WHITE PLAINS, N.Y.—(BUSINESS WIRE)—Nov. 19, 2002—Construction will soon begin on Starwood Hotels & Resorts Worldwide, Inc.`s (NYSE: HOT) newest vacation ownership resort, The Westin Kierland Villas.

The resort is located on 10 acres within the exclusive 730-acre master-planned community of Kierland, home of the new Westin Kierland Resort & Spa.

“We are excited to begin construction on this beautiful resort in one of the most desired areas of Arizona and to add to our growing portfolio of Starwood-branded vacation ownership resorts,” said Jeffrey A. Adler, president and co-chief executive officer of Starwood Vacation Ownership. “This is our first Westin Vacation Ownership Resort in Arizona and our third in the state. The Villas of Cave Creek and Sheraton`s Desert Oasis are now both sold out. The Phoenix/Scottsdale Valley market is extremely popular for vacation ownership and we are eager to lead the industry in offering high-end, branded vacation ownership resorts for many years to come.”

The first phase of the resort will include 51 two-bedroom villas. Upon completion, there will be 158 luxurious villas. Pending receipt of the project`s approval by the Arizona Department of Real Estate, pre-sale of the villas will begin in January with prices ranging from the mid-teens to the mid-twenties for a deeded one week vacation ownership interest in the resort. The first phase is scheduled to open in mid-2004.

Each two-bedroom villa is designed to capture the modern luxury and style in keeping with the Westin name. The fully-equipped kitchens include everything needed for a gourmet meal, the separate living room and dining room provide plenty of space for families and guests, the master bedroom is its own oasis complete with a whirlpool tub and, of course, the Heavenly Bed(R).

Overlooking the Kierland Golf Club, the Westin Kierland Villas will have a lavish amenities package featuring a large family-oriented pool complete with water slide, cabanas and outdoor fireplace. In addition, there will be an adult-only pool as well as a children`s pool. Gas barbeque grills, separate family and adult spas, a fitness center and a poolside pavilion combine to give owners and guests the perfect place to relax.

“This is our fourth Westin-branded vacation ownership resort and an important part of our growing collection of resorts in premier destinations including Hawaii, Colorado, California, Florida, South Carolina and the Caribbean,” said Raymond L. “Rip” Gellein, Jr., chairman and co-chief executive officer. “A vacation ownership resort is a natural compliment to Starwood`s traditional lodging and offers guests the benefit of owning at one of the world`s premier destinations.”

The Westin Kierland Villas will become part of the newly formed Starwood Vacation Network (SVN), an innovative exchange program that gives its members easy access to other exciting Sheraton and Westin Vacation Ownership resorts as well as to Starwood Hotels & Resorts Worldwide, Inc.`s more than 750 properties around the world. SVN will provide its members with worldwide opportunities to experience Starwood`s exceptional brands including St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton and W Hotels. SVN was developed to meet the needs of today`s travelers resulting in a user-friendly system that emphasizes flexibility and access to all of Starwood`s hotels and resorts worldwide. In addition to SVN, Westin Kierland Villas owners will also have access to Interval International, an external exchange program.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 750 properties in more than 80 countries and 110,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchisor of hotels and resorts including: St. Regis(R), The Luxury Collection(R), Sheraton(R), Westin(R), Four Points(R) by Sheraton, W(R) brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwood.com.

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