WHITE PLAINS, NY – December 18, 2008 – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced a long term agreement with Europejski Fundusz Hipoteczny S.A. (EFH), to manage a new Sheraton Hotel - Sheraton Mazury Lakes Resort - in the Polish region of Mazury. Scheduled to open in 2011 the hotel will be located near Taltowisko/Talty Lake in Poland’s nature sanctuary, home to sailing and canoeing aficionados. The property is also situated nearby the historic town of Mikolajki approximately 225 kilometers north-east of the Polish capital Warsaw.

“We are thrilled to partner with Europejski Fundusz Hipoteczny and to announce this fantastic opportunity that will continue strengthening Sheraton’s presence in Poland, one of the fastest growing regions in Eastern Europe,” said Roeland Vos, President of Starwood Hotels & Resorts, Europe, Africa and the Middle East. “Ideally enveloped in this picturesque environment, the Sheraton Mazury Lakes Resort will offer unparalleled experiences complemented by the well-known Sheraton signature products, to both leisure and conference travelers alike.”

Sheraton Mazury Lakes Resort will boast 274 guest rooms consisting of 257 bedrooms and 17 luxurious suites all equipped with the Sheraton signature room and bathroom amenities, including the renowned Sheraton Sweet Sleeper™ Bed.

The lobby of the hotel will serve as a community hub for all guests. Featuring the Link@Sheraton Experienced with Microsoft^SM, it will offer a place where business travelers and families can connect to their loved ones, browse on the internet or simply socialize.

“We believe that the iconic Sheraton brand is the perfect fit for the Mazury region and will help highlight this area which is growing unprecedentedly. The spectacular landscapes make it one of the most frequented regions of the country and we are delighted to host our local and international guests in this part of the world,” said Mirosław Wierzbowski, President of Europejski Fundusz Hipoteczny S.A

Sheraton Mazury Lakes Resort will offer two restaurants, a coffee shop, a wine cellar, a bar and cigar lounge and an outdoor pool restaurant.  The hotel will dedicate a total of 2,200 sq. meters to conference and meeting facilities and will vaunt an extensive gym and spa including an indoor pool deck, offering beauty and relaxation treatments to both men and women.

The hotel will be located in the Mazury region, also known as ‘the land of a thousand lakes’which encompasses 45 lakes and lush forestland. Sited in the middle of the most popular East-European navigable sailing trail, which is 145 kilometers long, the region has positioned itself as a hub for sailing and water sports. There are also plans for this idyllic piece of land to be placed under environmental protection.

The Sheraton Mazury Lakes Resort will be the 5th Sheraton Hotel in Poland - along with the Sheraton Warsaw Hotel, Sheraton Krakow Hotel, Sheraton Poznan Hotel and Sheraton Sopot Hotel, Conference Center & Spa - and will mark the 7th Starwood Hotel in the country.

About Starwood Hotels & Resorts
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 900 properties in more than 100 countries and 155,000 employees at its owned and managed properties. Starwood Hotels is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, and the recently launched Aloft^SM, and Element^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 Europejski Fundusz Hipoteczny S.A
Europejski Fundusz Hipoteczny S.A. (EFH) has been operating since 14 years. It focuses on financing and managing investment activities in the real estate market. The company specializes in 3-5 star hotel projects with meeting rooms and spa. Europejski Fundusz Hipoteczny was listed on Warsaw Stock Exchange on 27.12.2007. In 2007 the total revenues was amounted to 53.4 million PLN.