Starwood releases fourth quarter 2008 results

Starwood Hotels & Resorts Worldwide, Inc. has reported fourth quarter 2008 results.Fourth Quarter 2008 Highlights
Excluding special items, EPS from continuing operations was $0.49. Including
special items, EPS from continuing operations was a loss of $0.25.

Total Company Adjusted EBITDA was $273 million.

Excluding special items, income from continuing operations was $88 million.
Including special items, the loss from continuing operations was $45 million.

Special items totaled $133 million of net charges ($0.74 per share) primarily related
to $30 million of severance costs, $79 million of impairment charges from
discontinued vacation ownership projects and $86 million of impairment charges
primarily at five owned hotels in North America.

Worldwide System-wide REVPAR for Same-Store Hotels decreased 12.1% (9.1% in
constant dollars) compared to the fourth quarter of 2007. System-wide REVPAR for
Same-Store Hotels in North America decreased 13.2% (11.7% in constant dollars).

Management and franchise revenues decreased 4.7% compared to 2007.

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels decreased
19.6% (15.4% in constant dollars) compared to the fourth quarter of 2007. REVPAR
for Starwood branded Same-Store Owned Hotels in North America decreased
18.6% (16.3% in constant dollars).

Margins at Starwood branded Same-Store Owned Hotels Worldwide and in North
America decreased 479 and 596 basis points, respectively, compared to the fourth
quarter of 2007
.
Revenues from vacation ownership and residential sales decreased 48.7%
compared to 2007.

The Company signed 31 hotel management and franchise contracts in the quarter
representing approximately 6,100 rooms. For the full year, the Company signed
147 hotel contracts representing approximately 35,700 rooms.

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported
a loss from continuing operations for the fourth quarter of 2008 of $0.25 per share
compared to EPS of $0.74 in the fourth quarter of 2007. Excluding special items, which
net to a charge of $133 million in 2008 and $11 million in 2007, EPS from continuing
operations was $0.49 for the fourth quarter of 2008 compared to $0.79 in the fourth quarter
of 2007. Excluding special items, the effective income tax rate in the fourth quarter of 2008
was 27.5% compared to 28.5% in the same period of 2007.

Worldwide System-wide REVPAR for Same-Store Hotels decreased 12.1% (9.1% using
constant dollars) compared to the fourth quarter of 2007. International System-wide
REVPAR for Same-Store Hotels decreased 10.8% (6.1% using constant dollars).
Worldwide System-wide REVPAR increased 8.6% in Africa and the Middle East.
Worldwide System-wide REVPAR decreases for the other regions were: 3.3% in Latin
America, 13.2% in North America, 14.4% in Asia Pacific, and 17.8% in Europe. Worldwide
System-wide REVPAR decreases by brand were: Sheraton 9.6%, Westin 11.4%, Le
Méridien 11.5%, Four Points by Sheraton 11.5%, W Hotels 21.1%, and St. Regis/Luxury
Collection 23.3%.

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels decreased 19.6%.
REVPAR at Starwood branded Same-Store Owned Hotels in North America decreased
18.6%. Internationally, Starwood branded Same-Store Owned Hotel REVPAR decreased
21.3% (down 9.1% using constant dollars).
——-