W Hotels Heads for the Heart of Istanbul, Where Fashion, Food and Art Meet Storied History

Starwood Hotels and Resorts Worldwide, Inc. (NYSE: HOT), theparent company to W Hotels, entered into a management agreement withAkaretler Otel Isletmeciligive Turizm A.S., a company controlled byMr. Serdar Bilgili, a prominent Turkish businessman, who will developthe property. With its east-west roots, the W Istanbul will complementthe other four W hotels planned for this region, in Barcelona, Athens,Dubai and Doha. Starwood will manage the hotel.

Scheduled to open in late 2007, the W Istanbul will serve as thecenterpiece of the redevelopment of the landmark Akaretler Row Housesin Besiktas. The historical Row was constructed by Sultan Adbulaziz inthe l870's to house workers of the Dolmabahce Palace, a symbol of themagnificence and decadence of the 19th-century Ottoman Empire.

Architect/designer Geomim, one of the most creative firms inTurkey, has been chosen to combine this authentic Ottoman-style designwith the unique signature design elements for which the W brand iscelebrated, including the Living Room experience, where guests andlocals can socialize, relax and unwind or recharge in a communalsetting. Located in the Besiktas district of Istanbul, known for itsdestination restaurants, bars and cafes, the W Istanbul will be inclose proximity to the Bosphorus Strait and Nisantasi, the city's mostfashionable shopping district. The hotel will also be a stone's throwaway from the Museum of Painting and Sculpture and a short drive tothe Old City, the Blue Mosque and the Istanbul Modern art museum.

"Istanbul's dynamic mix of history and modernity make it afantastic backdrop for W," said Ross Klein, President of W Hotels."The surfacing of world-class restaurants, art galleries and luxuryretailers in the city contribute to Istanbul's emergence as a favoriteinternational business and leisure destination."

"Istanbul is one of the most exciting cities in the region for allof Starwood's leading lifestyle brands, and we are thrilled to bereentering the market with W which is a perfect match for the energyand style of the city," said Roeland Vos, President of Starwood Hotelsand Resorts, Europe, Africa & Middle East.

The W Istanbul will have approximately 130 rooms, including suitesand duplex suites, many with their own private gardens. Guests willindulge in the W signature beds with feather-top mattresses, 350thread-count Egyptian cotton sheets and goose down comforters. They'llalso be treated to Whatever/Whenever service, the hotel's 24-hourconcierge that can provide whatever guests want (from a pair ofrunning shoes to private jet service), whenever they want it. Thethird floor common areas will offer views of the Bosphorus, therenowned waterway straight between the Black Sea and the Sea ofMarmara.

Mr. Serdar Bilgili is a prominent Turkish businessman and notablefigure in Istanbul's social and sporting communities. He is active intextiles, construction and hospitality and owns the highly exclusiveand successful boutique hotel, Ajia, on the banks of the Bosphorus.Mr. Bilgili is perhaps best known for his role as President of theBesiktas football club from 2000 to 2004.

W Hotels is a global lifestyle brand with 20 properties in themost vibrant cities around the world. Inspiring and indulging itsguests with thoughtful, refreshing and stylish experiences, signaturerestaurants, bars and destination spas, W has become the fastestgrowing luxury hotel brand in the world. Each hotel offers a uniquemix of innovative design, comfort and cultural influences from fashionto music to art and everything in between. Recent openings include W'sfirst property in Asia, W Seoul - Walkerhill and its first property inCanada, W Montreal. W Residences, offering the W lifestyle at home,have been announced for Las Vegas, Hollywood, South Beach, FortLauderdale, Phoenix, Scottsdale, Philadelphia and Hoboken. W's firstresidential property, W Dallas Victory, opened in June of 2006.Internationally, W has announced plans for hotels in the Maldives,Barcelona, Hong Kong, Shanghai, Santiago, Athens, Doha and Dubai. Formore information, visit www.whotels.com.

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 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.

(Note: This press release contains forward-looking statementswithin the meaning of federal securities regulations. Forward-lookingstatements are not guarantees of future performance or events andinvolve risks and uncertainties and other factors that may causeactual results or events to differ materially from those anticipatedat the time the forward-looking statements are made. These risks anduncertainties are presented in detail in our filings with theSecurities and Exchange Commission. Although we believe theexpectations reflected in such forward-looking statements are basedupon reasonable assumptions, we can give no assurance that ourexpectations will be attained or that results and events will notmaterially differ. We undertake no obligation to publicly update orrevise any forward-looking statement, whether as a result of newinformation, future events or otherwise.)