St. Regis Announces Ultra-Luxe Resort in Costa Rica; St. Regis Continues Dynamic Growth Path With Third New Property Announced In Latin America

Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT)today announced an agreement has been reached with Genesis, a CostaRican-based development firm, to build a new St. Regis Resort andResidences in the Central Pacific region of Costa Rica. Scheduled toopen in 2008, the resort will be developed with the participation ofLionstone Development, a Miami-based luxury hotelier and developer andwill be managed by Starwood's ultra-luxe St. Regis brand. When itopens, St. Regis Resort, Costa Rica will introduce an unrivaleddimension of luxury and bespoke service to Costa Rica.

"As we grow the St. Regis brand we continue to seek only theworld's most exclusive addresses, and there are few resortdestinations in the world that embody the raw natural beauty of CostaRica," said Kerry Hatch, President of St. Regis.

St. Regis Resort, Costa Rica designed by Zurcher Architects, aleading Costa Rican architectural firm, will feature a total of 133luxurious accommodations. Each guestroom will include oversizedoutdoor terraces complete with outdoor showers, netted day beds andrelaxation coves. For the ultimate in privacy and pampering, theresort will boast four ultra-luxe spa suites outfitted with plushprivate treatment areas, plunge pools and the finest amenities. ThePresidential Suite, the crowing jewel of the resort, will be perchedon a dramatic cliff, complete with three spacious bedrooms, privatepool and breathtaking views of the tropical forest and the PacificOcean. Resort amenities will include three pool areas set within thetropical landscape, a specialty restaurant, themed three-mealrestaurant, lobby bar, pool bar, beach club and an 11,000 square footRemede Spa and Fitness Center featuring outdoor meditation areas andnine deluxe treatment rooms. The resort will also offer 3,750 squarefeet of meeting and function space.

St. Regis Residences, Costa Rica will include a total of 49 one,two and three-bedroom condominium-hotel residences, 42 deluxe wholeownership private villas and nine magnificent estate homes alldelivered with private plunge pools. Indigenous materials will beutilized to create private residential dwellings that are destined tobe the most luxurious in the region. Residence owners will enjoy fullaccess to the resort's services and amenities including its St. RegisButler Service, the exclusive Remede Spa and fine dining restaurants.The resort's magnificent guestrooms, suites and residences will bedesigned by Cheryl Rowley Associates, the acclaimed BeverlyHills-based design firm.

"We are thrilled to announce our third new St. Regis property inLatin America, following the recent announcements of the St. Regis inMexico City and the St. Regis in Punta Mita. We look forward towelcoming the world's most discriminating travelers and residenceowners," stated Osvaldo Librizzi, President of Starwood Hotels &Resorts in Latin America. "St. Regis Hotel, Costa Rica will introducea new dimension of elegance, style, luxury, hospitality and graciousliving to the country."

St. Regis Resort, Costa Rica is ideally situated in Playa Coyol, alush tropical wonderland home to abundant flora and fauna, dramaticviews to the Pacific Ocean and stunning private beaches. This projectwill be the only internationally branded hotel surrounded by aNational Wildlife Reserve, the Ara Macao Wildlife Reserve.

Located 65 miles from the San Jose's International Airport, themagnificent resort is readily accessible from the country's mainairport and situated on a 250-acre site on a secluded bay within closeproximity to the Los Suenos area which features an 18-hole golf courseand a marina.

"We are excited to work with the prestigious St. Regis brand, aswell as one of the top developers in Costa Rica, to create one of themost exclusive real estate and resort offerings in Latin America,"said Diego Lowenstein, CEO of Lionstone Development.

Alberto Kader, CEO of Genesis added, "Managed by one of the mostinternationally renowned names in the hospitality industry and locatedwithin a breathtaking Wildlife Preserve, St. Regis Resort andResidences, Costa Rica will offer the ultimate in privacy andpampering in a tropical paradise."

Beloved for its signature St. Regis Butler Service, exquisitedesign and enviable locations, St. Regis is among the world's mostrevered luxury hotel brands. The brand is growing rapidly, with adevelopment pipeline of over 20 properties opening within the nextfive years. St. Regis has also made significant strides into theluxury residential real estate market with exclusive St. RegisResidences in the world's most desirable locales including Anguilla,New York, Bali, Mexico City, Singapore and beyond, all of which areunder development and commanding premium prices per square foot.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leadinghotel and leisure companies in the world with approximately 850properties in more than 95 countries and 145,000 employees at itsowned and managed properties. Starwood(R) Hotels is a fully integratedowner, operator and franchisor of hotels and resorts with thefollowing internationally renowned brands: St. Regis(R), The LuxuryCollection(R), Sheraton(R), Westin(R), Four Points(R) by Sheraton,W(R), Le Meridien(R) and the recently announced Aloft(SM). StarwoodHotels also owns Starwood Vacation Ownership, Inc., one of the premierdevelopers and operators of high quality vacation interval ownershipresorts. For more information, please visit www.starwoodhotels.com.

St. Regis Hotels & Resorts includes the most celebrated propertiesin the world. Founded by John Jacob Astor with landmark St. RegisHotel, New York over a century ago, the company will unveil highlyanticipated 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), Deer Valley, UT(2008), Puerto Rico (2008) and Bal Harbour, FL (2009) that willfurther enhance the brand's legacy. Personalized service andamenities, enviable locations and luxuriously localized design arerecognized worldwide as hallmarks of the St. Regis experience. Formore information on St. Regis Hotels & Resorts, please visitwww.stregis.com.

GENESIS is one of the leading real estate development firms inCosta Rica with a 15-year track record of owning, developing andselling residential and office properties. Forum Office Park andForum2 represent more than 1.3 million square feet of office space.For more information, please visit www.genesiscostarica.com.

Lionstone Development has a 30-year track record of owning,developing, leasing and managing hospitality, gaming and residentialproperties. Lionstone's current portfolio includes several luxuryresort properties from world-renowned brands in Miami and theCaribbean and the company is developing more than 2.5 million squarefeet of high-end residential and mixed-use space throughout SouthFlorida. For more information, visit www.lionstone.net.

** Please contact Starwood's new, toll-free media hotline at (866)4-STAR-PR (866-478-2777) for photography or additional information.**