Starwood Hotel & Resorts Worldwide 8-K Starwood Reports Fourth Quarter 2009 Results

Exhibit 99.1

CONTACT: Jason Koval
                       (914) 640-4429

FOR IMMEDIATE RELEASE
February 4, 2010

STARWOOD REPORTS FOURTH QUARTER 2009 RESULTS

WHITE PLAINS, NY, February 4, 2010— Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported fourth quarter 2009 financial results.

Fourth Quarter 2009 Highlights

• Excluding special items, EPS from continuing operations was $0.51. Including special items, EPS from continuing operations was a loss of $1.03.

• Adjusted EBITDA was $247 million.

• Excluding special items, income from continuing operations was $95 million. Including special items, the loss from continuing operations was $186 million.

• Special items totaled a pre-tax charge of $431 million ($281 million net of tax or $1.54 per share), including a pre-tax non-cash impairment charge of $362 million related to inventory, fixed assets and goodwill at Starwood Vacation Ownership.

• Worldwide System-wide REVPAR for Same-Store Hotels decreased 7.2% (9.6% in constant dollars) compared to the fourth quarter of 2008. System-wide REVPAR for Same-Store Hotels in North America decreased 10.1% (10.7% in constant dollars).

• Management and franchise revenues increased 0.6% compared to 2008.

• Worldwide REVPAR for Starwood branded Same-Store Owned Hotels decreased 7.9% (10.9% in constant dollars) compared to the fourth quarter of 2008. REVPAR for Starwood branded Same-Store Owned Hotels in North America decreased 9.6% (10.7% in constant dollars).

• Operating income from vacation ownership and residential declined $5 million compared to 2008.

• In the quarter, the Company signed 20 hotel management and franchise contracts representing approximately 4,200 rooms and opened 24 hotels with approximately 5,000 rooms.

• The Company completed a series of dispositions and financing transactions during the fourth quarter that resulted in cash proceeds of approximately $650 million. These cash proceeds were primarily used to prepay debt maturing in 2010 to 2013, reducing net debt at December 31, 2009 to $2.819 billion.

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Fourth Quarter 2009 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported a loss from continuing operations for the fourth quarter of 2009 of $1.03 per share compared to $0.25 in the fourth quarter of 2008. Excluding special items, which net to a charge of $281 million in 2009 and $133 million in 2008, EPS from continuing operations was $0.51 for the fourth quarter of 2009 compared to $0.49 in the fourth quarter of 2008. Excluding special items, the effective income tax rate in the fourth quarter of 2009 was 4.1% compared to 27.5% in the same period of 2008 primarily due to a lower overall effective tax rate on foreign earnings.

Special items in the fourth quarter of 2009 totaled a pretax charge of $431 million ($281 million after tax or $1.54 per share) and were related to the following primarily non-cash charges:

• $362 million of impairment charges related to the Company’s decision to no longer pursue development of certain vacation ownership projects, charges related to price reductions at certain vacation ownership projects and impairment of goodwill associated with the vacation ownership business.

• $42 million of impairment charges primarily related to five owned hotels.

• $17 million charge associated with tender premiums and other costs related to the prepayment of approximately $600 million of the Company’s long-term debt.

• $10 million of severance and other costs associated with the Company’s ongoing initiative of rationalizing its cost structure.

The loss from continuing operations was $186 million in the fourth quarter of 2009 compared to $45 million in 2008. Excluding special items, income from continuing operations was $95 million in the fourth quarter of 2009 compared to $88 million in 2008.

The net loss was $107 million and $0.59 per share in the fourth quarter of 2009 compared to net income of $79 million and EPS of $0.44 in the fourth quarter of 2008.

Frits van Paasschen, CEO said, “We ended 2009 with the best REVPAR results we have seen since the third quarter of 2008, and our continued focus on costs allowed us to beat expectations again in the quarter. Lodging demand continued to improve in the fourth quarter, with group and business transient posting positive bookings. After being buffeted by headwinds throughout 2009, our portfolio is set to begin a rebound in 2010 from a deep drop-off.”

“We believe that our competitive position in the global marketplace as an operator of lifestyle hospitality brands continues to build. Importantly, the forces of globalization, capital flows, emerging middle class and demand for hotel infrastructure are alive and well, and we intend to capture more than our fair share of this growth.”

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Fourth Quarter 2009 Operating Results

Management and Franchise Revenues

Worldwide System-wide REVPAR for Same-Store Hotels decreased 7.2% (9.6% in constant dollars) compared to the fourth quarter of 2008. International System-wide REVPAR for Same-Store Hotels decreased 3.9% (8.4% in constant dollars).

Worldwide System-wide REVPAR for Same-Store changes by region:

	4Q09 REVPAR
Region	Reported			Constant dollars
North America		-10.1	%		-10.7	%
Europe		-1.8	%		-9.1	%
Asia Pacific		+1.1	%		-5.4	%
Africa and the Middle East		-11.9	%		-10.6	%
Latin America		-11.7	%		-11.7	%

Worldwide System-wide REVPAR for Same-Store changes by brand:

	4Q09 REVPAR
Brand	Reported			Constant dollars
St. Regis/Luxury Collection		-4.4	%		-8.5	%
W Hotels		-2.3	%		-2.9	%
Westin		-7.2	%		-10.0	%
Sheraton		-7.6	%		-9.3	%
Le Méridien		-8.9	%		-12.7	%
Four Points by Sheraton		-8.8	%		-11.9	%

Worldwide Same-Store company-operated gross operating profit margins declined approximately 240 basis points in the fourth quarter driven by REVPAR declines, partially offset by continued cost-cutting efforts at the property level. International gross operating profit margins for Same-Store company-operated properties declined approximately 160 basis points, and North American Same-Store company-operated gross operating profit margins declined approximately 380 basis points.

Management fees, franchise fees and other income were $185 million, down $6 million, or 3.1%, from the fourth quarter of 2008. Management fees decreased 11.9% to $104 million and franchise fees decreased 2.8% to $35 million. Other income excludes revenues from the Company’s former Bliss spa business which have been reclassified to discontinued operations for both 2009 and 2008 as a result of the sale of Bliss at the end of 2009.

During the fourth quarter of 2009, the Company signed 20 hotel management and franchise contracts, representing approximately 4,200 rooms, of which 16 are new builds and four are conversions from other brands. At December 31, 2009, the Company had approximately 350 hotels in the active pipeline representing approximately 85,000 rooms.

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During the fourth quarter of 2009, 24 new hotels and resorts (representing approximately 5,000 rooms) entered the system, including the W Barcelona (Spain, 473 rooms), the Westin Hyderabad Mindspace (India, 252 rooms), the Le Méridien Chongqing (China, 319 rooms), the Sheraton Puerto Rico Convention Center Hotel & Casino (San Juan, 503 rooms), the W Boston (Massachusetts, 235 rooms) and seven Aloft hotels. Fourteen properties (representing approximately 4,000 rooms) were removed from the system during the quarter.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels decreased 7.9% (10.9% in constant dollars). REVPAR at Starwood branded Same-Store Owned Hotels in North America decreased 9.6% (10.7% in constant dollars). Internationally, Starwood branded Same-Store Owned Hotel REVPAR decreased 4.6% (11.3% in constant dollars).

The Company’s continued rigorous cost cutting programs helped mitigate the impact of sharp revenue declines during the quarter.

Revenues at Starwood branded Same-Store Owned Hotels in North America decreased 11.0% (12.2% in constant dollars) while costs and expenses decreased 5.7% when compared to 2008.

Revenues at Starwood branded Same-Store Owned Hotels Worldwide decreased 8.8% (11.9% in constant dollars) while costs and expenses decreased 6.3% when compared to 2008.

Revenues at owned, leased and consolidated joint venture hotels were $430 million when compared to $493 million in 2008.

Vacation Ownership

Total vacation ownership revenues of $134 million were flat when compared to 2008. Originated contract sales of vacation ownership intervals decreased 10.9% primarily due to an overall decline in demand due to the current economic climate. The average price per vacation ownership unit sold decreased 7.1% to approximately $15,000, driven by a higher sales mix of lower-priced inventory, including a higher percentage of biennial inventory. The number of contracts signed decreased 5.5% when compared to 2008. During the fourth quarter of 2009, the Company sold vacation ownership notes receivable and recognized gains of $23 million.

As previously announced, during the fourth quarter of 2009, the Company completed a comprehensive review of its vacation ownership projects. No new projects are being initiated and the Company has decided not to develop certain vacation ownership sites and future phases of certain existing projects. As a result, inventories, fixed assets and land values at certain projects were determined to be impaired and were written down to their fair value, resulting in a non-cash pre-tax impairment charge of $255 million. Additionally, in connection with this review of the business, the Company made a decision to reduce the pricing of certain inventory at existing projects, resulting in a pre-tax charge of $17 million, recorded in the vacation ownership and residential costs and expenses line.

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Finally, as a result of these decisions and the Company’s future plans for the vacation ownership business, the Company recorded a $90 million non-cash charge for the impairment of goodwill associated with the vacation ownership business.

The Company believes it has a best-in-class team at SVO, with some of the best brands and resorts in the industry. These decisions reflect Starwood’s new strategy for the vacation ownership business, including reducing its capital requirements and positioning SVO to generate cash for the Company.

Selling, General, Administrative and Other

Selling, general, administrative and other expenses increased 8.2% to $79 million compared to the fourth quarter of 2008. Costs and expenses related to the Company’s former Bliss spa business have been reclassified to discontinued operations for both 2009 and 2008 as a result of the sale of Bliss at the end of 2009.

Restructuring Charges, Goodwill Impairment and Other Special Charges, Net

During the fourth quarter of 2009, the Company recorded a pre-tax charge of $355 million, including $255 million of impairment charges related to vacation ownership projects and a $90 million charge related to the impairment of vacation ownership goodwill, as discussed above, and $10 million of severance and other costs associated with its ongoing initiative of rationalizing its cost structure in light of the current economic climate.

Loss on Asset Dispositions and Impairments, Net

During the fourth quarter of 2009, the Company recorded impairment charges of $42 million primarily related to five owned hotels where their carrying value exceeded their estimated fair values as a result of the significant decline in the business at those hotels.

Discontinued Operations

During the fourth quarter of 2009, the Company sold its Bliss spa business, its Fifth Avenue retail shops at the St. Regis New York, and other non-core assets for cash proceeds of $227 million. Revenues and expenses from these entities, together with revenues and expenses from two hotels which are in the process of being sold, have been reclassified to discontinued operations resulting in a loss of $1 million, net of tax. In addition, the net gain on these sales has been recorded in discontinued operations resulting in income of $80 million, net of tax. Prior period results have been adjusted to reflect these reclassifications.

Capital

Gross capital spending during the quarter included approximately $40 million of maintenance capital and $28 million of development capital. Investment spending on net vacation ownership interest (“VOI”) and residential inventory was $4 million, primarily in Bal Harbour. The run rate of spending on development and investment capital declined throughout the year as in-flight projects were completed.

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Dividend

In October 2009, the Company’s Board of Directors declared its annual dividend of $0.20 per share. The dividend was paid by the Company on January 14, 2010 to holders of record on December 31, 2009.

Balance Sheet

At December 31, 2009, the Company had total debt of $2.960 billion and cash and cash equivalents of $141 million (including $54 million of restricted cash), or net debt of $2.819 billion, compared to net debt of $3.207 billion and $3.517 billion as of September 30, 2009 and December 31, 2008, respectively.

At December 31, 2009, debt was approximately 78% fixed rate and 22% floating rate and its weighted average maturity was 5.1 years with a weighted average interest rate of 6.73%. The Company had cash (including current restricted cash) and availability under the domestic and international revolving credit facility of approximately $1.735 billion.

During the fourth quarter of 2009, the Company completed a series of dispositions and financing transactions that resulted in cash proceeds of approximately $650 million as outlined below:

• The Company sold non-core assets for cash proceeds of approximately $227 million.

• The Company sold approximately $200 million of vacation ownership notes receivable realizing cash proceeds of $166 million. The Company recorded a gain on the sale of these receivables of approximately $19 million. In addition, the terms of the Company’s June 2009 securitization were amended, resulting in additional cash proceeds of approximately $9 million and a gain of $4 million.

• The Company completed a public offering of $250 million of 7.150% Senior Notes due 2019 and used the proceeds to complete a $300 million tender offer to purchase $195 million of its 7.875% Senior Notes due 2012 and $105 million of its 6.250% Senior Notes due 2013.

IRS Tax Settlement

In January 2009, the Company and the IRS reached an agreement in principle to settle the litigation pertaining to the tax treatment of the Company’s 1998 disposition of World Directories, Inc. Under the proposed settlement, the Company expects to receive a refund in 2010 of over $200 million as a result of tax payments previously made.

Results for the Twelve Months Ended December 31, 2009

The loss from continuing operations was $1 million or $0.00 per share in 2009, compared to income from continuing operations of $249 million, or $1.34 per share in 2008. Excluding special items, income from continuing operations was $188 million, or $1.02 per share in 2009, compared to $400 million, or $2.16 per share in 2008. Net income was $73

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million and EPS was $0.41 in 2009, compared to $329 million and $1.77, respectively, in 2008. Total Company Adjusted EBITDA, which was impacted by the sale or closure of 15 hotels since the beginning of 2008, was $793 million in 2009, compared to $1.157 billion in 2008.

Outlook

For the Full Year 2010:

It is very difficult at this time to provide any definitive point of view on 2010. While business conditions continue to improve from depressed levels, it is very hard to forecast the pace of recovery, especially rate. While group bookings have picked up, booking pace for 2010 has continued to lag behind 2009. Booking windows for both transient and group business have remained short. As such, late breaking business is a larger component of what will drive our performance in 2010 making forward looking predictions four quarters out particularly challenging. What we can provide are broad guidelines that we are using for internal planning purposes:

Based on our fourth quarter results and our expectations for the first quarter, full year 2010 REVPAR at Same-Store Company Operated Hotels Worldwide could be flat to +5% in local currency and approximately 100 bps higher in dollars at current exchange rates. REVPAR at Branded Same-Store Owned Hotels Worldwide could be -2% to +2% in local currency and approximately 100 bps higher in dollars at current exchange rates.

At the midpoint of these REVPAR ranges, adjusted EBITDA would be approximately $750 million (+/- one point of REVPAR drives +/- $15 million of EBITDA).

• EPS before special items would be approximately $0.63.

• Management and franchise revenues will increase approximately 0% to 5%.

• Selling, General and Administrative expenses will increase 3% to 5%.

• Operating income from our vacation ownership and residential business will be approximately $115 million to $125 million, including the impact of adopting SFAS 167, Amendments to FASB Interpretation No. 46(R).

• Full year depreciation and amortization will be approximately $335 million.

• Full year interest expense will be approximately $262 million (including $20 million to $23 million from the impact of adopting SFAS 167) and cash taxes will be approximately $75 million.

• Full year effective tax rate will be approximately 22%.

• Full year capital expenditures (excluding vacation ownership and residential inventory) would be approximately $150 million for maintenance, renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments will total approximately $100 million. Vacation ownership is expected to generate approximately $150 million in positive cash flow,

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including proceeds from a planned securitization in late 2010. Bal Harbour capital will be approximately $140 million.

For the three months ended March 31, 2010:

• Adjusted EBITDA is expected to be approximately $135 million to $145 million assuming:

• REVPAR change at Same-Store Company Operated Hotels Worldwide of -2% to flat in local currency (+1% to +3% in dollars at current exchange rates).

• REVPAR change at Branded Same-Store Owned Hotels Worldwide of -3% to -5% in local currency (-1% to +1% in dollars at current exchange rates).

• Management and franchise revenues will be up approximately 1% to 3%.

• Operating income from our vacation ownership and residential businesses will be flat to down $5 million.

• Income from continuing operations, before special items, is expected to be approximately $(8) million to flat, reflecting an effective tax rate of approximately 22%.

• Interest expense is expected to be $63 million.

• Depreciation and amortization is expected to be $83 million.

• EPS before special items is expected to be approximately ($0.04) to flat.

Impact of SFAS 167

The Company adopted SFAS 167 on January 1, 2010. This new accounting rule impacts the accounting for securitized vacation ownership loans. As a result of the adoption of this rule, the Company expects its reported assets (accounts receivable and other assets) to increase by approximately $400 million and its reported liabilities (short-term and long-term debt) to increase by $445 million, prior to any tax effects. Also as a result of the accounting change, vacation ownership pretax earnings for 2010 are expected to increase by approximately $20 million to $23 million and EBITDA is expected to increase by approximately $40 million to $45 million. The new accounting rule is not expected to have any impact on the Company’s cash flow.

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Special Items

The Company’s special items netted to a pre-tax charge of $431 million ($281 million after-tax) in the fourth quarter of 2009 compared to $195 million ($133 million after-tax) in the same period of 2008.

The following represents a reconciliation of income from continuing operations before special items to income from continuing operations including special items (in millions, except per share data):

Three Months Ended							Year Ended
December 31,							December 31,
2009			2008				2009			2008
$	95		$	88		Income from continuing operations before special items	$	188		$	400
$	0.51		$	0.49		EPS before special items(a)	$	1.02		$	2.16
						Special Items
	(355	)		(109	)	Restructuring, goodwill impairment and other special charges, net(b)		(379	)		(141	)
	(42	)		(86	)	Loss on asset dispositions and impairments, net(c)		(91	)		(98	)
	(17	)		—		Debt extinguishment(d)		(17	)		—
	(17	)		—		Cost of sales adjustments(e)		(17	)		—
	(431	)		(195	)	Total special items — pre-tax		(504	)		(239	)
	113			62		Income tax benefit for special items(f)		158			88
	37			—		Foreign tax credits(g)		37			—
	—			—		Italian income tax incentive(h)		120			—
	(281	)		(133	)	Total special items — after-tax		(189	)		(151	)
$	(186	)	$	(45	)	Income (loss) from continuing operations	$	(1	)	$	249
$	(1.03	)	$	(0.25	)	EPS (loss per share) including special items	$	0.00		$	1.34

(a)	Diluted shares for the three months ended December 31, 2009 and 2008 are 187 million and 181 million, respectively. Diluted shares for the twelve months ended December 31, 2009 is 184 million.
(b)	During the three months ended December 31, 2009 and 2008, the Company recorded restructuring charges of $10 million and $30 million, respectively, consisting primarily of severance and consulting charges related to its ongoing initiative to streamline operations and eliminate costs.
	The three months ended December 31, 2009, also includes impairment charges of $255 million, following an in depth review of the vacation ownership business which resulted in a decision not to develop certain vacation ownership sites and future phases of certain existing projects. Additionally, the three months ended December 31, 2009 includes a $90 million charge related to the impairment of goodwill associated with the vacation ownership business.
	The three months ended December 31, 2008, also includes other special charges of $79 million primarily related to impairment charges associated with two vacation ownership projects that the Company no longer plans to develop as a result of the current economic crisis and its expected long-term impact on this business.
	The years ended December 31, 2009 and 2008 include additional restructuring costs associated with its ongoing initiative to streamline operations.
(c)	During the three months ended December 31, 2009, the Company recorded impairment charges of $42 million primarily related to five owned and leased hotels, where their carrying amounts exceeded their estimated fair values, as a result of the significant decline in the business at those hotels.
	The year ended December 31, 2009 also includes impairment charges of $49 million primarily related to the Company’s retained interests in securitized vacation ownership notes receivable, certain fixed assets and an owned hotel. The full year excludes approximately $16 million of losses recorded in the first three quarters of the year, which were reclassified to discontinued operations to conform to the fourth quarter presentation.
	During the three months ended December 31, 2008, the Company recorded impairment charges of $64 million on five owned hotels where their carrying values exceeded their estimated fair values and a $22 million impairment charge to write down its retained interests in securitized vacation ownership notes receivable.
	The net loss for the year ended December 31, 2008, also includes an impairment charge of $11 million associated with the Company’s equity interest in a joint venture that owns land that it no longer intends to develop.

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(d)	The three months and year ended December 31, 2009 include $17 million of charges associated with tender premiums and other costs related to the early extinguishment of approximately $600 million of the Company’s long term debt. These charges were recorded in the interest expense line item.
(e)	The three months and year ended December 31, 2009 include $17 million of charges in connection with the Company’s in-depth review of the vacation ownership business and the resulting decision to reduce pricing of certain inventory at existing projects. These charges were recorded in the vacation ownership and residential costs and expenses line item.
(f)	The three months and year ended December 31, 2009 reflect tax benefits at the statutory rate for the special items and a tax benefit for hotel sales with higher tax basis, partially offset by permanent tax charges associated with the loss on certain asset dispositions. The three months and year ended December 31, 2008 relate to the favorable impacts of capital loss utilization and tax benefits at the statutory rate for the special items.
(g)	During the three months ended December 31, 2009, the Company took steps including the completion of certain internal transactions that enabled the Company to change its election for several prior tax years to claim a foreign tax credit as opposed to a foreign tax deduction.
(h)	During the year ended December 31, 2009, benefit relates to an Italian tax incentive program through which the tax basis of Italian owned hotels were stepped up in exchange for paying a relatively minor tax.

The Company has included the above supplemental information concerning special items to assist investors in analyzing Starwood’s financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

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Starwood will be conducting a conference call to discuss the fourth quarter financial results at 10:30 a.m. (EST) today at (706) 758-8744. The conference call will be available through a simultaneous web cast in the Investor Relations/Press Releases section of the Company’s website athttp://www.starwoodhotels.com. A replay of the conference call will also be available from 1:30 p.m. (EST) today through February 11, 2010 at 12:00 midnight (EST) on both the Company’s website and via telephone replay at (706) 645-9291 (pass code #46323963).

Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations attributable to Starwood’s common shareholders. All references to continuing operations, discontinued operations and net income reflect amounts attributable to Starwood’s common shareholders (i.e. excluding amounts attributable to noncontrolling interests). All references to “net capital expenditures” mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and amortization. The Company believes that EBITDA is a useful measure of the Company’s operating performance due to the significance of the Company’s long-lived assets and level of indebtedness. EBITDA is a commonly used measure of performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company’s operating performance. It also facilitates comparisons between the Company and its competitors. The Company’s management has historically adjusted EBITDA (i.e., “Adjusted EBITDA”) when evaluating operating performance for the total Company as well as for individual properties or groups of properties because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items, such as restructuring, goodwill impairment and other special charges and gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. The Company’s management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. The Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and provides a means to evaluate the results of its core on-going operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be considered as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies and, therefore, comparability may be limited.

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All references to Same-Store Owned Hotels reflect the Company’s owned, leased and consolidated joint venture hotels, excluding condo hotels, hotels sold to date and hotels undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed due to seasonality or natural disasters). References to Company Operated Hotel metrics (e.g. REVPAR) reflect metrics for the Company’s owned and managed hotels. References to System-Wide metrics (e.g. REVPAR) reflect metrics for the Company’s owned, managed and franchised hotels. REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology.

All references to management and franchise revenues represent base and incentive fees, franchise fees, amortization of deferred gains resulting from the sales of hotels subject to long-term management contracts and termination fees offset by payments by Starwood under performance and other guarantees.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 992 properties in almost 100 countries and 145,000 employees at its owned and managed properties. Starwood® Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Sheraton, aloft(SM), and element(SM). Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com.

** Please contact Starwood’s new, toll-freemedia hotline at(866) 4-STAR-PR
(866-478-2777) for photography or additional information.**

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, business and financing conditions, foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use approvals for the development of vacation ownership resorts. There can also be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated. There can also be no assurance that agreements will be entered into for the hotels in the Company’s pipeline and, if entered into, the timing of any agreement and the opening of the related hotel. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)

Three Months Ended										Year Ended
December 31,										December 31,
						%										%
2009			2008			Variance				2009			2008			Variance
									Revenues
$	430		$	493			(12.8	)	Owned, leased and consolidated joint venture hotels	$	1,584		$	2,212			(28.4	)
	136			136			—		Vacation ownership and residential sales and services		523			749			(30.2	)
	185			191			(3.1	)	Management fees, franchise fees and other income		658			751			(12.4	)
	532			478			11.3		Other revenues from managed and franchised properties(a)		1,991			2,042			(2.5	)
	1,283			1,298			(1.2	)			4,756			5,754			(17.3	)
									Costs and Expenses
	343			384			10.7		Owned, leased and consolidated joint venture hotels		1,315			1,688			22.1
	116			111			(4.5	)	Vacation ownership and residential		422			583			27.6
	79			73			(8.2	)	Selling, general, administrative and other		314			377			16.7
	355			109			n/m		Restructuring, goodwill impairment and other special charges, net		379			141			n/m
	68			72			5.6		Depreciation		274			281			2.5
	10			6			(66.7	)	Amortization		35			32			(9.4	)
	532			478			(11.3	)	Other expenses from managed and franchised properties(a)		1,991			2,042			2.5
	1,503			1,233			(21.9	)			4,730			5,144			8.0
	(220	)		65			n/m		Operating (loss) income		26			610			(95.7	)
	1			2			(50.0	)	Equity earnings and gains and (losses) from unconsolidated ventures, net		(4	)		16			n/m
	(71	)		(57	)		(24.6	)	Interest expense, net of interest income of $1, $0, $3 and $3		(227	)		(207	)		(9.7	)
	(42	)		(86	)		(51.2	)	Loss on asset dispositions and impairments, net		(91	)		(98	)		7.1
	(332	)		(76	)		n/m		(Loss) income from continuing operations before taxes		(296	)		321			n/m
	146			30			n/m		Income tax benefit (expense)		293			(72	)		n/m
	(186	)		(46	)		n/m		Income (loss) from continuing operations		(3	)		249			n/m
									Discontinued Operations:
	(1	)		—			n/m		Net (loss) gain from operations, net of tax		(2	)		5			n/m
	80			124			(35.5	)	Net (loss) gain on dispositions, net of tax		76			75			1.3
	(107	)		78			n/m		Net (loss) income		71			329			(78.4	)
	—			1			n/m		Net (income) loss attributable to noncontrolling interests		2			—			n/m
$	(107	)	$	79			n/m		Net (loss) income attributable to Starwood	$	73		$	329			(77.8	)
									Earnings (Loss) Per Share — Basic
$	(1.03	)	$	(0.25	)		n/m		Continuing operations	$	0.00		$	1.37			n/m
	0.44			0.69			(36.2	)	Discontinued operations		0.41			0.44			(6.8	)
$	(0.59	)	$	0.44			n/m		Net (loss) income	$	0.41		$	1.81			(77.3	)
									Earnings (Loss) Per Share — Diluted
$	(1.03	)	$	(0.25	)		n/m		Continuing operations	$	0.00		$	1.34			n/m
	0.44			0.69			(36.2	)	Discontinued operations		0.41			0.43			(4.7	)
$	(0.59	)	$	0.44			n/m		Net (loss) income	$	0.41		$	1.77			(76.8	)
									Amounts attributable to Starwood’s Common Shareholders
	(186	)		(45	)		n/m		(Loss) income from continuing operations		(1	)		249			n/m
	79			124			(36.3	)	Discontinued operations		74			80			(7.5	)
	(107	)		79			n/m		Net (loss) income		73			329			(77.8	)
	180			178					Weighted average number of Shares		180			181
	180			178					Weighted average number of Shares assuming dilution		180			185

(a)	The Company includes in revenues the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin and includes in costs and expenses these reimbursed costs. These costs relate primarily to payroll costs at managed properties where the Company is the employer.
n/m = not meaningful

-13-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

CONSOLIDATED BALANCE SHEETS
(in millions, except share data)

	December 31,			December 31,
	2009			2008
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	87		$	389
Restricted cash		47			96
Accounts receivable, net of allowance for doubtful accounts of $54 and $49		447			552
Inventories		783			986
Prepaid expenses and other		127			143
Total current assets		1,491			2,166
Investments		344			372
Plant, property and equipment, net		3,350			3,347
Assets held for sale		71			336
Goodwill and intangible assets, net		2,063			2,161
Deferred tax assets		982			639
Other assets(a)		460			682
	$	8,761		$	9,703
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt(b)	$	5		$	506
Accounts payable		139			171
Accrued expenses		1,212			1,274
Accrued salaries, wages and benefits		303			346
Accrued taxes and other		368			391
Total current liabilities		2,027			2,688
Long-term debt(b)		2,955			3,502
Deferred income taxes		31			26
Other liabilities		1,903			1,843
		6,916			8,059
Commitments and contingencies
Stockholders’ equity:
Corporation common stock; $0.01 par value; authorized 1,000,000,000 shares; outstanding 186,785,068 and 182,827,483 shares at December 31, 2009 and December 31, 2008, respectively		2			2
Additional paid-in capital		552			493
Accumulated other comprehensive loss		(283	)		(391	)
Retained earnings		1,553			1,517
Total Starwood stockholders’ equity		1,824			1,621
Noncontrolling interest		21			23
Total equity		1,845			1,644
	$	8,761		$	9,703

(a)	Includes restricted cash of $7 million and $6 million at December 31, 2009 and December 31, 2008, respectively.
(b)	Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $581 million and $642 million at December 31, 2009 and December 31, 2008, respectively.

-14-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations — Historical Data
(in millions)

Three Months Ended										Year Ended
December 31,										December 31,
						%										%
2009			2008			Variance				2009			2008			Variance
									Reconciliation of Net Income to EBITDA and Adjusted EBITDA
$	(107	)	$	79			n/m		Net (loss) income	$	73		$	329			(77.8	)
	75			64			17.2		Interest expense(a)		249			233			6.9
	(169	)		(24	)		n/m		Income tax (benefit) expense(b)		(330	)		131			n/m
	80			83			(3.6	)	Depreciation(c)		317			321			(1.2	)
	12			6			n/m		Amortization(d)		38			34			11.8
	(109	)		208			n/m		EBITDA		347			1,048			(66.9	)
	42			86			(51.2	)	Loss on asset dispositions and impairments, net		91			98			(7.1	)
	(58	)		(130	)		55.4		Discontinued operations net gain on dispositions(e)		(41	)		(130	)		68.5
	355			109			n/m		Restructuring, goodwill impairment and other special charges, net		379			141			n/m
	17			—			n/m		Cost of sales price discount adjustments		17			—			n/m
$	247		$	273			(9.5	)	Adjusted EBITDA	$	793		$	1,157			(31.5	)

(a)	Includes $3 million and $7 million of interest expense related to unconsolidated joint ventures for the three months ended December 31, 2009 and 2008, respectively, and $19 million and $23 million for the year ended December 31, 2009 and 2008, respectively.
(b)	Includes $(22) million and $6 million of tax (benefit) expense recorded in discontinued operations net gain on dispositions for the three months ended December 31, 2009 and 2008, respectively, and $(35) million and $55 million for the year ended December 31, 2009 and 2008, respectively. Also includes $(1) million and $0 million of tax (benefit) expense recorded in discontinued operations for the three months ended December 31, 2009 and 2008, respectively, and $(2) million and $4 million for the year ended December 31, 2009 and 2008, respectively.
(c)	Includes $11 million and $8 million of Starwood’s share of depreciation expense of unconsolidated joint ventures for the three months ended December 31, 2009 and 2008, respectively, and $35 million and $30 million for the year ended December 31, 2009 and 2008, respectively. Includes $1 million and $3 million of depreciation expense in discontinued operations for the three months ended December 31, 2009 and 2008, respectively, and $8 million and $10 million for the year ended December 31, 2009 and 2008, respectively.
(d)	Includes $1 million and $0 million of Starwood’s share of amortization expense of unconsolidated joint ventures for the three months ended December 31, 2009 and 2008, respectively, and $2 million and $2 million for the year ended December 31, 2009 and 2008, respectively. Includes $1 million and $0 million of amortization expense in discontinued operations for the three months ended December 31, 2009 and 2008, respectively, and $1 million and $0 million for the year ended December 31, 2009 and 2008, respectively.
(e)	Excludes the taxes, depreciation and amortization added back as noted in (b), (c) and (d) above.

-15-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations — Future Performance
(In millions, except per share data)

Low Case

Three Months Ended				Year Ended
March 31, 2010				December 31, 2010
$	(8	)	Net (loss) income	$	120
	63		Interest expense		262
	(3	)	Income tax expense (benefit)		33
	83		Depreciation and amortization		335
	135		EBITDA		750
	—		Loss on asset disposition and impairments, net		—
	—		Restructuring, goodwill impairment and other special charges, net		—
$	135		Adjusted EBITDA	$	750

Three Months Ended				Year Ended
March 31, 2010				December 31, 2010
$	(8	)	Income (loss) from continuing operations before special items	$	120
$	(0.04	)	EPS (loss per share) before special items	$	0.63
			Special Items
	—		Restructuring, goodwill impairment and other special charges, net		—
	—		Loss on asset dispositions and impairments, net		—
	—		Total special items — pre-tax		—
	—		Income tax benefit on special items		—
	—		Total special items — after-tax		—
$	(8	)	Income (loss) from continuing operations	$	120
$	(0.04	)	EPS (loss per share) including special items	$	0.63

High Case

Three Months Ended				Year Ended
March 31, 2010				December 31, 2010
$	—		Net income	$	120
	63		Interest expense		262
	(1	)	Income tax expense (benefit)		33
	83		Depreciation and amortization		335
	145		EBITDA		750
	—		Loss on asset disposition and impairments, net		—
	—		Restructuring, goodwill impairment and other special charges, net		—
$	145		Adjusted EBITDA	$	750

Three Months Ended			Year Ended
March 31, 2010			December 31, 2010
$	—	Income from continuing operations before special items	$	120
$	0.00	EPS before special items	$	0.63
		Special Items
	—	Restructuring, goodwill impairment and other special charges, net		—
	—	Loss on asset dispositions and impairments, net		—
	—	Total special items — pre-tax		—
	—	Income tax benefit on special items		—
	—	Total special items — after-tax		—
$	—	Income from continuing operations	$	120
$	0.00	EPS including special items	$	0.63

-16-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations — Same Store Owned Hotel Revenue and Expenses
(In millions)

Three Months Ended										Year Ended
December 31,										December 31,
						%			Same-Store Owned Hotels(1)							%
2009			2008			Variance			Worldwide	2009			2008			Variance
									Revenue
$	407		$	447			(8.9	)	Same-Store Owned Hotels	$	1,386		$	1,824			(24.0	)
	11			45			(75.6	)	Hotels Sold or Closed in 2009 and 2008		74			255			(71.0	)
	21			11			90.9		Hotels Without Comparable Results		154			171			(9.9	)
	(9	)		(10	)		10.0		Other ancillary hotel operations(2)		(30	)		(38	)		21.1
$	430		$	493			(12.8	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	1,584		$	2,212			(28.4	)
									Costs and Expenses
$	317		$	339			6.5		Same-Store Owned Hotels	$	1,136		$	1,360			16.5
	9			39			76.9		Hotels Sold or Closed in 2009 and 2008		65			214			69.6
	24			13			(84.6	)	Hotels Without Comparable Results		141			141			—
	(7	)		(7	)		—		Other ancillary hotel operations(2)		(27	)		(27	)		—
$	343		$	384			10.7		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	1,315		$	1,688			22.1

Three Months Ended										Year Ended
December 31,										December 31,
						%			Same-Store Owned Hotels							%
2009			2008			Variance			North America	2009			2008			Variance
									Revenue
$	267		$	299			(10.7	)	Same-Store Owned Hotels	$	899		$	1,176			(23.6	)
	—			20			n/m		Hotels Sold or Closed in 2009 and 2008		34			103			(67.0	)
	9			8			12.5		Hotels Without Comparable Results		122			148			(17.6	)
	(10	)		(11	)		9.1		Other ancillary hotel operations(2)		(31	)		(47	)		34.0
$	266		$	316			(15.8	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	1,024		$	1,380			(25.8	)
									Costs and Expenses
$	218		$	232			6.0		Same-Store Owned Hotels	$	769		$	897			14.3
	—			17			n/m		Hotels Sold or Closed in 2009 and 2008		28			79			64.6
	9			9			—		Hotels Without Comparable Results		103			120			14.2
	(8	)		(8	)		—		Other ancillary hotel operations(2)		(29	)		(34	)		(14.7	)
$	219		$	250			12.4		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	871		$	1,062			18.0

Three Months Ended								Year Ended
December 31,								December 31,
				%			Same-Store Owned Hotels					%
2009		2008		Variance			International	2009		2008		Variance
							Revenue
$	140	$	148		(5.4	)	Same-Store Owned Hotels	$	487	$	648		(24.8	)
	11		25		(56.0	)	Hotels Sold or Closed in 2009 and 2008		40		152		(73.7	)
	12		3		n/m		Hotels Without Comparable Results		32		23		39.1
	1		1		—		Other ancillary hotel operations(2)		1		9		(88.9	)
$	164	$	177		(7.3	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	560	$	832		(32.7	)
							Costs and Expenses
$	99	$	107		7.5		Same-Store Owned Hotels	$	367	$	463		20.7
	9		22		59.1		Hotels Sold or Closed in 2009 and 2008		37		135		72.6
	15		4		n/m		Hotels Without Comparable Results		38		21		(81.0	)
	1		1		—		Other ancillary hotel operations(2)		2		7		71.4
$	124	$	134		7.5		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	444	$	626		29.1

(1)	Same-Store Owned Hotel Results exclude 11 and 15 hotels sold or closed in 2009 and 2008 for the three months and twelve months, respectively and 4 and 10 hotels without comparable results for the three months and twelve months, respectively.
(2)	Other ancillary hotel operations are offset by revenue and expenses that were reclassified to discontinued operations for two hotels which are in the process of being sold.

-17-

Starwood Hotels & Resorts Worldwide, Inc.
Systemwide⁽¹⁾Statistics — Same Store
For the Three Months Ended December 31,
UNAUDITED

	Systemwide — Worldwide									Systemwide — North America									Systemwide — International
	2009			2008			Var.			2009			2008			Var.			2009			2008			Var.
TOTAL HOTELS
REVPAR ($)		101.55			109.43			-7.2	%		91.18			101.37			-10.1	%		115.92			120.59			-3.9	%
ADR ($)		164.02			178.86			-8.3	%		151.88			168.94			-10.1	%		179.70			191.97			-6.4	%
Occupancy (%)		61.9	%		61.2	%		0.7			60.0	%		60.0	%		0.0			64.5	%		62.8	%		1.7
SHERATON
REVPAR ($)		88.69			95.94			-7.6	%		77.65			86.93			-10.7	%		103.22			107.80			-4.2	%
ADR ($)		146.41			158.57			-7.7	%		133.54			147.83			-9.7	%		161.86			171.83			-5.8	%
Occupancy (%)		60.6	%		60.5	%		0.1			58.1	%		58.8	%		-0.7			63.8	%		62.7	%		1.1
WESTIN
REVPAR ($)		108.75			117.18			-7.2	%		100.63			111.75			-10.0	%		131.97			132.71			-0.6	%
ADR ($)		172.07			187.94			-8.4	%		161.92			181.53			-10.8	%		199.32			205.42			-3.0	%
Occupancy (%)		63.2	%		62.4	%		0.8			62.1	%		61.6	%		0.5			66.2	%		64.6	%		1.6
ST. REGIS/LUXURY COLLECTION
REVPAR ($)		172.83			180.83			-4.4	%		188.60			212.30			-11.2	%		164.50			164.19			0.2	%
ADR ($)		298.56			332.47			-10.2	%		324.68			372.50			-12.8	%		284.71			309.73			-8.1	%
Occupancy (%)		57.9	%		54.4	%		3.5			58.1	%		57.0	%		1.1			57.8	%		53.0	%		4.8
LE MERIDIEN
REVPAR ($)		131.30			144.08			-8.9	%		190.58			212.60			-10.4	%		125.45			137.34			-8.7	%
ADR ($)		195.87			218.05			-10.2	%		256.69			290.29			-11.6	%		189.15			210.09			-10.0	%
Occupancy (%)		67.0	%		66.1	%		0.9			74.2	%		73.2	%		1.0			66.3	%		65.4	%		0.9
W
REVPAR ($)		174.56			178.76			-2.3	%		170.78			180.80			-5.5	%		196.32			167.00			17.6	%
ADR ($)		247.15			293.58			-15.8	%		241.36			288.72			-16.4	%		280.95			328.06			-14.4	%
Occupancy (%)		70.6	%		60.9	%		9.7			70.8	%		62.6	%		8.2			69.9	%		50.9	%		19.0
FOUR POINTS
REVPAR ($)		64.51			70.70			-8.8	%		56.47			64.49			-12.4	%		82.55			84.59			-2.4	%
ADR ($)		106.34			114.93			-7.5	%		97.74			106.41			-8.1	%		122.96			133.08			-7.6	%
Occupancy (%)		60.7	%		61.5	%		-0.8			57.8	%		60.6	%		-2.8			67.1	%		63.6	%		3.5

(1) Includes same store owned, leased, managed, and franchised hotels

-18-

Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results — Same Store
For the Three Months Ended December 31,
UNAUDITED

	Systemwide(1)									Company Operated(2)
	2009			2008			Var.			2009			2008			Var.
TOTAL WORLDWIDE
REVPAR ($)		101.55			109.43			-7.2	%		116.86			125.36			-6.8	%
ADR ($)		164.02			178.86			-8.3	%		182.27			199.39			-8.6	%
Occupancy (%)		61.9	%		61.2	%		0.7			64.1	%		62.9	%		1.2
NORTH AMERICA
REVPAR ($)		91.18			101.37			-10.1	%		113.26			125.66			-9.9	%
ADR ($)		151.88			168.94			-10.1	%		178.38			199.93			-10.8	%
Occupancy (%)		60.0	%		60.0	%		0.0			63.5	%		62.9	%		0.6
EUROPE
REVPAR ($)		127.57			129.92			-1.8	%		140.66			141.55			-0.6	%
ADR ($)		211.51			213.19			-0.8	%		228.91			227.55			0.6	%
Occupancy (%)		60.3	%		60.9	%		-0.6			61.5	%		62.2	%		-0.7
AFRICA & MIDDLE EAST
REVPAR ($)		141.15			160.13			-11.9	%		142.52			163.42			-12.8	%
ADR ($)		197.44			225.38			-12.4	%		199.33			229.38			-13.1	%
Occupancy (%)		71.5	%		71.0	%		0.5			71.5	%		71.2	%		0.3
ASIA PACIFIC
REVPAR ($)		104.96			103.85			1.1	%		102.08			99.74			2.3	%
ADR ($)		158.21			169.27			-6.5	%		156.50			167.48			-6.6	%
Occupancy (%)		66.3	%		61.4	%		4.9			65.2	%		59.6	%		5.6
LATIN AMERICA
REVPAR ($)		80.28			90.91			-11.7	%		83.40			96.56			-13.6	%
ADR ($)		139.20			150.97			-7.8	%		148.28			160.48			-7.6	%
Occupancy (%)		57.7	%		60.2	%		-2.5			56.2	%		60.2	%		-4.0

(1)	Includes same store owned, leased, managed, and franchised hotels
(2)	Includes same store owned, leased, and managed hotels

-19-

Starwood Hotels & Resorts Worldwide, Inc.
Owned Hotel Results — Same Store⁽¹⁾
For the Three Months Ended December 31,
UNAUDITED

	WORLDWIDE									NORTH AMERICA									INTERNATIONAL
	2009			2008			Var.			2009			2008			Var.			2009			2008			Var.
	59 Hotels									33 Hotels									26 Hotels
TOTAL HOTELS
REVPAR ($)		134.42			146.24			-8.1	%		137.20			151.91			-9.7	%		129.06			135.32			-4.6	%
ADR ($)		208.67			226.80			-8.0	%		205.08			231.10			-11.3	%		216.43			218.02			-0.7	%
Occupancy (%)		64.4	%		64.5	%		-0.1			66.9	%		65.7	%		1.2			59.6	%		62.1	%		-2.5
Total Revenue		407,169			446,895			-8.9	%		266,636			299,431			-11.0	%		140,533			147,464			-4.7	%
Total Expenses		317,212			339,039			-6.4	%		217,640			231,988			-6.2	%		99,572			107,051			-7.0	%

	53 Hotels							27 Hotels							26 Hotels
BRANDED HOTELS
REVPAR ($)		139.28		151.27		-7.9	%		145.48		160.96		-9.6	%		129.06		135.32		-4.6	%
ADR ($)		212.07		232.97		-9.0	%		209.79		241.42		-13.1	%		216.43		218.02		-0.7	%
Occupancy (%)		65.7	%	64.9	%	0.8			69.3	%	66.7	%	2.6			59.6	%	62.1	%	-2.5
Total Revenue		380,053		416,698		-8.8	%		239,520		269,234		-11.0	%		140,811		148,265		-5.0	%
Total Expenses		292,631		312,385		-6.3	%		192,892		204,479		-5.7	%		99,739		107,906		-7.6	%

(1) Hotel Results exclude 11 hotels sold or closed and 4 hotels without comparable results during 2008 & 2009

-20-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Three Months Ended December 31,
UNAUDITED ($ millions)

	Worldwide
	2009		2008		$ Variance		% Variance
Management Fees:
Base Fees		65		70		-5		-7.1	%
Incentive Fees		39		48		-9		-18.8	%
Total Management Fees		104		118		-14		-11.9	%
Franchise Fees		35		36		-1		-2.8	%
Total Management & Franchise Fees		139		154		-15		-9.7	%
Other Management & Franchise Revenues (1)		42		26		16		61.5	%
Total Management & Franchise Revenues		181		180		1		0.6	%
Other		4		11		-7		-63.6	%
Management Fees, Franchise Fees & Other Income		185		191		-6		-3.1	%

(1) Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $21 million in 2009 and $20 million in 2008 resulting from the sales of hotels subject to long-term management contracts and termination fees.

-21-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Three Months Ended December 31,
UNAUDITED ($ millions)

	2009			2008			% Variance
Originated Sales Revenues (1) — Vacation Ownership Sales		82			92			(10.9	%)
Other Sales and Services Revenues(2)		69			51			35.3	%
Deferred Revenues — Percentage of Completion		0			18			n/m
Deferred Revenues — Other(3)		(17	)		(27	)		37.0	%
Vacation Ownership Sales and Services Revenues		134			134			0.0	%
Residential Sales and Services Revenues		2			2			0.0	%
Total Vacation Ownership & Residential Sales and Services Revenues		136			136			0.0	%
Originated Sales Expenses (4) — Vacation Ownership Sales		69			51			(35.3	%)
Other Expenses(5)		42			46			8.7	%
Deferred Expenses — Percentage of Completion		0			9			n/m
Deferred Expenses — Other		2			3			33.3	%
Vacation Ownership Expenses		113			109			(3.7	%)
Residential Expenses		3			2			(50.0	%)
Total Vacation Ownership & Residential Expenses		116			111			(4.5	%)

(1)	Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes
(2)	Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues
(3)	Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 976 or ASC 978 and provision for loan loss
(4)	Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes
(5)	Includes resort, general and administrative, and other miscellaneous expenses
Note:	Deferred revenue is calculated based on the Percentage of Completion (“POC”) of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978.

n/m = not meaningful

-22-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Top 30 Owned, Leased and Consolidated Joint Venture Hotels
For the Year Ended December 31, 2009

US Hotels	Location	Rooms
St. Regis Aspen	Aspen, CO		179
St. Regis New York	New York, NY		229
The Phoenician	Scottsdale, AZ		643
W Chicago — City Center	Chicago, IL		369
W Chicago Lakeshore	Chicago, IL		520
W Los Angeles Westwood	Los Angeles, CA		258
W New Orleans	New Orleans, LA		423
The Westin Gaslamp Quarter, San Diego	San Diego, CA		450
Westin Maui Resort & Spa	Lahaina, HI		759
Westin Peachtree Plaza	Atlanta, GA		1,068
Westin San Francisco Airport	San Francisco, CA		397
Sheraton Kauai Resort	Koloa, HI		394

International Hotels	Location	Rooms
St. Regis Grand Hotel, Rome	Rome, Italy		161
Hotel Alfonso XIII	Seville, Spain		151
Hotel Gritti Palace	Venice, Italy		91
Park Tower, Buenos Aires	Buenos Aires, Argentina		181
The Westin Excelsior, Florence	Florence, Italy		171
The Westin Excelsior, Rome	Rome, Italy		316
The Westin Resort & Spa, Cancun	Cancun, Mexico		379
The Westin Resort & Spa, Los Cabos	San Jose del Cabo, Mexico		243
The Westin Resort & Spa, Puerto Vallarta	Puerto Vallarta, Mexico		279
Le Centre Sheraton Hotel	Montreal, Canada		825
Sheraton Rio Hotel & Towers	Rio de Janeiro, Brazil		559
Sheraton Buenos Aires Hotel & Convention Center	Buenos Aires, Argentina		739
Sheraton Centre Toronto Hotel	Toronto, Canada		1,377
Sheraton Gateway Hotel in Toronto International Hotel	Toronto, Canada		474
Sheraton Maria Isabel Hotel & Towers	Mexico City, Mexico		755
Sheraton On The Park	Sydney, Australia		558
Sheraton Paris Airport Hotel Charles de Gaulle	Roissy Aerogare, France		252
The Park Lane Hotel	London, England		305

Top 30 hotels represent
approximately 88% of owned, leased and consolidated joint
venture earnings before depreciation

-23-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Top 20 Worldwide Markets — Owned
For the Twelve Months Ended December 31, 2009
UNAUDITED

	% of 2009
US Markets	Total Earnings1
New York, NY		9	%
Hawaii		8	%
Phoenix, AZ		5	%
Chicago, IL		4	%
Atlanta, GA		4	%
San Diego, CA		4	%
Boston, MA		3	%
Colorado Area		3	%
Los Angeles-Long Beach, CA		2	%
New Orleans, LA		1	%
Total Top 10 US Markets		43	%

	% of 2009
International Markets	Total Earnings1
Canada		12	%
Mexico		10	%
Italy		10	%
Australia		8	%
Argentina		5	%
United Kingdom		4	%
Brazil		3	%
France		2	%
Fiji		2	%
Peru		1	%
Total Top 10 International Markets		57	%

¹  Represents earnings before depreciation for owned, leased and consolidated joint venture hotels

-24-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Total Management & Franchise Fees by Geographic Region
For the Year Ended December 31, 2009
UNAUDITED

	Management			Franchise			Total Management
Geographical Region	Fees			Fees			and Franchise Fees
United States		34	%		64	%		42	%
Europe		17	%		13	%		16	%
Asia Pacific		22	%		9	%		18	%
Middle East and Africa		20	%		1	%		15	%
Americas (Latin America & Canada)		7	%		13	%		9	%
Total		100	%		100	%		100	%

-25-

Starwood Hotels & Resorts Worldwide, Inc.
Systemwide⁽¹⁾ Statistics — Same Store
For the Twelve Months Ended December 31,
UNAUDITED

	Systemwide — Worldwide									Systemwide — North America									Systemwide — International
	2009			2008			Var.			2009			2008			Var.			2009			2008			Var.
TOTAL HOTELS
REVPAR ($)		99.15			125.01			-20.7	%		94.36			118.73			-20.5	%		105.62			133.49			-20.9	%
ADR ($)		158.25			185.24			-14.6	%		147.96			172.92			-14.4	%		172.74			202.55			-14.7	%
Occupancy (%)		62.7	%		67.5	%		-4.8			63.8	%		68.7	%		-4.9			61.1	%		65.9	%		-4.8
SHERATON
REVPAR ($)		86.71			108.15			-19.8	%		81.05			102.51			-20.9	%		93.70			115.12			-18.6	%
ADR ($)		141.19			162.15			-12.9	%		129.57			150.37			-13.8	%		156.13			177.43			-12.0	%
Occupancy (%)		61.4	%		66.7	%		-5.3			62.6	%		68.2	%		-5.6			60.0	%		64.9	%		-4.9
WESTIN
REVPAR ($)		107.79			132.64			-18.7	%		106.06			129.68			-18.2	%		112.90			141.42			-20.2	%
ADR ($)		166.40			193.23			-13.9	%		162.10			187.45			-13.5	%		179.63			210.91			-14.8	%
Occupancy (%)		64.8	%		68.6	%		-3.8			65.4	%		69.2	%		-3.8			62.9	%		67.1	%		-4.2
ST. REGIS/LUXURY COLLECTION
REVPAR ($)		180.95			247.90			-27.0	%		182.63			249.56			-26.8	%		180.07			247.02			-27.1	%
ADR ($)		316.63			394.61			-19.8	%		317.71			375.46			-15.4	%		316.06			405.61			-22.1	%
Occupancy (%)		57.1	%		62.8	%		-5.7			57.5	%		66.5	%		-9.0			57.0	%		60.9	%		-3.9
LE MERIDIEN
REVPAR ($)		119.05			155.27			-23.3	%		164.31			219.38			-25.1	%		114.23			148.46			-23.1	%
ADR ($)		184.80			223.20			-17.2	%		224.61			293.59			-23.5	%		179.91			215.11			-16.4	%
Occupancy (%)		64.4	%		69.6	%		-5.2			73.2	%		74.7	%		-1.5			63.5	%		69.0	%		-5.5
W
REVPAR ($)		162.54			214.28			-24.1	%		161.25			213.69			-24.5	%		173.98			219.48			-20.7	%
ADR ($)		234.88			299.32			-21.5	%		228.26			293.13			-22.1	%		308.18			365.98			-15.8	%
Occupancy (%)		69.2	%		71.6	%		-2.4			70.6	%		72.9	%		-2.3			56.5	%		60.0	%		-3.5
FOUR POINTS
REVPAR ($)		64.56			80.14			-19.4	%		60.52			75.87			-20.2	%		74.73			90.86			-17.8	%
ADR ($)		102.72			118.30			-13.2	%		97.02			111.76			-13.2	%		116.72			134.85			-13.4	%
Occupancy (%)		62.9	%		67.7	%		-4.8			62.4	%		67.9	%		-5.5			64.0	%		67.4	%		-3.4

(1) Includes same store owned, leased, managed, and franchised hotels

-26-

Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results — Same Store
For the Twelve Months Ended December 31,
UNAUDITED

	Systemwide(1)									Company Operated(2)
	2009			2008			Var.			2009			2008			Var.
TOTAL WORLDWIDE
REVPAR ($)		99.15			125.01			-20.7	%		111.55			141.10			-20.9	%
ADR ($)		158.25			185.24			-14.6	%		175.44			205.27			-14.5	%
Occupancy (%)		62.7	%		67.5	%		-4.8			63.6	%		68.7	%		-5.1
NORTH AMERICA
REVPAR ($)		94.36			118.73			-20.5	%		114.98			146.59			-21.6	%
ADR ($)		147.96			172.92			-14.4	%		172.93			204.18			-15.3	%
Occupancy (%)		63.8	%		68.7	%		-4.9			66.5	%		71.8	%		-5.3
EUROPE
REVPAR ($)		126.66			165.94			-23.7	%		138.09			179.69			-23.2	%
ADR ($)		207.56			252.17			-17.7	%		221.55			266.62			-16.9	%
Occupancy (%)		61.0	%		65.8	%		-4.8			62.3	%		67.4	%		-5.1
AFRICA & MIDDLE EAST
REVPAR ($)		122.10			144.93			-15.8	%		123.92			147.59			-16.0	%
ADR ($)		184.20			206.07			-10.6	%		186.16			208.51			-10.7	%
Occupancy (%)		66.3	%		70.3	%		-4.0			66.6	%		70.8	%		-4.2
ASIA PACIFIC
REVPAR ($)		90.87			113.41			-19.9	%		87.87			108.78			-19.2	%
ADR ($)		149.12			176.50			-15.5	%		147.02			171.95			-14.5	%
Occupancy (%)		60.9	%		64.3	%		-3.4			59.8	%		63.3	%		-3.5
LATIN AMERICA
REVPAR ($)		71.97			95.44			-24.6	%		73.59			98.35			-25.2	%
ADR ($)		135.11			146.71			-7.9	%		144.12			154.35			-6.6	%
Occupancy (%)		53.3	%		65.0	%		-11.7			51.1	%		63.7	%		-12.6

(1)	Includes same store owned, leased, managed, and franchised hotels
(2)	Includes same store owned, leased, and managed hotels

-27-

Starwood Hotels & Resorts Worldwide, Inc.
Owned Hotel Results — Same Store⁽¹⁾
For the Twelve Months Ended December 31,
UNAUDITED

	WORLDWIDE									NORTH AMERICA									INTERNATIONAL
	2009			2008			Var.			2009			2008			Var.			2009			2008			Var.
	53 Hotels									28 Hotels									25 Hotels
TOTAL HOTELS
REVPAR ($)		128.95			171.09			-24.6	%		134.96			178.61			-24.4	%		118.80			158.40			-25.0	%
ADR ($)		199.22			240.23			-17.1	%		194.33			241.32			-19.5	%		209.31			238.17			-12.1	%
Occupancy (%)		64.7	%		71.2	%		-6.5			69.4	%		74.0	%		-4.6			56.8	%		66.5	%		-9.7
Total Revenue		1,385,856			1,823,487			-24.0	%		898,703			1,175,988			-23.6	%		487,153			647,499			-24.8	%
Total Expenses		1,136,440			1,360,452			-16.5	%		768,859			897,102			-14.3	%		367,581			463,350			-20.7	%
	53 Hotels									28 Hotels									25 Hotels
BRANDED HOTELS
REVPAR ($)		133.39			178.46			-25.3	%		143.77			192.72			-25.4	%		118.80			158.40			-25.0	%
ADR ($)		203.62			247.75			-17.8	%		200.42			253.71			-21.0	%		209.31			238.17			-12.1	%
Occupancy (%)		65.5	%		72.0	%		-6.5			71.7	%		76.0	%		-4.3			56.8	%		66.5	%		-9.7
Total Revenue		1,274,941			1,695,554			-24.8	%		787,788			1,048,055			-24.8	%		487,153			647,499			-24.8	%
Total Expenses		1,033,970			1,247,130			-17.1	%		666,389			783,780			-15.0	%		367,581			463,350			-20.7	%

(1) Hotel Results exclude 15 hotels sold or closed and 10 hotels without comparable results during 2008 & 2009

-28-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Twelve Months Ended December 31,
UNAUDITED ($ millions)

	Worldwide
	2009		2008		$ Variance		% Variance
Management Fees:
Base Fees		241		287		-46		-16.0	%
Incentive Fees		115		169		-54		-32.0	%
Total Management Fees		356		456		-100		-21.9	%
Franchise Fees		138		164		-26		-15.9	%
Total Management & Franchise Fees		494		620		-126		-20.3	%
Other Management & Franchise Revenues (1)		136		97		39		40.2	%
Total Management & Franchise Revenues		630		717		-87		-12.1	%
Other		28		34		-6		-17.6	%
Management Fees, Franchise Fees & Other Income		658		751		-93		-12.4	%

(1) Other Management & Franchise Revenues includes the amortization of deferred gains of approximately $82 million in 2009 and $83 million in 2008 resulting from the sales of hotels subject to long-term management contracts and termination fees.

-29-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Twelve Months Ended December 31,
UNAUDITED ($ millions)

	2009			2008			% Variance
Originated Sales Revenues (1) — Vacation Ownership Sales		321			526			(39.0	%)
Other Sales and Services Revenues(2)		219			207			5.8	%
Deferred Revenues — Percentage of Completion		23			(9	)		n/m
Deferred Revenues — Other(3)		(46	)		(24	)		(91.7	%)
Vacation Ownership Sales and Services Revenues		517			700			(26.1	%)
Residential Sales and Services Revenues		6			49			(87.8	%)
Total Vacation Ownership & Residential Sales and Services Revenues		523			749			(30.2	%)
Originated Sales Expenses (4) — Vacation Ownership Sales		225			356			36.8	%
Other Expenses(5)		165			201			17.9	%
Deferred Expenses — Percentage of Completion		12			(5	)		n/m
Deferred Expenses — Other		15			24			37.5	%
Vacation Ownership Expenses		417			576			27.6	%
Residential Expenses		5			7			28.6	%
Total Vacation Ownership & Residential Expenses		422			583			27.6	%

(1)	Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes
(2)	Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues
(3)	Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 976 or ASC 978 and provision for loan loss
(4)	Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes
(5)	Includes resort, general and administrative, and other miscellaneous expenses
Note:	Deferred revenue is calculated based on the Percentage of Completion (“POC”) of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978.

n/m = not meaningful

-30-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels without Comparable Results & Other Selected Items
As of December 31, 2009
UNAUDITED ($ millions)

Properties without comparable results in 2009:

Property	Location
Sheraton Steamboat Resort & Conference Center	Steamboat Springs, CO
Westin St. John Resort & Villas	St. John, Virgin Islands
Westin Peachtree	Atlanta, GA
Sheraton Fiji Resort	Nadi, Fiji
element Lexington	Lexington, MA
aloft Lexington	Lexington, MA
aloft Philadelphia Airport	Philadelphia, PA
W Chicago — City Center	Chicago, IL
Grand Hotel, Florence	Florence, Italy
W Barcelona	Barcelona, Spain

Properties sold or closed in 2009 and 2008:

Property	Location
Caesar’s Brookdale	Scotrun, PA
Sheraton Hamilton	Hamilton, Ontario
Days Inn Town Center	Seattle, WA
Sixth Avenue Inn	Seattle, WA
Hotel Des Bains	Venice Lido, Italy
The Westin Excelsior	Venice Lido, Italy
Hotel Villa Cipriani	Asolo, Italy
The Westin Turnberry	Ayreshire, Scotland
Sheraton Brussels Hotel & Towers	Brussels, Belgium
Sheraton Mencey Hotel	Santa Cruz de Tenerife, Spain
Sheraton Newton	Newton, MA
Minneapolis Gateway Hotel	Minneapolis, MN
Park Ridge Hotel & Conference Center at Valley Forge	King of Prussia, PA
W San Francisco	San Francisco, CA
Four Points by Sheraton Sydney Hotel	Sydney, Australia

Revenues and Expenses Associated with Assets Sold or Closed in 2009 and 2008 (1):

	Q1		Q2		Q3		Q4		Full Year
Hotels Sold or Closed in 2008:
2008
Revenues	$	10	$	25	$	35	$	6	$	76
Expenses (excluding depreciation)	$	16	$	23	$	23	$	6	$	68
Hotels Sold or Closed in 2009:
2009
Revenues	$	28	$	21	$	14	$	11	$	74
Expenses (excluding depreciation)	$	25	$	19	$	12	$	9	$	65
2008
Revenues	$	45	$	48	$	47	$	39	$	179
Expenses (excluding depreciation)	$	37	$	38	$	38	$	33	$	146

(1) Results consist of 7 hotels sold or closed in 2009 and 8 hotels sold or closed in 2008. These amounts are included in the revenues and expenses from owned, leased and consolidated joint venture hotels in 2009 and 2008

-31-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Capital Expenditures
For the Three and Twelve Months Ended December 31, 2009
UNAUDITED ($ millions)

	Q4			YTD
Maintenance Capital Expenditures:(1)
Owned, Leased and Consolidated Joint Venture Hotels		30			102
Corporate/IT		10			27
Subtotal		40			129
Vacation Ownership Capital Expenditures:(2)
Net capital expenditures for inventory (excluding St.Regis Bal Harbour)		(20	)		(2	)
Net capital expenditures for inventory — St.Regis Bal Harbour		24			109
Subtotal		4			107
Development Capital		28			107
Total Capital Expenditures		72			343

(1)	Maintenance capital expenditures include improvements, repairs and maintenance.
(2)	Represents gross inventory capital expenditures of $36 and $193 in the three and twelve months ended December 31, 2009, respectively, less cost of sales of $32 and $86 in the three and twelve months ended December 31, 2009, respectively.

-32-

Starwood Hotels & Resorts Worldwide, Inc.
2009 Divisional Hotel Inventory Summary by Ownership by Brand*
December 31, 2009

	NAD				EAME				LAD				ASIA				Total
	Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms
Owned
Sheraton		7		4,191		4		707		5		2,713		2		821		18		8,432
Westin		5		2,849		3		650		3		902		1		273		12		4,674
Four Points		2		327		—		—		—		—		—		—		2		327
W		8		2,770		1		473		—		—		—		—		9		3,243
Luxury Collection		1		643		7		828		1		180		—		—		9		1,651
St. Regis		3		668		1		161		—		—		—		—		4		829
Aloft		2		272		—		—		—		—		—		—		2		272
Element		1		123		—		—		—		—		—		—		1		123
Other		6		1,935		—		—		—		—		—		—		6		1,935
Total Owned		35		13,778		16		2,819		9		3,795		3		1,094		63		21,486
Managed & UJV
Sheraton		42		29,702		64		19,355		15		2,934		53		19,800		174		71,791
Westin		52		28,105		12		3,356		—		—		18		6,309		82		37,770
Four Points		1		171		9		1,641		4		517		10		3,555		24		5,884
W		18		5,655		2		579		2		433		3		722		25		7,389
Luxury Collection		6		1,838		12		2,002		7		250		1		186		26		4,276
St. Regis		7		1,450		1		95		2		309		4		1,009		14		2,863
Le Meridien		3		547		62		15,740		—		—		26		7,065		91		23,352
Aloft		—		—		1		280		—		—		1		186		2		466
Other		1		—		1		—		—		—		—		—		2		—
Total Managed & UJV		130		67,468		164		43,048		30		4,443		116		38,832		440		153,791
Franchised
Sheraton		150		44,511		27		6,502		8		2,040		15		6,135		200		59,188
Westin		56		18,087		6		2,655		2		396		7		1,939		71		23,077
Four Points		98		15,449		12		1,671		8		1,225		4		374		122		18,719
Luxury Collection		5		1,127		14		1,900		1		120		8		2,262		28		5,409
St. Regis		—		—		1		133		—		—		—		—		1		133
Le Meridien		6		1,811		4		1,340		2		324		2		554		14		4,029
Aloft		35		5,167		—		—		—		—		—		—		35		5,167
Element		5		639		—		—		—		—		—		—		5		639
Total Franchised		355		86,791		64		14,201		21		4,105		36		11,264		476		116,361
Systemwide
Sheraton		199		78,404		95		26,564		28		7,687		70		26,756		392		139,411
Westin		113		49,041		21		6,661		5		1,298		26		8,521		165		65,521
Four Points		101		15,947		21		3,312		12		1,742		14		3,929		148		24,930
W		26		8,425		3		1,052		2		433		3		722		34		10,632
Luxury Collection		12		3,608		33		4,730		9		550		9		2,448		63		11,336
St. Regis		10		2,118		3		389		2		309		4		1,009		19		3,825
Le Meridien		9		2,358		66		17,080		2		324		28		7,619		105		27,381
Aloft		37		5,439		1		280		—		—		1		186		39		5,905
Element		6		762		—		—		—		—		—		—		6		762
Other		7		1,935		1		—		—		—		—		—		8		1,935
Vacation Ownership		13		6,884		—		—		—		—		—		—		13		6,884
Total Systemwide		533		174,921		244		60,068		60		12,343		155		51,190		992		298,522

* Includes Vacation Ownership properties

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership Inventory Pipeline
As of December 31, 2009
UNAUDITED

	# Resorts						# of Units(1)
			In		In Active				Pre-sales/		Future		Total at
Brand	Total (2)		Operations		Sales		Completed(3)		Development(4)		Capacity(5),(6)		Buildout
Sheraton		7		7		6		2,988		91		712		3,791
Westin		9		8		9		1,447		115		21		1,583
St. Regis		2		2		—		63		—		—		63
The Luxury Collection		1		1		—		6		—		—		6
Unbranded		3		3		1		124		—		1		125
Total SVO, Inc.		22		21		16		4,628		206		734		5,568
Unconsolidated Joint Ventures (UJV’s)		1		1		1		198		—		—		198
Total including UJV’s		23		22		17		4,826		206		734		5,766
Total Intervals Including UJV’s(7)								250,952		10,712		38,168		299,832

(1)	Lockoff units are considered as one unit for this analysis.
(2)	Includes resorts in operation, active sales or future development.
(3)	Completed units include those units that have a certificate of occupancy.
(4)	Units in Pre-sales/Development are in various stages of development (including the permitting stage), most of which are currently being offered for sale to customers.
(5)	Based on owned land and average density in existing marketplaces
(6)	Future units indicated above include planned timeshare units on land owned by the Company or applicable UJV that have received all major governmental land use approvals for the development of timeshare. There can be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated.
(7)	Assumes 52 intervals per unit.

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