUSETTS - August 21, 2007
Starwood’s Two New Lifestyle Brands Will Greet Guests In 2008 In Sophisticated, Historic Boston Suburb

White Plains, N.Y. – August 21, 2007 – Starwood Hotels & Resorts, Worldwide, Inc. (NYSE:HOT) today announced the development of its first wholly-owned ALOFT and ELEMENT hotel project in Lexington, Massachusetts. ALOFT and ELEMENT Lexington will breathe new life into the select service and extended stay markets in this vital and energetic suburban community. Both hotels are scheduled to open in late Spring of 2008.

Just twelve miles outside of Boston, Lexington offers a charming combination of historical sites, farm stands and greenhouses, as well as convenient access to Boston’s thriving business community and leisure attractions. Sharing the same parcel of land, the two hotels will be located at 727 Marrett Road at Route 2A.

ALOFT Lexington
As a Vision of W Hotels, ALOFT Lexington will shake up the lodging industry with urban-influenced design, accessible technology, style and a social atmosphere. ALOFT offers a total sensory experience, with guest lofts featuring loft-like nine-foot ceilings and oversized windows to create a bright, airy environment. The centerpiece of the loft room is the ultra-comfortable signature bed, and large stylish bathrooms complement the guest experience with oversized walk-in showers and amenities created by Bliss® spa.Each guest loft will also be a combination high-tech office and entertainment center, featuring wireless internet access and plug & play, a one-stop connectivity solution for multiple electronic gadgetry such as PDAs, cell phones, mp3 players and laptops - all linked to a large flat panel HDTV ready television for optimal sound and viewing.

“ALOFT is excited to march into the home of the Minute Man with ALOFT Lexington,” said Ross Klein, President of Starwood’s Luxury Brands Group and ALOFT Hotels.  “With ALOFT, travelers can finally visit Lexington in style and we are excited to bring a fun way to play and stay to Massachusetts.”

Designed in conjunction with world-renowned David Rockwell and The Rockwell Group, ALOFT stays true to the W brand’s heritage, offering atmosphericpublicspaces designed to draw guests from their rooms to socialize and make friends. Guests can read the paper, work on their laptops via hotel-wide wireless internet access, play a game of pool or grab a drink with friends at the re:mix communal lobby area and bar w xyz. The re:charge fitness center and splash, the indoor or outdoor pool, give travelers options to de-stress and re-energize; while re:fuel by ALOFT, a one-stop food and beverage area, offers sweet, savory and healthy food, snacks and beverages to grab & go, 24-hours a day. 

ALOFT Lexington is the 45th confirmed ALOFT development and will feature 136 guestrooms and approximately 600 square feet of meeting space. 

Travelers To Rise, Shine And Thrive At ELEMENT Lexington
Inspired by Westin Hotels & Resorts, ELEMENT Lexington will offer a new extended stay experience that combines smart design, nature-inspired, and eco-friendly touches.  Modern amenities range from WiFi to an international pantry stocked with everything from Korean kimchi soup to dolmades, a Greek favorite.

The ELEMENT brand’s unique smart design philosophy is evident from the moment guests arrive. After passing through a signature portal that provides a literal bridge to the ELEMENT interior haven, guests will be greeted with streams of natural light from a multi-storied window wall. The vitality of the lobby will be matched by the energy of the hotel’s outdoor fire pit and barbecue, where a regular nightly gathering will give guests an opportunity to interact, while sipping a glass of wine or draft microbrew beer.

“This hotel’s intelligent design creates an ideal setting for relaxing, working or socializing while away from home for longer periods of time,” said Nicholas Lakas, director, ELEMENT Hotels.  “We want to provide an environment for our guests that will enable them to thrive and enjoy everything that Lexington has to offer”.

The smart design and clever use of space in the hotel’s guest rooms will be aimed at encouraging guest productivity while facilitating relaxation.  ELEMENT Lexington’s open, modular flow will blend together each part of the guestroom to create a residential feel.  Guests will be able to customize their rooms to match their habits through multi-purpose, modular furniture, swiveling flat-screen televisions, large desks with open shelving and custom-designed closets. In addition, each room offers a complete kitchen that features modern, energy-star rated appliances and all the tools and utensils to prepare a gourmet meal.  Guests will also rest soundly in the renowned Westin Heavenly Bed®, and recharge each morning in a sleek, contemporary bathrooms with oversized spa showers. Upon leaving Lexington, guests will know what it truly means to wake up and thrive. 

ELEMENT Lexington will offer 123 guestrooms and approximately 800 square feet of meeting space.

About Starwood Hotels & Resorts Worldwide, Inc.
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® Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points® by Sheraton, W®, Le Méridien® and the recently announced AloftSM and ElementSM Hotels. 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.)

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