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Starwood Agrees to Hotel Danieli Sale

Starwood announced today that it has signed an agreement to sell the legendary 233-room Hotel Danieli in Venice to The Statuto Group, a prominent Italian real estate holding company, for 177 million Euros (approximately $244 million U.S.). The deal will take four to six months to close and Starwood has entered a long-term agreement to manage the hotel keeping it a member of its prestigious Luxury Collection.

The Statuto Group, which has been operating in the Italian real estate market for more than 50 years, plans a major renovation and restoration that will keep the history of this award-winning trophy hotel alive. The Hotel Danieli, a palace synonymous with the splendor and romance of Venice, is world-renowned for its luxurious elegance and is located just steps away from the Piazza San Marco and its Basilica. The main building of the Hotel Danieli is the original 14th century palace of Doge Dandolo’s family, a lavishly appointed Venetian gothic landmark.

“We are pleased to have entered into this agreement with such a prominent and respected real estate group such as Statuto.” said Ted Darnall, President, Starwood Real Estate Group. “Their long standing place in the Italian real estate market ensures that they will embrace the history and legacy of the Hotel Danieli and we are confident that this agreement will open the door to many other successful real estate ventures with Statuto.”

Other Starwood hotels in Venice include the Hotel Gritti Palace, The Westin Europa & Regina, The Westin Excelsior and the Hotel Des Bains in Venice, Lido.

The proceeds from the sale of this hotel combined with other recent asset sales totals $398 million, part of an additional $500 million the Company intends to sell by the end of summer 2005. The Company expects to use proceeds for share repurchase and for general corporate purposes.