Starwood Offers Common Stock Of ITT Educational Services

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today the public offering of 11.35 million shares of ITT Educational Services, Inc. (NYSE: ESI) at $24.25 per share. Starwood has granted the Underwriters an option to purchase up to an additional 1.7 million shares to cover over-allotments, if any. After the offering, Starwood`s ownership in ESI will be approximately 41% unless the over-allotment option is exercised, in which case it could be 35%. The offering is expected to generate cash of about $275 million, which will be utilized to pay down debt.

``The sale of a portion of our ownership interest in ESI is consistent with our previously announced plan to sell non-strategic assets, maximize shareholder value, and focus on our core lodging and gaming units,`` said Barry S. Sternlicht, chairman and chief executive of Starwood Hotels and Resorts (The Trust) and chairman of the board of directors for Starwood Hotels and Resorts Worldwide, Inc. (The Corporation).

Credit Suisse First Boston, Bear, Stearns & Co. Inc., BT Alex.Brown, Merrill Lynch & Co., Morgan Stanley Dean Witter and Salomon Smith Barney are the managers of the underwriting syndicate offering the shares to the public.

A copy of the prospectus relating to the offering may be obtained from Credit Suisse First Boston Corporation, Eleven Madison Avenue, Prospectus Department, New York, New York 10010-3629, (Telephone Number 212-325-2580).

ESI is a leading proprietary provider of technology-oriented post-secondary degree programs in the United States. The company offers associate, bachelor, and master degree programs and non-degree diploma programs to over 24,000 students through a system of 63 ITT Technical Institutes located in 27 states.


Starwood Hotels & Resorts Worldwide, Inc., through its Sheraton, Westin and Caesars subsidiaries, is one of the leading hotel and gaming operating companies in the world. Starwood Hotels & Resorts is the largest real estate investment trust in the United States. Shares of Starwood Hotels & Resorts Worldwide, Inc. are paired and trade together with shares of Starwood Hotels & Resorts.