Starwood Hotels & Resorts Expands Presence in Germany’s Capital with Sheraton Berlin Grand Hotel Esplanade

Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced that it is expanding its footprint in Germany with the signing of the Sheraton Berlin Grand Hotel Esplanade. The franchise agreement with Esplanade Operation GmbH, a subsidiary of Host Hotels & Resorts’ European joint venture, marks the conversion of the existing Grand Hotel Esplanade to a Sheraton hotel. The hotel continues to be operated by EVENT Hotel Group, which also holds a minority interest in the property.

"We look forward to partnering with Esplanade Operation GmbH on this major conversion as we launch our iconic Sheraton brand in a vibrant metropolis such as Berlin. Furthermore, we are delighted to strengthen our collaboration with EVENT Hotel Group which also operates our other hotel in the city, The Westin Grand, Berlin,” said Michael Wale, President, Starwood Hotels & Resorts, Europe, Africa and Middle East. "Becoming the 11^th Sheraton in Germany, we are confident that Sheraton Berlin Grand Hotel Esplanade will reinforce the brand’s position as an unparalleled global leader in the hospitality sector.”

"We are excited to extend our partnership with Starwood in Europe by converting this historic hotel to a Sheraton property under a franchise agreement,” said James F. Risoleo, Executive Vice President and Managing Director, Europe of Host Hotels & Resorts. "We believe in the power of the Sheraton brand as well as in Starwood’s global expertise and systems. Together with Starwood and EVENT Hotel Group, this winning combination will create substantial value for this hotel.”

The 394-room Sheraton Berlin Grand Hotel Esplanade has an all-day dining restaurant and a German-specialty restaurant, as well as Harry’s New York Bar and a lobby bar. Other facilities include a swimming pool and 12 meeting rooms.

Over the next several months, the hotel will unveil the Sheraton brand’s signature offerings including a Sheraton Club lounge, Link@Sheraton^SM experienced with Microsoft® where guests can come together to meet, connect and relax, and the revolutionary health and fitness program, Sheraton Fitness.

"There are many conversion opportunities for new Starwood hotels throughout Europe in both established and emerging destinations, through both managed and franchised deals,” said Bart Carnahan, Senior Vice President, Acquisitions & Development, Starwood Hotels & Resorts, Europe, Africa and Middle East. "Berlin is the gateway to Central and Eastern Europe and this signing underscores our commitment to growth in the region.”

One of the world’s most eclectic and cosmopolitan cities, Berlin is layered in history with many famed cultural attractions to discover. Sheraton Berlin Grand Hotel Esplanade is located close to the Kurfürstendamm shopping area and Potsdamer Platz entertainment district and is only 600 metres from Berlin's picturesque Tiergarten Park. The Nollendorfplatz underground railway station is a convenient 10-minute walk from the hotel.

Starwood currently has 26 hotels in Germany, representing six of its nine lifestyle brands – The Luxury Collection, Sheraton, Westin, Le Méridien, Four Points by Sheraton and Element. The Sheraton Berlin Grand Hotel Esplanade is the eleventh Sheraton hotel in Germany, joining The Westin Grand Berlin in the German capital. The company recently introduced its trailblazing Element brand with a landmark opening in the Frankfurt International Airport and is set to debut the innovative Aloft brand in Munich and Stuttgart in 2015.

About Sheraton Hotels & Resorts

Sheraton helps guests make connections at more than 400 hotels in nearly 70 countries around the world. The brand recently completed a $6 billion global revitalization and is now in the midst of an $8 billion global expansion over the next three years. Sheraton is owned by and is the largest and most global brand of Starwood Hotels & Resorts Worldwide, Inc., one of the leading hotel and leisure companies in the world with more than 1,200 properties in 100 countries and 181,400 employees at its owned and managed properties. Starwood 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, Aloft®, and Element®. The Company boasts one of the industry's leading loyalty programs, Starwood Preferred Guest (SPG®), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, please visit www.starwoodhotels.com.

About Esplanade Operation GmbH

The controlling shareholder of Esplanade Operation GmbH is Host Hotels & Resorts’ European Joint Venture. Host Hotels & Resorts is a long-term global partner of Starwood. Sheraton Berlin Grand Hotel Esplanade will be the second franchise with Starwood, the first being the Sheraton Memphis Downtown Hotel, Tennessee.