Starwood Signs Sales Agreement

WHITE PLAINS, N.Y.—(BUSINESS WIRE)—July 29, 2003—Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) has signed a binding agreement to sell the 310-room BWI Airport Marriott and the 272-room Courtyard by Marriott Arlington Crystal City to Orlando-based CNL Hospitality Properties, Inc. (“CNL”) for approximately $104 million. The sale of these two non-Starwood branded hotels, subject to standard closing conditions, is expected during the third quarter.

Starwood is also in advanced negotiations with CNL to sell a majority interest in two additional domestic hotels that Starwood will continue to manage under long-term management agreements. Proceeds from these sales, coupled with other previously announced hotel sales in North America and Italy, will total approximately $1.1 billion and will be used to retire existing debt and for other general corporate uses.

Starwood Hotels & Resorts is one of the leading hotel and leisure companies in the world with more than 740 properties in 80 countries and 105,000 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, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W 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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