STAMFORD, Conn.–(BUSINESS WIRE^[1])–Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today announced
that its largest brand, Sheraton Hotels, and its owners are investing
more than $350 million to enhance its flagship properties around the
world. The global hotel giant will unveil several large-scale renovation
projects this year including the $160 million renovation of the Sheraton
New York Hotel & Towers, the multi-million dollar refurbishment effort
of the Sheraton Grand Hotel & Spa in Edinburgh, and the $20 million
renovation of the “grande dame” of Australia –Sheraton Mirage Resort &
Spa Gold Coast. In addition, several Sheraton landmark hotels will
kick-off impressive, multi-million dollar renovations this year,
including the Sheraton Rio Hotel & Resort in Brazil, Sheraton Maria
Isabel Hotel & Towers in Mexico City, and the Great Wall Sheraton Hotel
Beijing, Sheraton Xian Hotel, Sheraton Chengdu Hotel and Sheraton
Nanjing Hotel in China.

“We are delighted to follow our highly successful $6 billion brand-wide
revitalization with a significant investment in several of our flagship
properties,” said Hoyt Harper, Global Brand Leader for Sheraton Hotels &
Resorts. “As business and leisure travel continues to gain momentum,
Sheraton is well positioned to meet the increased demand for
high-caliber lodging with upgraded brand offerings and a line-up of
freshly renovated landmark hotels in key cities across the globe.”

Starwood has spent the last few years renovating and rebuilding one of
the hotel industry’s most iconic brands and Sheraton now stands taller
than ever with the strongest portfolio in its history. The brand is
gaining market share, RevPAR continues to rise, guest satisfaction
scores are the highest in the brand’s history and likelihood to return,
likelihood to recommend and meeting planner and associate engagement
scores are also at all-time highs – signaling that guests are taking
notice and rediscovering the new Sheraton.

Landmark Hotel in Scotland Celebrates
Multi-Million Dollar Floor-to-Ceiling Renovation

Later this month, the Sheraton Grand Hotel & Spa in Edinburgh, Scotland
will unveil its multi-million dollar make-over. The UK’s flagship
Sheraton Hotel will offer fully refurbished guestrooms, over
14,000-square-feet of newly renovated meeting and event space, and a new
restaurant and bar, in addition to the brand’s signature offerings. The
Sheraton Grand Hotel is also home to One Spa, one of Europe’s most
renowned spas. The updated Sheraton Grand Hotel & Spa will be
Edinburgh’s newest five-star hotel with the benefit of more than 25
years of operational excellence.

Sheraton Builds Upon its Legacy in Asia Pacific
with Five Major Enhancements

Known as the “grand dame” of Australia, the Sheraton Mirage Resort & Spa
Gold Coast will unveil its $20 million facelift. Enhancements have been
made to the hotel entry, from the Porte Cochere to the lobby and
reception area, the elevators bringing guests to the updated corridors
and 293 guestrooms and suites, landscaping around the pool, and Terraces
Restaurant and Breakers Lounge. This glamorous hotel is now the Gold
Coast’s only five-star resort to offer an absolute beachfront location.

The Great Wall Sheraton Hotel Beijing was the first five-star
international hotel to open in China in 1985. Now, the brand and its
owners are investing $50 million to renovate this landmark property and
show Sheraton’s continued dedication to providing the highest level of
excellence in this region. Over the next three years, The Great Wall
Sheraton Hotel Beijing will undergo an expansive overhaul of its three
wings – one wing at a time – including renovation of all guestrooms,
public spaces and all food and beverage outlets.

Other noteworthy multi-million renovation efforts in the region include
the Sheraton Xian Hotel, Sheraton Chengdu Hotel, and Sheraton Nanjing
Hotel.

Two Key Properties in Latin America Slated for
Extensive Renovations

In March, the Sheraton Santiago Hotel & Convention Center in Chile will
complete the final phase of its extensive $13.5 million floor-to-ceiling
improvements which includes a full renovation to the hotel’s lobby and
convention center and all public areas including outdoor swimming pool
and terrace, and outdoor restaurant.

This April, the Sheraton Rio Hotel & Resort in Brazil will start the
first phase of its $30 million renovation effort that includes
large-scale enhancements to the hotel’s 542 guestrooms, Sheraton Club
floors and club lounge, lobby, and lobby bar, including a new
Link@Sheraton Café. Sheraton Rio Hotel & Resort will also add a new
Shine Spa and Sheraton Fitness Programmed by Core Performance gym. The
Convention Center will be expanded from 22,400-square-feet to
27,400-square-feet, making it the ideal venue for large events.

Later this year Sheraton Maria Isabel Hotel & Towers in Mexico City will
embark on the first phase of a multi-million dollar renovation of 320
rooms which will completed by the end of 2012.

Sheraton New York Hotel & Towers Nears
Completion of $160 Million Makeover

Led by internationally renowned interior architectural firm Wilson
Associates, the 50-story iconic hotel has undergone a $150 million
redesign scheduled for completion in April. The two-phase renovation
includes an enhancement of the Sheraton Club lounge and a significant
expansion of its 1,780 guestroom and suites. The prominent New York City
landmark, which recently celebrated its 50^th anniversary,
also features signature offerings of the Sheraton brand’s recent $6
billion revitalization effort including the Link@Sheraton^SM
experience with Microsoft®, Link@Sheraton Café and Sheraton Fitness
Programmed by Core Performance.

Sheraton Hotels & Resorts, like all brands within Starwood’s robust
portfolio, is proud to offer the Starwood Preferred Guest® program,
which made headlines when it launched in 1999 with a breakthrough policy
of no blackout dates on Free Night Awards. SPG® offers members the
ability to redeem awards at more resorts, more luxury properties, more
European hotels and more golf properties than any other hotel program.

For more information on Sheraton Hotels & Resorts, please visit www.sheraton.com^[2]
or www.facebook.com/Sheraton^[3].
Follow Sheraton on Twitter, @SheratonHotels.

About Starwood Hotels & Resorts Worldwide, Inc.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel
and leisure companies in the world with 1,090 properties in 100
countries and territories with 154,000 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, Aloft®, and Element^SM. 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 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^[4]

(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.)