Starwood Hotel & Resorts Worldwide 8-K Starwood Reports Third Quarter

Exhibit 99.1

Investor Contact Stephen Pettibone 203-351-3500
Media Contact KC Kavanagh 866-478-2777	One StarPoint                          Stamford, CT 06902                         United States

STARWOOD REPORTS THIRD QUARTER

2013 RESULTS AND DECLARES

ANNUAL DIVIDEND OF $1.35 PER SHARE

STAMFORD, Conn. (October 24, 2013) – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported third quarter 2013 financial results.

Third Quarter 2013 Highlights

• Excluding special items, EPS from continuing operations was $0.71. Including special items, EPS from continuing operations was $0.81.

• Adjusted EBITDA was $301 million, which included $19 million of EBITDA from the St. Regis Bal Harbour residential project (“Bal Harbour”).

• Excluding special items, income from continuing operations was $137 million. Including special items, income from continuing operations was $157 million.

• Worldwide Systemwide REVPAR for Same-Store Hotels increased 4.7% in constant dollars (4.2% in actual dollars) compared to 2012. Systemwide REVPAR for Same-Store Hotels in North America increased 5.8% in constant dollars (5.4% in actual dollars).

• Management fees, franchise fees and other income increased 12.8% compared to 2012.

• Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 50 basis points compared to 2012.

• Worldwide REVPAR for Starwood Same-Store Owned Hotels increased 5.2% in constant dollars (4.5% in actual dollars) compared to 2012.

• Margins at Starwood Same-Store Owned Hotels Worldwide increased approximately 130 basis points compared to 2012.

• Earnings from Starwood’s vacation ownership and residential business increased approximately $7 million compared to 2012.

• During the quarter, the Company signed 36 hotel management and franchise contracts, representing approximately 7,800 rooms, and opened 15 hotels and resorts with approximately 3,700 rooms.

• Starwood’s Board of Directors has declared the Company’s annual cash dividend of $1.35 per share. The Board of Directors has also decided to pay dividends to stockholders on a quarterly basis commencing in 2014.

Third Quarter 2013 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the third quarter of 2013 of $0.81 compared to $0.75 in the third quarter of 2012. Excluding special items, EPS from continuing operations was $0.71 for the third quarter of 2013 compared to $0.58 in the third quarter of 2012. Special items in the third quarter of 2013, which totaled a benefit of $20 million (after tax), primarily related to a favorable adjustment to a legal reserve, tax benefits associated with a non-core asset sale and the reversal of a valuation allowance on deferred tax assets which are now deemed realizable. Special items in the third quarter of 2012, which totaled a benefit of $33 million (after-tax), primarily related to tax benefits from the sale of two hotels with high tax bases. Excluding special items, the effective income tax rate in the third quarter of 2013 was 31.3%, compared to 30.8% in the third quarter of 2012.

Income from continuing operations was $157 million in the third quarter of 2013, compared to $147 million in the third quarter of 2012. Excluding special items, income from continuing operations was $137 million in the third quarter of 2013 compared to $114 million in the third quarter of 2012.

Net income was $157 million and $0.81 per share in the third quarter of 2013, compared to $170 million and $0.87 per share in the third quarter of 2012. In addition to the $33 million of special items noted above, the 2012 results also included a gain of $23 million (net of tax) in discontinued operations, primarily related to the favorable settlement of certain liabilities associated with a former subsidiary of ITT Corporation, which the Company acquired in 1998.

Frits van Paasschen, CEO, said, “We delivered solid results in the face of an uncertain global economic environment. Globally, REVPAR grew by 4.7% in constant dollars, and our core management and franchise fees increased by 9.7%. In North America, where occupancies remained at all-time highs, REVPAR increased by 6.9% at our Company-Operated hotels. Our owned hotels in North America showed healthy margin increases fueled by 8.5% constant dollar REVPAR growth and ongoing cost controls.

“We remain bullish on the long-term trends of rising wealth and increasing demand for travel in fast growing economies, even in the face of slower growth in China, unrest in the Middle East, and economic challenges in Latin America.”

Nine Months Ended September 30, 2013 Earnings Summary

Income from continuing operations was $437 million in the nine months ended September 30, 2013 compared to $405 million in the same period in 2012. Excluding special items, income from continuing operations was $438 million in the nine months ended September 30, 2013 compared to $376 million in the same period in 2012.

Net income was $507 million and $2.61 per share in the nine months ended September 30, 2013 compared to $420 million and $2.14 per share in the same period in 2012. Net income in the nine months ended September 30, 2013 included a tax benefit of $70 million, in discontinued operations, as a result of the reversal of a reserve associated with an uncertain tax position related to a previous disposition. The applicable statute of limitation for this tax position lapsed during the first quarter of 2013.

Adjusted EBITDA was $949 million in the nine months ended September 30, 2013 compared to $895 million in the same period in 2012.

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Third Quarter 2013 Operating Results

Management and Franchise Revenues

Worldwide Systemwide REVPAR for Same-Store Hotels increased 4.7% in constant dollars (4.2% in actual dollars) compared to the third quarter of 2012. International Systemwide REVPAR for Same-Store Hotels increased 3.3% in constant dollars (2.7% in actual dollars).

Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by region:

	REVPAR
Region	Constant Dollars			Actual Dollars
Americas:
North America		5.8	%		5.4	%
Latin America		1.0	%		1.0	%
Asia Pacific:
Greater China		1.6	%		4.6	%
Rest of Asia		9.3	%		(1.4	)%
Europe, Africa & Middle East:
Europe		1.9	%		5.4	%
Africa & Middle East		0.6	%		(0.7	)%

Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by brand:

	REVPAR
Brand	Constant Dollars			Actual Dollars
St. Regis/Luxury Collection		7.3	%		8.5	%
W Hotels		5.8	%		5.7	%
Westin		5.3	%		4.4	%
Sheraton		3.7	%		2.5	%
Le Méridien		2.9	%		4.7	%
Four Points by Sheraton		3.3	%		3.0	%
Aloft		6.1	%		5.9	%

Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 50 basis points compared to 2012. International gross operating profit margins for Same-Store Company-Operated properties increased 20 basis points. North American Same-Store Company-Operated gross operating profit margins increased approximately 100 basis points, driven by REVPAR increases and cost controls.

Management fees, franchise fees and other income were $247 million, up $28 million, or 12.8% compared to the third quarter of 2012. Management fees increased 11.5% to $136 million and franchise fees increased 5.7% to $56 million. Other income included fees associated with the termination of certain management and franchise contracts during the quarter.

Development

During the third quarter of 2013, the Company signed 36 hotel management and franchise contracts, representing approximately 7,800 rooms, of which 29 are new builds and seven are conversions from other brands. At September 30, 2013, the Company had approximately 400 hotels in the active pipeline representing approximately 100,000 rooms.

During the third quarter of 2013, 15 new hotels and resorts (representing approximately 3,700 rooms) entered the system, including Sheraton Memphis Downtown Hotel (Tennessee, 600 rooms), The St. Regis Abu Dhabi (UAE, 268 rooms), Sheraton Moscow Sheremetyevo Airport Hotel (Russia, 342 rooms), Aloft Panama (312 rooms), and Palacio del Inka, a Luxury Collection Hotel, Cusco (Peru, 192 rooms). During the quarter, eight properties (representing approximately 1,400 rooms) were removed from the system.

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Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR at Starwood Same-Store Owned Hotels increased 5.2% in constant dollars (4.5% in actual dollars) when compared to 2012. REVPAR at Starwood Same-Store Owned Hotels in North America increased 8.5% in constant dollars (6.9% in actual dollars). Internationally, Starwood Same-Store Owned Hotel REVPAR increased 2.9% in constant dollars (2.9% in actual dollars).

Revenues at Starwood Same-Store Owned Hotels Worldwide increased 5.9% in constant dollars (5.0% in actual dollars) while costs and expenses increased 4.1% in constant dollars (3.2% in actual dollars) when compared to 2012. Margins at these hotels increased approximately 130 basis points compared to 2012.

Revenues at Starwood Same-Store Owned Hotels in North America increased 11.3% in constant dollars (9.6% in actual dollars) while costs and expenses increased 8.1% in constant dollars (6.7% in actual dollars) when compared to 2012. Margins at these hotels increased approximately 230 basis points.

Internationally, revenues at Starwood Same-Store Owned Hotels increased 2.6% in constant dollars (2.1% in actual dollars) while costs and expenses increased 1.1% in constant dollars (0.6% in actual dollars) when compared to 2012. Margins at these hotels increased approximately 110 basis points.

Revenues at owned, leased and consolidated joint venture hotels were $398 million, compared to $425 million in 2012. Expenses at owned, leased and consolidated joint venture hotels were $318 million compared to $348 million in 2012. Third quarter 2013 results were negatively impacted by asset sales completed since the third quarter of 2012.

Vacation Ownership

Total vacation ownership revenues increased 11.3% to $157 million in the third quarter of 2013, when compared to 2012, primarily due to increased revenues from resort operations, which included the transfer of the Westin St. John’s revenues from owned hotels to vacation ownership. Originated contract sales of vacation ownership intervals and number of contracts signed increased 1.2% and 2.3%, respectively. The average price per vacation ownership unit sold decreased 1.9% to approximately $14,000, driven by inventory mix.

Residential

During the third quarter of 2013, the Company’s residential revenues were $43 million compared to $67 million in 2012. The Company realized residential revenues from Bal Harbour of $40 million and generated EBITDA of $19 million, compared to revenues of $62 million and EBITDA of $12 million in the same period of 2012. During the third quarter of 2013, the Company closed sales of 12 units at Bal Harbour and realized incremental cash proceeds of $40 million associated with these units. From project inception through September 30, 2013, the Company has closed contracts on approximately 97% of the total residential units available at Bal Harbour and realized residential revenue of $1.1 billion and EBITDA of $268 million.

Selling, General, Administrative and Other

During the third quarter of 2013, selling, general, administrative and other expenses increased 14.9% to $100 million for the three months ended September 30, 2013, when compared to the corresponding period of 2012. The increase was primarily due to the timing of expenses in 2013 when compared to 2012 and certain non-recurring expenses including an elective payment to maintain a management contract. The Company continues to expect selling, general, administrative, and other expenses to increase 2% to 3% for the full year.

Legal Settlement

The Company recorded a favorable adjustment to a legal reserve of approximately $22 million in the three months ended September 30, 2013, related to judgment and settlement, interest costs, legal fees and expenses in regards to a long standing litigation. This adjustment was treated as a special item in the third quarter results.

Capital

Gross capital spending during the quarter included approximately $33 million of maintenance capital and $70 million of development capital.

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Asset Sales

During the third quarter of 2013, the Company completed the sale of a non-core asset for cash proceeds of approximately $12 million and recorded a gain of approximately $4 million. The Company has also entered into an agreement to sell two hotels that is expected to close in the fourth quarter.

Dividend

Starwood’s Board of Directors has declared the Company’s annual cash dividend of $1.35 per share. The dividend will be paid on December 27, 2013 to stockholders of record on December 13, 2013. The Board of Directors has also decided to pay dividends to stockholders on a quarterly basis commencing in 2014 and intends to make four quarterly dividend payments in 2014.

Share Repurchase

In the third quarter of 2013, the Company repurchased approximately 2.73 million shares at a total cost of approximately $180.7 million and a weighted average price of $66.14 per share. As of September 30, 2013, approximately $443.3 million remained available under the Company’s share repurchase authorization. Subsequent to the end of the quarter and through October 18, 2013, the Company repurchased an additional 1.14 million shares at a total cost of approximately $75.9 million and a weighted average price of $66.69 per share.

Balance Sheet

At September 30, 2013, the Company had gross debt of $1.3 billion, cash and cash equivalents of $819 million (including $125 million of restricted cash) and net debt of approximately $448 million, compared to net debt of approximately $463 million as of June 30, 2013, in each case excluding debt and restricted cash associated with securitized vacation ownership notes receivable. Net debt at September 30, 2013, including $397 million of debt and $16 million of restricted cash associated with securitized vacation ownership notes receivable, was approximately $829 million.

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Outlook

For the Full Year 2013:

Including Bal Harbour, which is expected to contribute approximately $117 million of EBITDA, Adjusted EBITDA is expected to be approximately $1.252 billion to $1.257 billion (based on the assumptions below).

• Excluding Bal Harbour, Adjusted EBITDA is expected to be approximately $1.135 billion to $1.140 billion, assuming:

• REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 5% to 6% in constant dollars (approximately 50 basis points lower in actual dollars at current exchange rates).

• REVPAR increases at Same-Store Company-Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 75 basis points lower in actual dollars at current exchange rates).

• Margins at Same-Store Owned Hotels Worldwide increase 75 to 125 basis points.

• Management fees, franchise fees and other income increase approximately 7.5% to 9.5%.

• Earnings from the Company’s vacation ownership and residential business of approximately $165 million to $170 million.

• Selling, general and administrative expenses increase approximately 2% to 3%.

• Shifts in exchange rates since we first provided our outlook will negatively impact full year earnings by $14 million if exchange rates stay at current levels.

• Depreciation and amortization is expected to be approximately $289 million.

• Interest expense is expected to be approximately $118 million.

• Full year effective tax rate excluding special items is expected to be approximately 33%, and cash taxes are expected to be approximately $135 million.

• Including Bal Harbour, EPS before special items is expected to be approximately $2.93 to $2.95 (based on the assumptions above).

• Full year capital expenditures (excluding vacation ownership and residential inventory) are expected to be approximately $150 million for maintenance, renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments are expected to total approximately $275 million.

• Vacation ownership (excluding Bal Harbour) is expected to generate approximately $100 million in positive cash flow. Vacation ownership cash flow does not include a receivable securitization in 2013. Bal Harbour is expected to generate at least $200 million in net cash flow.

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For the three months ended December 31, 2013:

• Including Bal Harbour, which is expected to contribute approximately $10 million of EBITDA, Adjusted EBITDA is expected to be approximately $300 million to $305 million (based on the assumptions below).

• Excluding Bal Harbour, Adjusted EBITDA is expected to be approximately $290 million to $295 million, assuming:

• REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 5% to 6% in constant dollars (approximately 50 basis points lower in actual dollars at current exchange rates).

• REVPAR increases at Same-Store Company-Owned Hotels Worldwide of 4% to 6% in constant dollars (approximately 75 basis points lower in actual dollars at current exchange rates).

• Management fees, franchise fees and other income increase approximately 6% to 8%.

• Earnings from the Company’s vacation ownership and residential business decrease approximately $10 million to $15 million year over year.

• Depreciation and amortization is expected to be approximately $75 million.

• Interest expense is expected to be approximately $30 million.

• Including Bal Harbour, income from continuing operations is expected to be approximately $131 million to $134 million, (based on the assumptions above).

• The effective tax rate excluding special items is expected to be approximately 33%.

• Including Bal Harbour, EPS is expected to be approximately $0.68 to $0.70 (based on the assumptions above).

For the Full Year 2014:

At this point, the Company expects REVPAR at Same-Store Company-Operated Hotels Worldwide to increase 5% to 7% in constant dollars. In 2013, the Company expects Bal Harbour to contribute approximately $117 million in earnings. Bal Harbour is expected to sell out in 2013 and, as a result, the Company expects that there will be no earnings from Bal Harbour in 2014. Asset sales completed to date, and including the sale of two hotels expected to close in the fourth quarter, will reduce 2014 EBITDA by approximately $12 million year over year and approximately $20 million on an annualized basis. The Company will provide more details on its 2014 expectations in February.

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Special Items

The Company’s special items included a pre-tax benefit of $21 million ($20 million benefit after-tax) in the third quarter of 2013 compared to a pre-tax benefit of $1 million ($33 million after-tax) in the same period of 2012.

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 September 30,						Nine Months  Ended September 30,
2013			2012			2013			2012
$	137		$	114	Income from continuing operations before special items	$	438		$	376
$	0.71		$	0.58	EPS before special items	$	2.26		$	1.91
					Special Items
	22			—	Restructuring and other special (charges) credits, net(a)		23			11
	3			1	Gain (loss) on asset dispositions and impairments, net(b)		(5	)		(7	)
	(4	)		—	Impairment of unconsolidated joint venture hotel(c)		(4	)		—
	—			—	Debt Extinguishment(d)		—			(15	)
	21			1	Total special items – pre-tax		14			(11	)
	(1	)		32	Income tax benefit (expense) for special items(e)		(15	)		40
	20			33	Total special items – after-tax		(1	)		29
$	157		$	147	Income from continuing operations	$	437		$	405
$	0.81		$	0.75	EPS including special items	$	2.25		$	2.06

a) During the three and nine months ended September 30, 2013, the credit primarily related to a favorable adjustment to a legal reserve. During the nine months ended September 30, 2012, the Company recorded a favorable adjustment of $11 million to reverse a portion of a litigation reserve.

b) During the three months ended September 30, 2013, the gain primarily related to the sale of a non-core asset. The nine months ended September 30, 2013 primarily included charges related to the sales of three wholly-owned hotels. The loss during the nine months ended September 30, 2012 related to the sale of one wholly-owned hotel.

c) During the three and nine months ended September 30, 2013, the net loss related to an impairment charge associated with a hotel in which the Company owns a non-controlling joint venture interest.

d) During the nine months ended September 30, 2012, the net charges were associated with the redemption of approximately $495 million of senior notes.

e) During the three months ended September 30, 2013, the net charge related to tax expense on the legal reserve adjustment discussed above, substantially offset by a $4 million tax benefit on a non-core asset disposition with a high tax basis and a $3 million deferred tax benefit associated with the reversal of the valuation allowance as the asset is now deemed realizable. The nine months ended September 30, 2013 include net tax charges associated with an asset disposition, interest on deferred income associated with vacation ownership sales, tax reserves and the resolution of certain tax positions. During the three and nine months ended September 30, 2012, the tax benefit primarily related to the sale of two hotels with high tax bases.

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 ongoing operations.

Starwood will be conducting a conference call to discuss the third quarter financial results at 11:00 a.m. Eastern Time today, available via webcast on the Company’s website athttp://www.starwoodhotels.com/corporate/about/investor/earnings.html. A webcast replay will be available on the corporate website a few hours after the live event on Thursday, October 24 and will run for one year. Alternatively, participants may call into (866) 921-0636 with conference ID 64233233; please dial in fifteen minutes early to ensure a timely start. A call replay will be available a few hours after the live event on Thursday, October 24 and will run for one week; the call replay can be accessed by dialing (855) 859-2056 with conference ID 64233233.

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Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations attributable to Starwood’s common stockholders. All references to continuing operations, discontinued operations and net income reflect amounts attributable to Starwood’s common stockholders (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 the Company’s 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 the operating performance for the 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 ongoing 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.

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, leased and managed hotels. References to Systemwide 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 revenues in constant dollars represent revenues, excluding the impact of the movement of foreign exchange rates. The Company calculates revenues in constant dollars by calculating revenues for the current year using the prior year’s exchange rates. The Company uses this revenue measure to better understand the underlying results and trends of the business, excluding the impact of movements in foreign exchange rates.

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All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology. All references to earnings from vacation ownership and residential represents operating income before depreciation expense. 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.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,169 properties in nearly 100 countries and 171,000 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis^®, The Luxury Collection^®, W^®, Westin^®, Le Méridien^®, Sheraton^®, Four Points^® by Sheraton, Aloft^®, and Element^®. The Company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, including reconciliations of non-GAAP financial measures to GAAP financial measures, please visitwww.starwoodhotels.com or contact Investor Relations at (203) 351-3500.

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, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), 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 September 30,										Nine Months Ended September 30,
2013			2012			% Variance				2013			2012			% Variance
									Revenues
$	398		$	425			(6.4	)	Owned, leased and consolidated joint venture hotels	$	1,196		$	1,280			(6.6	)
	200			208			(3.8	)	Vacation ownership and residential sales and services		748			1,038			(27.9	)
	247			219			12.8		Management fees, franchise fees and other income		700			642			9.0
	663			603			10.0		Other revenues from managed and franchised properties(a)		1,965			1,828			7.5
	1,508			1,455			3.6				4,609			4,788			(3.7	)
									Costs and Expenses
	318			348			8.6		Owned, leased and consolidated joint venture hotels		966			1,057			8.6
	141			156			9.6		Vacation ownership and residential		503			790			36.3
	100			87			(14.9	)	Selling, general, administrative and other		278			269			(3.3	)
	(22	)		—			n/m		Restructuring and other special charges (credits), net		(23	)		(11	)		n/m
	59			55			(7.3	)	Depreciation		174			168			(3.6	)
	6			6			—		Amortization		21			18			(16.7	)
	663			603			(10.0	)	Other expenses from managed and franchised properties(a)		1,965			1,828			(7.5	)
	1,265			1,255			(0.8	)			3,884			4,119			5.7
	243			200			21.5		Operating income		725			669			8.4
	—			4			(100.0	)	Equity earnings and gains/(losses) from unconsolidated ventures, net		17			19			(10.5	)
	(25	)		(39	)		35.9		Interest expense, net of interest income of $1, $0, $2 and $1		(77	)		(134	)		42.5
	—			—			—		Loss on early extinguishment of debt, net		—			(15	)		100.0
	3			1			n/m		Gain (loss) on asset dispositions and impairments, net		(5	)		(7	)		28.6
	221			166			33.1		Income from continuing operations before taxes and noncontrolling interests		660			532			24.1
	(64	)		(19	)		n/m		Income tax benefit (expense)		(223	)		(127	)		(75.6	)
	157			147			6.8		Income from continuing operations		437			405			7.9
									Discontinued Operations:
	—			23			(100.0	)	Gain on dispositions, net of tax		70			15			n/m
	157			170			(7.6	)	Net income		507			420			20.7
	—			—			—		Net loss (income) attributable to noncontrolling interests		—			—			—
$	157		$	170			(7.6	)	Net income attributable to Starwood	$	507		$	420			20.7
									Earnings (Losses) Per Share – Basic
$	0.82		$	0.76			7.9		Continuing operations	$	2.28		$	2.10			8.6
	—			0.12			(100.0	)	Discontinued operations		0.37			0.08			n/m
$	0.82		$	0.88			(6.8	)	Net income (loss)	$	2.65		$	2.18			21.6
									Earnings (Losses) Per Share – Diluted
$	0.81		$	0.75			8.0		Continuing operations	$	2.25		$	2.06			9.2
	—			0.12			(100.0	)	Discontinued operations		0.36			0.08			n/m
$	0.81		$	0.87			(6.9	)	Net income (loss)	$	2.61		$	2.14			22.0
									Amounts attributable to Starwood’s Common Stockholders
$	157		$	147			6.8		Continuing operations	$	437		$	405			7.9
	—			23			(100.0	)	Discontinued operations		70			15			n/m
$	157		$	170			(7.6	)	Net income (loss)	$	507		$	420			20.7
	192			193					Weighted average number of shares		192			193
	194			196					Weighted average number of shares assuming dilution		194			197

(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

11

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Consolidated Balance Sheets

(In millions, except share data)

	September 30, 2013			December 31, 2012
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	694		$	305
Restricted cash		137			158
Accounts receivable, net of allowance for doubtful accounts of $63 and $59		614			586
Inventories		229			361
Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $6 and $9		60			65
Deferred income taxes		241			320
Prepaid expenses and other		161			124
Total current assets		2,136			1,919
Investments		252			260
Plant, property and equipment, net		3,097			3,162
Assets held for sale, net		—			36
Goodwill and intangible assets, net		2,040			2,025
Deferred income taxes		585			636
Other assets(a)		506			385
Securitized vacation ownership notes receivable		347			438
Total assets	$	8,963		$	8,861
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt(b)	$	2		$	2
Accounts payable		90			121
Current maturities of long-term securitized vacation ownership debt		106			150
Accrued expenses		1,136			1,074
Accrued salaries, wages and benefits		370			395
Accrued taxes and other		196			287
Total current liabilities		1,900			2,029
Long-term debt(b)		1,265			1,273
Long-term securitized vacation ownership debt		291			383
Deferred income taxes		79			78
Other liabilities		1,907			1,956
Total liabilities		5,442			5,719
Commitments and contingencies
Stockholders’ equity:
Common stock; $0.01 par value; authorized 1,000,000,000 shares; outstanding 192,556,861 and 193,121,094 shares at September 30, 2013 and December 31, 2012, respectively		2			2
Additional paid-in capital		704			816
Accumulated other comprehensive loss		(354	)		(338	)
Retained earnings		3,164			2,657
Total Starwood stockholders’ equity		3,516			3,137
Noncontrolling interest		5			5
Total stockholders’ equity		3,521			3,142
Total liabilities and stockholders’ equity	$	8,963		$	8,861

(a) Includes restricted cash of $4 million and $6 million at September 30, 2013 and December 31, 2012, respectively.

(b) Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $219 million and $389 million at September 30, 2013 and December 31, 2012, respectively.

12

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Historical Data

(In millions)

Three Months Ended September 30,									Nine Months Ended September 30,
2013		2012			% Variance				2013			2012			% Variance
								Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
	$157	$	170			(7.6	)	Net income	$	507		$	420			20.7
	28		41			(31.7	)	Interest expense(a)		88			142			(38.0	)
	—		—			—		Loss on early extinguishment of debt, net		—			15			(100.0	)
	64		35			82.9		Income tax (benefit) expense(b)		153			142			7.7
	66		63			4.8		Depreciation(c)		191			190			0.5
	7		6			16.7		Amortization(d)		24			20			20.0
	322		315			2.2		EBITDA		963			929			3.7
	(3)		(1	)		n/m		(Gain) loss on asset dispositions and impairments, net		5			7			(28.6	)
	(22)		—			n/m		Restructuring and other special charges (credits), net		(23	)		(11	)		n/m
	4		—			n/m		Impairment of unconsolidated joint venture hotel(e)		4			—			n/m
	—		(39	)		100.0		Discontinued operations (gain)/loss on dispositions(f)		—			(30	)		100.0
	$301	$	275			9.5		Adjusted EBITDA	$	949		$	895			6.0

(a) Includes $2 million and $2 million of Starwood’s share of interest expense of unconsolidated joint ventures for the three months ended September 30, 2013 and 2012, respectively, and $9 million and $7 million for the nine months ended September 30, 2013 and 2012, respectively.

(b) Includes $0 million and $16 million of tax expense (benefit) recorded in discontinued operations for the three months ended September 30, 2013 and 2012, respectively, and $(70) million and $15 million for the nine months ended September 30, 2013 and 2012, respectively.

(c) Includes $7 million and $8 million of Starwood’s share of depreciation expense of unconsolidated joint ventures for the three months ended September 30, 2013 and 2012, respectively, and $17 million and $22 million for the nine months ended September 30, 2013 and 2012, respectively.

(d) Includes $1 million and $0 million of Starwood’s share of amortization expense of unconsolidated joint ventures for the three months ended September 30, 2013 and 2012, respectively, and $3 million and $2 million for the nine months ended September 30, 2013 and 2012, respectively.

(e) The impairment charge is included in the equity earnings and gain/(loss) from unconsolidated ventures, net line item in the statement of income .

(f) Excludes the taxes included in (b) above.

13

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same-Store Owned/Leased Hotels Worldwide

(In millions)

	Three Months  Ended September 30, 2013
	$ Change		% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	15		5.0
Impact of changes in foreign exchange rates		3		0.9
Revenue increase/(decrease) in constant dollars	$	18		5.9
Expense
Expense increase/(decrease) (GAAP)	$	8		3.2
Impact of changes in foreign exchange rates		2		0.9
Expense increase/(decrease) in constant dollars	$	10		4.1

Non-GAAP to GAAP Reconciliations – Same-Store Owned/Leased Hotels North America

(In millions)

	Three Months  Ended September 30, 2013
	$ Change		% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	11		9.6
Impact of changes in foreign exchange rates		2		1.7
Revenue increase/(decrease) in constant dollars	$	13		11.3
Expense
Expense increase/(decrease) (GAAP)	$	7		6.7
Impact of changes in foreign exchange rates		1		1.4
Expense increase/(decrease) in constant dollars	$	8		8.1

Non-GAAP to GAAP Reconciliations – Same-Store Owned/Leased Hotels International

(In millions)

	Three Months  Ended September 30, 2013
	$ Change		% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	4		2.1
Impact of changes in foreign exchange rates		1		0.5
Revenue increase/(decrease) in constant dollars	$	5		2.6
Expense
Expense increase/(decrease) (GAAP)	$	1		0.6
Impact of changes in foreign exchange rates		1		0.5
Expense increase/(decrease) in constant dollars	$	2		1.1

14

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliation – Earnings from Vacation Ownership and Residential Business

(In millions)

	Three Months Ended September 30,
	2013			2012			$ Variance
Vacation ownership and residential sales and services revenue	$	200		$	208			(8	)
Vacation ownership and residential expenses		(141	)		(156	)		15
Earnings from vacation ownership and residential	$	59		$	52			7

Non-GAAP to GAAP Reconciliation – EBITDA from Bal Harbour

(In millions)

	Three Months Ended September 30
	2013			2012			$ Variance
Total Bal Harbour revenues	$	40		$	62			(22	)
Total Bal Harbour expenses		(21	)		(50	)		29
EBITDA from Bal Harbour	$	19		$	12			7

15

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Future Performance

(In millions, except per share data)

Low Case

Three Months  Ended December 31, 2013			Year Ended December 31, 2013
$	131	Net income(a)	$	635
	30	Interest expense		118
	64	Income tax expense(a)		224
	75	Depreciation and amortization		289
	300	EBITDA		1,266
	—	(Gain) loss on asset dispositions and impairments, net		9
	—	Restructuring and other special charges (credits)		(23	)
$	300	Adjusted EBITDA	$	1,252
Three Months Ended December 31, 2013			Year Ended December 31, 2013
$	131	Income from continuing operations before special items	$	566
$	0.68	EPS before special items	$	2.93
		Special Items
	—	Gain (loss) on asset dispositions and impairments, net		(9	)
	—	Restructuring and other special (charges) credits		23
	—	Total special items – pre-tax		14
	—	Income tax (expense) benefit associated with special items		(15	)
	—	Total special items – after-tax		(1	)
$	131	Income from continuing operations	$	565
$	0.68	EPS including special items	$	2.92
		High Case
Three Months Ended December 31, 2013			Year Ended December 31, 2013
$	134	Net income(a)	$	639
	30	Interest expense		118
	66	Income tax expense(a)		225
	75	Depreciation and amortization		289
	305	EBITDA		1,271
	—	(Gain) loss on asset dispositions and impairments, net		9
	—	Restructuring and other special charges (credits)		(23	)
$	305	Adjusted EBITDA	$	1,257
Three Months Ended December 31, 2013			Year Ended December 31, 2013
$	134	Income from continuing operations before special items	$	570
$	0.70	EPS before special items	$	2.95
		Special Items
	—	Gain (loss) on asset dispositions and impairments, net		(9	)
	—	Restructuring and other special (charges) credits		23
	—	Total special items – pre-tax		14
	—	Income tax (expense) benefit associated with special items		(15	)
	—	Total special items – after-tax		(1	)
$	134	Income from continuing operations	$	569
$	0.70	EPS including special items	$	2.94

(a) The full year amounts include a tax benefit of $70 million recorded in discontinued operations.

16

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations –

Future Earnings from Vacation Ownership and Residential Business

Excluding Bal Harbour

(In millions)

Low Case

	Three Months Ended December 31,
	2013			2012			$ Variance
Vacation ownership and residential sales and services revenues, net of direct expenses	$	41		$	78		$	(37	)
Less: Bal Harbour revenues, net of direct expenses		(10	)		(32	)		22
Vacation ownership and residential sales and services revenue, net of direct expenses excluding Bal Harbour	$	31		$	46		$	(15	)

	Year Ended December 31, 2013
Vacation ownership and residential sales and services revenues, net of direct expenses	$	282
Less: Bal Harbour revenues, net of direct expenses		(117	)
Vacation ownership and residential sales and services revenue, net of direct expenses excluding Bal Harbour	$	165

High Case

	Three Months Ended December 31,
	2013			2012			$ Variance
Vacation ownership and residential sales and services revenues, net of direct expenses	$	46		$	78		$	(32	)
Less: Bal Harbour revenues, net of direct expenses		(10	)		(32	)		22
Vacation ownership and residential sales and services revenue, net of direct expenses excluding Bal Harbour	$	36		$	46		$	(10	)

	Year Ended December 31, 2013
Vacation ownership and residential sales and services revenues, net of direct expenses	$	287
Less: Bal Harbour revenues, net of direct expenses		(117	)
Vacation ownership and residential sales and services revenue, net of direct expenses excluding Bal Harbour	$	170

17

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses

(In millions)

Three Months Ended September 30,									Nine Months Ended September 30,
2013			2012		%     Variance			Same-Store Owned Hotels Worldwide	2013		2012		% Variance
								Revenue
$	325		$	310		5.0		Same-Store Owned Hotels(a)	$	943	$	900		4.8
	—			46		(100.0	)	Hotels Sold or Closed in 2013 and 2012		12		146		(91.8	)
	66			63		4.8		Hotels Without Comparable Results		221		214		3.3
	7			6		16.7		Other ancillary hotel operations		20		20		—
$	398		$	425		(6.4	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	1,196	$	1,280		(6.6	)
								Costs and Expenses
$	254		$	246		(3.2	)	Same-Store Owned Hotels(a)	$	740	$	720		(2.8	)
	—			36		100.0		Hotels Sold or Closed in 2013 and 2012		10		117		91.5
	59			59		—		Hotels Without Comparable Results		198		201		1.5
	5			7		28.6		Other ancillary hotel operations		18		19		5.3
$	318		$	348		8.6		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	966	$	1,057		8.6
Three Months Ended September 30,									Nine Months Ended September 30,
2013			2012		% Variance			Same-Store Owned Hotels North America	2013		2012		% Variance
								Revenue
$	131		$	120		9.6		Same-Store Owned Hotels(a)	$	431	$	387		11.4
	—			46		(100.0	)	Hotels Sold or Closed in 2013 and 2012		12		146		(91.8	)
	58			62		(6.5	)	Hotels Without Comparable Results		173		194		(10.8	)
$	189		$	228		(17.1	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	616	$	727		(15.3	)
								Costs and Expenses
$	112		$	105		(6.7	)	Same-Store Owned Hotels(a)	$	348	$	330		(5.5	)
	—			36		100.0		Hotels Sold or Closed in 2013 and 2012		10		117		91.5
	54			58		6.9		Hotels Without Comparable Results		161		177		9.0
	(1	)		—		—		Other ancillary hotel operations		—		1		100.0
$	165		$	199		17.1		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	519	$	625		17.0
Three Months Ended September 30,									Nine Months Ended September 30,
2013			2012		% Variance			Same-Store Owned Hotels International	2013		2012		% Variance
								Revenue
$	194		$	190		2.1		Same-Store Owned Hotels(a)	$	512	$	513		(0.2	)
	—			—		—		Hotels Sold or Closed in 2013 and 2012		—		—		—
	8			1		n/m		Hotels Without Comparable Results		48		20		n/m
	7			6		16.7		Other ancillary hotel operations		20		20		—
$	209		$	197		6.1		Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	580	$	553		4.9
								Costs and Expenses
$	142		$	141		(0.6	)	Same-Store Owned Hotels(a)	$	392	$	390		(0.5	)
	—			—		—		Hotels Sold or Closed in 2013 and 2012		—		—		—
	5			1		n/m		Hotels Without Comparable Results		37		24		(54.2	)
	6			7		14.3		Other ancillary hotel operations		18		18		—
$	153		$	149		(2.7	)	Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	447	$	432		(3.5	)

(a) Same-Store Owned Hotel results exclude 11 hotels sold, one hotel transferred to vacation ownership, and seven hotels without comparable results for the three months ended September 30, 2013 and 12 hotels sold, one hotel transferred to vacation ownership, and 10 hotels without comparable results, for the nine months ended September 30, 2013.

18

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide⁽¹⁾ Statistics—Same Store

For the Three Months Ended September 30,

UNAUDITED

	Systemwide—Worldwide									Systemwide—North America									Systemwide—International
	2013			2012			Var. USD			2013			2012			Var. USD			2013			2012			Var. USD
TOTAL HOTELS
REVPAR ($)		122.50			117.54			4.2	%		124.65			118.25			5.4	%		119.84			116.66			2.7	%
ADR ($)		172.23			167.90			2.6	%		163.92			157.42			4.1	%		184.26			183.20			0.6	%
Occupancy (%)		71.1	%		70.0	%		1.1			76.0	%		75.1	%		0.9			65.0	%		63.7	%		1.3
SHERATON
REVPAR ($)		102.97			100.48			2.5	%		107.27			102.61			4.5	%		97.86			97.96			(0.1	%)
ADR ($)		148.86			146.08			1.9	%		144.28			138.74			4.0	%		155.25			156.35			(0.7	%)
Occupancy (%)		69.2	%		68.8	%		0.4			74.3	%		74.0	%		0.3			63.0	%		62.7	%		0.3
WESTIN
REVPAR ($)		132.28			126.74			4.4	%		133.55			125.75			6.2	%		129.40			128.96			0.3	%
ADR ($)		176.75			173.55			1.8	%		172.40			166.25			3.7	%		187.79			192.10			(2.2	%)
Occupancy (%)		74.8	%		73.0	%		1.8			77.5	%		75.6	%		1.9			68.9	%		67.1	%		1.8
ST. REGIS/LUXURY COLLECTION
REVPAR ($)		222.78			205.37			8.5	%		245.35			220.77			11.1	%		212.93			198.63			7.2	%
ADR ($)		335.18			325.49			3.0	%		322.95			301.89			7.0	%		341.68			338.34			1.0	%
Occupancy (%)		66.5	%		63.1	%		3.4			76.0	%		73.1	%		2.9			62.3	%		58.7	%		3.6
LE MERIDIEN
REVPAR ($)		136.67			130.55			4.7	%		218.44			206.37			5.8	%		124.10			118.90			4.4	%
ADR ($)		192.51			187.28			2.8	%		255.95			241.33			6.1	%		180.41			176.73			2.1	%
Occupancy (%)		71.0	%		69.7	%		1.3			85.3	%		85.5	%		(0.2	)		68.8	%		67.3	%		1.5
W
REVPAR ($)		226.03			213.86			5.7	%		207.29			198.26			4.6	%		274.02			253.62			8.0	%
ADR ($)		283.58			273.44			3.7	%		257.53			250.94			2.6	%		352.77			332.89			6.0	%
Occupancy (%)		79.7	%		78.2	%		1.5			80.5	%		79.0	%		1.5			77.7	%		76.2	%		1.5
FOUR POINTS
REVPAR ($)		79.43			77.09			3.0	%		87.29			86.03			1.5	%		67.17			63.31			6.1	%
ADR ($)		112.70			110.56			1.9	%		115.90			113.78			1.9	%		106.72			104.38			2.2	%
Occupancy (%)		70.5	%		69.7	%		0.8			75.3	%		75.6	%		(0.3	)		62.9	%		60.7	%		2.2
ALOFT
REVPAR ($)		75.26			71.08			5.9	%		85.27			80.79			5.5	%		50.99			47.26			7.9	%
ADR ($)		106.08			103.25			2.7	%		114.38			109.99			4.0	%		81.98			82.15			(0.2	%)
Occupancy (%)		70.9	%		68.8	%		2.1			74.5	%		73.5	%		1.0			62.2	%		57.5	%		4.7

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

19

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results—Same Store

For the Three Months Ended September 30,

UNAUDITED

	Systemwide(1)									Company Operated(2)
	2013			2012			Var. USD			2013			2012			Var. USD
TOTAL WORLDWIDE
REVPAR ($)		122.50			117.54			4.2	%		137.24			130.56			5.1	%
ADR ($)		172.23			167.90			2.6	%		195.20			189.45			3.0	%
Occupancy (%)		71.1	%		70.0	%		1.1			70.3	%		68.9	%		1.4
AMERICAS
REVPAR ($)		121.64			115.69			5.1	%		148.01			139.08			6.4	%
ADR ($)		163.25			157.03			4.0	%		196.63			187.21			5.0	%
Occupancy (%)		74.5	%		73.7	%		0.8			75.3	%		74.3	%		1.0
NORTH AMERICA
REVPAR ($)		124.65			118.25			5.4	%		155.07			145.11			6.9	%
ADR ($)		163.92			157.42			4.1	%		199.94			189.77			5.4	%
Occupancy (%)		76.0	%		75.1	%		0.9			77.6	%		76.5	%		1.1
LATIN AMERICA
REVPAR ($)		87.09			86.27			1.0	%		94.63			93.52			1.2	%
ADR ($)		152.93			151.15			1.2	%		163.10			161.69			0.9	%
Occupancy (%)		56.9	%		57.1	%		(0.2	)		58.0	%		57.8	%		0.2
ASIA PACIFIC
REVPAR ($)		101.78			100.38			1.4	%		103.95			100.39			3.5	%
ADR ($)		156.24			161.03			(3.0	%)		159.24			161.30			(1.3	%)
Occupancy (%)		65.1	%		62.3	%		2.8			65.3	%		62.2	%		3.1
GREATER CHINA
REVPAR ($)		90.11			86.14			4.6	%		90.31			86.25			4.7	%
ADR ($)		150.06			151.02			(0.6	%)		149.60			150.92			(0.9	%)
Occupancy (%)		60.0	%		57.0	%		3.0			60.4	%		57.1	%		3.3
REST OF ASIA PACIFIC
REVPAR ($)		115.29			116.88			(1.4	%)		126.59			123.87			2.2	%
ADR ($)		162.29			170.70			(4.9	%)		172.39			175.25			(1.6	%)
Occupancy (%)		71.0	%		68.5	%		2.5			73.4	%		70.7	%		2.7
EAME
REVPAR ($)		150.54			144.56			4.1	%		156.92			150.71			4.1	%
ADR ($)		224.43			215.54			4.1	%		233.63			224.93			3.9	%
Occupancy (%)		67.1	%		67.1	%		0.0			67.2	%		67.0	%		0.2
EUROPE
REVPAR ($)		177.97			168.85			5.4	%		196.70			186.31			5.6	%
ADR ($)		240.87			231.44			4.1	%		258.26			249.10			3.7	%
Occupancy (%)		73.9	%		73.0	%		0.9			76.2	%		74.8	%		1.4
AFRICA & MIDDLE EAST
REVPAR ($)		93.92			94.54			(0.7	%)		93.93			94.51			(0.6	%)
ADR ($)		177.14			172.04			3.0	%		177.49			172.77			2.7	%
Occupancy (%)		53.0	%		55.0	%		(2.0	)		52.9	%		54.7	%		(1.8	)

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

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

20

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned/Leased Hotel Results—Same Store

For the Three Months Ended September 30,

UNAUDITED

	Worldwide									North America									International
	2013			2012			Var. USD			2013			2012			Var. USD			2013			2012			Var. USD
TOTAL HOTELS	41 Hotels									13 Hotels									28 Hotels
REVPAR ($)		171.21			163.87			4.5	%		162.81			152.34			6.9	%		177.45			172.44			2.9	%
ADR ($)		228.51			219.08			4.3	%		204.97			193.37			6.0	%		247.88			240.03			3.3	%
Occupancy (%)		74.9	%		74.8	%		0.1			79.4	%		78.8	%		0.6			71.6	%		71.8	%		(0.2	)
Total Revenue*		325,208			309,829			5.0	%		130,820			119,358			9.6	%		194,388			190,471			2.1	%
Total Expenses*		254,266			246,412			(3.2	%)		112,335			105,271			(6.7	%)		141,932			141,141			(0.6	%)

* Revenues & Expenses above are represented in ‘000’s

21

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Three Months Ended September 30,

UNAUDITED ($ millions)

	Worldwide
	2013		2012		Variance			% Variance
Management Fees
Base Fees		92		83		9			10.8	%
Incentive Fees		44		39		5			12.8	%
Total Management Fees		136		122		14			11.5	%
Franchise Fees		56		53		3			5.7	%
Total Management & Franchise Fees		192		175		17			9.7	%
Other Management & Franchise Revenues (1)		50		37		13			35.1	%
Total Management & Franchise Revenues		242		212		30			14.2	%
Other		5		7		(2	)		(28.6	)%
Management Fees, Franchise Fees and Other Income		247		219		28			12.8	%

(1) Other Management & Franchise Revenues primarily includes the amortization of the deferred gains of approximately $23 million in 2013 and $21 million in 2012, resulting from the sales of hotels subject to long-term management contracts and termination fees. For the three months ended September 30, 2013, amount includes a fee associated with the termination of a management contract due to the sale of a hotel.

22

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Three Months Ended September 30,

UNAUDITED ($ millions)

	2013			2012			$ Variance			% Variance
Originated Sales Revenues (1)—Vacation Ownership Sales		82			81			1			1.2	%
Other Sales and Services Revenues(2)		76			67			9			13.4	%
Deferred Revenues—Percentage of Completion		3			—			3			—
Deferred Revenues—Other(3)		(4	)		(7	)		3			42.9	%
Vacation Ownership Sales and Services Revenues		157			141			16			11.3	%
Residential Sales and Services Revenues(4)		43			67			(24	)		(35.8	%)
Total Vacation Ownership & Residential Sales and Services Revenues		200			208			(8	)		(3.8	%)
Originated Sales Expenses (5)—Vacation Ownership Sales		55			53			(2	)		(3.8	%)
Other Expenses(6)		62			51			(11	)		(21.6	%)
Deferred Expenses—Percentage of Completion		1			—			(1	)		—
Deferred Expenses—Other		2			2			—			—
Vacation Ownership Expenses		120			106			(14	)		(13.2	%)
Residential Expenses(4)		21			50			29			58.0	%
Total Vacation Ownership & Residential Expenses		141			156			15			9.6	%

(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, 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 978-605-25 and provision for loan loss

(4) For 2013 and 2012, includes $40 and $62 million of revenues and $21 and $50 million expenses associated with the St. Regis Bal Harbour residential project, respectively.

(5) Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(6) 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 978-720-25 and ASC 978-340-25.

23

Starwood Hotels & Resorts Worldwide, Inc.

Systemwide⁽¹⁾ Statistics—Same Store

For the Nine Months Ended September 30,

UNAUDITED

	Systemwide—Worldwide									Systemwide—North America									Systemwide—International
	2013			2012			Var. USD			2013			2012			Var. USD			2013			2012			Var. USD
TOTAL HOTELS
REVPAR ($)		118.86			114.12			4.2	%		121.29			114.68			5.8	%		115.94			113.44			2.2	%
ADR ($)		171.93			167.88			2.4	%		164.47			157.64			4.3	%		182.36			182.29			0.0	%
Occupancy (%)		69.1	%		68.0	%		1.1			73.7	%		72.7	%		1.0			63.6	%		62.2	%		1.4
SHERATON
REVPAR ($)		100.03			97.61			2.5	%		102.64			97.84			4.9	%		97.05			97.35			(0.3	%)
ADR ($)		148.94			146.84			1.4	%		142.62			137.06			4.1	%		157.36			159.97			(1.6	%)
Occupancy (%)		67.2	%		66.5	%		0.7			72.0	%		71.4	%		0.6			61.7	%		60.9	%		0.8
WESTIN
REVPAR ($)		132.23			127.48			3.7	%		132.19			125.56			5.3	%		132.33			131.67			0.5	%
ADR ($)		180.90			177.02			2.2	%		174.77			168.84			3.5	%		195.73			196.80			(0.5	%)
Occupancy (%)		73.1	%		72.0	%		1.1			75.6	%		74.4	%		1.2			67.6	%		66.9	%		0.7
ST. REGIS/LUXURY COLLECTION
REVPAR ($)		208.23			190.65			9.2	%		250.77			222.54			12.7	%		188.31			175.78			7.1	%
ADR ($)		317.40			307.57			3.2	%		336.38			310.53			8.3	%		306.61			305.85			0.2	%
Occupancy (%)		65.6	%		62.0	%		3.6			74.6	%		71.7	%		2.9			61.4	%		57.5	%		3.9
LE MERIDIEN
REVPAR ($)		127.99			124.46			2.8	%		208.89			195.93			6.6	%		115.84			113.73			1.9	%
ADR ($)		187.08			183.38			2.0	%		253.48			240.57			5.4	%		174.69			172.76			1.1	%
Occupancy (%)		68.4	%		67.9	%		0.5			82.4	%		81.4	%		1.0			66.3	%		65.8	%		0.5
W
REVPAR ($)		220.44			207.74			6.1	%		202.46			192.72			5.1	%		261.92			242.19			8.1	%
ADR ($)		283.99			273.44			3.9	%		258.36			249.57			3.5	%		345.06			331.28			4.2	%
Occupancy (%)		77.6	%		76.0	%		1.6			78.4	%		77.2	%		1.2			75.9	%		73.1	%		2.8
FOUR POINTS
REVPAR ($)		77.06			73.25			5.2	%		81.86			78.32			4.5	%		69.66			65.46			6.4	%
ADR ($)		113.86			110.93			2.6	%		114.03			111.01			2.7	%		113.54			110.77			2.5	%
Occupancy (%)		67.7	%		66.0	%		1.7			71.8	%		70.5	%		1.3			61.4	%		59.1	%		2.3
ALOFT
REVPAR ($)		75.77			70.64			7.3	%		83.89			79.17			6.0	%		55.55			49.37			12.5	%
ADR ($)		109.08			105.46			3.4	%		115.35			110.16			4.7	%		90.57			90.07			0.6	%
Occupancy (%)		69.5	%		67.0	%		2.5			72.7	%		71.9	%		0.8			61.3	%		54.8	%		6.5

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

24

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results—Same Store

For the Nine Months Ended September 30,

UNAUDITED

	Systemwide(1)									Company Operated(2)
	2013			2012			Var. USD			2013		��	2012			Var. USD
TOTAL WORLDWIDE
REVPAR ($)		118.86			114.12			4.2	%		133.41			127.41			4.7	%
ADR ($)		171.93			167.88			2.4	%		194.67			190.00			2.5	%
Occupancy (%)		69.1	%		68.0	%		1.1			68.5	%		67.1	%		1.4
AMERICAS
REVPAR ($)		119.17			113.06			5.4	%		146.59			138.21			6.1	%
ADR ($)		164.34			157.81			4.1	%		198.92			189.73			4.8	%
Occupancy (%)		72.5	%		71.6	%		0.9			73.7	%		72.8	%		0.9
NORTH AMERICA
REVPAR ($)		121.29			114.68			5.8	%		152.68			143.11			6.7	%
ADR ($)		164.47			157.64			4.3	%		201.75			191.71			5.2	%
Occupancy (%)		73.7	%		72.7	%		1.0			75.7	%		74.6	%		1.1
LATIN AMERICA
REVPAR ($)		95.83			95.23			0.6	%		104.83			104.62			0.2	%
ADR ($)		162.61			160.13			1.5	%		174.44			172.96			0.9	%
Occupancy (%)		58.9	%		59.5	%		(0.6	)		60.1	%		60.5	%		(0.4	)
ASIA PACIFIC
REVPAR ($)		102.49			100.68			1.8	%		104.27			100.24			4.0	%
ADR ($)		162.44			165.96			(2.1	%)		165.50			166.87			(0.8	%)
Occupancy (%)		63.1	%		60.7	%		2.4			63.0	%		60.1	%		2.9
GREATER CHINA
REVPAR ($)		90.67			87.25			3.9	%		90.58			87.11			4.0	%
ADR ($)		157.93			158.93			(0.6	%)		157.30			159.08			(1.1	%)
Occupancy (%)		57.4	%		54.9	%		2.5			57.6	%		54.8	%		2.8
REST OF ASIA PACIFIC
REVPAR ($)		115.65			115.61			—			126.10			121.14			4.1	%
ADR ($)		166.60			172.35			(3.3	%)		176.01			176.78			(0.4	%)
Occupancy (%)		69.4	%		67.1	%		2.3			71.6	%		68.5	%		3.1
EAME
REVPAR ($)		138.36			134.44			2.9	%		145.80			141.52			3.0	%
ADR ($)		211.31			206.97			2.1	%		220.13			216.35			1.7	%
Occupancy (%)		65.5	%		65.0	%		0.5			66.2	%		65.4	%		0.8
EUROPE
REVPAR ($)		149.55			145.65			2.7	%		165.13			160.69			2.8	%
ADR ($)		220.63			216.59			1.9	%		236.46			233.15			1.4	%
Occupancy (%)		67.8	%		67.2	%		0.6			69.8	%		68.9	%		0.9
AFRICA & MIDDLE EAST
REVPAR ($)		115.75			111.74			3.6	%		115.97			111.93			3.6	%
ADR ($)		190.31			185.28			2.7	%		191.13			186.57			2.4	%
Occupancy (%)		60.8	%		60.3	%		0.5			60.7	%		60.0	%		0.7

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

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

25

Starwood Hotels & Resorts Worldwide, Inc.

Owned Hotel Results—Same Store

For the Nine Months Ended September 30,

UNAUDITED

	Worldwide									North America									International
	2013			2012			Var. USD			2013			2012			Var. USD			2013			2012			Var. USD
TOTAL HOTELS	38 Hotels									13 Hotels									25 Hotels
REVPAR ($)		166.80			159.54			4.6	%		173.62			157.03			10.6	%		161.57			161.46			0.1	%
ADR ($)		228.27			218.62			4.4	%		219.95			202.96			8.4	%		235.62			231.92			1.6	%
Occupancy (%)		73.1	%		73.0	%		0.1			78.9	%		77.4	%		1.5			68.6	%		69.6	%		(1.0	)
Total Revenue*		942,646			900,060			4.7	%		431,047			386,681			11.5	%		511,599			513,378			(0.3	%)
Total Expenses*		740,438			719,706			(2.9	%)		348,694			329,905			(5.7	%)		391,744			389,802			(0.5	%)

* Revenues & Expenses above are represented in ‘000’s

26

Starwood Hotels & Resorts Worldwide, Inc.

Management Fees, Franchise Fees and Other Income

For the Nine Months Ended September 30,

UNAUDITED ($ millions)

	Worldwide
	2013		2012		Variance			% Variance
Management Fees
Base Fees		264		244		20			8.2	%
Incentive Fees		133		119		14			11.8	%
Total Management Fees		397		363		34			9.4	%
Franchise Fees		160		150		10			6.7	%
Total Management & Franchise Fees		557		513		44			8.6	%
Other Management & Franchise Revenues (1)		126		110		16			14.5	%
Total Management & Franchise Revenues		683		623		60			9.6	%
Other		17		19		(2	)		(10.5	)%
Management Fees, Franchise Fees and Other Income		700		642		58			9.0	%

(1) Other Management & Franchise Revenues primarily includes the amortization of the deferred gains of approximately $68 million in 2013 and $64 million in 2012, resulting from the sales of hotels subject to long-term management contracts and termination fees. For the nine months ended September 30, 2013, amount includes a fee associated with the termination of a management contract due to the sale of a hotel.

27

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Nine Months Ended September 30,

UNAUDITED ($ millions)

	2013		2012			$ Variance			% Variance
Originated Sales Revenues (1) —Vacation Ownership Sales		244		240			4			1.7	%
Other Sales and Services Revenues(2)		247		209			38			18.2	%
Deferred Revenues—Percentage of Completion		1		3			(2	)		(66.7	%)
Deferred Revenues—Other(3)		1		(11	)		12			n/m
Vacation Ownership Sales and Services Revenues		493		441			52			11.8	%
Residential Sales and Services Revenues(4)		255		597			(342	)		(57.3	%)
Total Vacation Ownership & Residential Sales and Services Revenues		748		1,038			(290	)		(27.9	%)
Originated Sales Expenses (5)—Vacation Ownership Sales		171		164			(7	)		(4.3	%)
Other Expenses(6)		189		156			(33	)		(21.2	%)
Deferred Expenses—Percentage of Completion		—		2			2			100.0	%
Deferred Expenses—Other		7		8			1			12.5	%
Vacation Ownership Expenses		367		330			(37	)		(11.2	%)
Residential Expenses(4)		136		460			324			(70.4	%)
Total Vacation Ownership & Residential Expenses		503		790			287			36.3	%

(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, 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 978-605-25 and provision for loan loss

(4) For 2013 and 2012, includes $243 and $585 million of revenues and $136 and $460 million expenses associated with the St. Regis Bal Harbour residential project, respectively.

(5) Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(6) 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 978-720-25 and ASC 978-340-25.

n/m = not meaningful

28

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Hotels without Comparable Results & Other Selected Items

As of September 30, 2013

UNAUDITED ($ millions)

Properties without comparable results in 2013 and 2012:

Property	Location
The Westin Peachtree Plaza, Atlanta	Atlanta, GA
Sheraton Suites Philadelphia Airport	Philadelphia, PA
The St. Regis New York	New York, NY
The Westin Maui Resort & Spa, Ka’anapali	Maui, HI
Aloft San Francisco Airport	Millbrae, CA
Sheraton Santa Maria de El Paular	Madrid, Spain
Hotel Maria Cristina, San Sebastian	San Sebastian, Spain
Hotel Alfonso XIII, Seville	Seville, Spain
Aloft Tucson University	Tucson, AZ
The Gritti Palace, Venice	Venice, Italy
The Westin St. John*	St. John, Virgin Islands

Properties sold or closed in 2013 and 2012:

Property	Location
Atlanta Perimeter	Atlanta, GA
W Los Angeles—Westwood	Los Angeles, CA
W Chicago—Lakeshore	Chicago, IL
Caesars Cove Haven	Lakeville, PA
New York—Manhattan at Times Square	New York, NY
Caesars Paradise Stream	Mount Pocono, PA
Caesars Pocono Palace	Marshalls Creek, PA
Caesars Brookdale	Scotrun, PA
Aloft Lexington	Lexington, MA
Element Lexington	Lexington, MA
W New Orleans	New Orleans, LA
W New Orleans—French Quarter	New Orleans, LA

* Property transferred to vacation ownership.

Revenues and Expenses Associated with Assets Sold or Closed in 2013 and 2012:⁽¹⁾

	Q1		Q2		Q3		Q4		Full Year
Hotels Sold or Closed in 2012:
2012
Revenues	$	35	$	43	$	36	$	—		$    114
Expenses (excluding depreciation)	$	32	$	32	$	27	$	1		$      92
Hotels Sold or Closed in 2013:
2013
Revenues	$	10	$	2	$	—	$	—		$      12
Expenses (excluding depreciation)	$	8	$	2	$	—	$	—		$      10
2012
Revenues	$	11	$	11	$	10	$	11		$      43
Expenses (excluding depreciation)	$	8	$	9	$	9	$	8		$      34

(1) Results consist of four hotels sold in 2013 and eight hotels sold in 2012. These amounts are included in the revenues and expenses from owned, leased and consolidated joint venture hotels in the statements of income for 2013 and 2012. These amounts are not impacted from the sale of Caesars Brookdale because it was closed prior to 2012.

29

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Capital Expenditures

For the Three and Nine Months Ended September 30, 2013

UNAUDITED ($ millions)

	Q3			YTD
Maintenance Capital Expenditures:(1)
Owned, Leased and Consolidated Joint Venture Hotels		13			26
Corporate/IT		20			55
Subtotal		33			81
Vacation Ownership and Residential Capital Expenditures:
Net capital expenditures for inventory (excluding St. Regis Bal Harbour)(2)		(14	)		(37	)
Capital expenditures for inventory—St. Regis Bal Harbour		1			4
Subtotal		(13	)		(33	)
Development Capital		70			199
Total Capital Expenditures		90			247

(1) Maintenance capital expenditures include improvements that extend the useful life of the asset.

(2) Represents gross inventory capital expenditures of $5 million and $21 million in the three and nine months ended September 30, 2013, less cost of sales of $19 million and $58 million in the three and nine months ended September 30, 2013.

30

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

2013 Divisional Hotel Inventory Summary by Ownership by Brand

As of September 30, 2013

	Americas				North America				Latin America				Asia Pacific				Greater China				Rest of Asia				Europe, Africa & Middle East				Europe				Africa & Middle East				TOTAL
	Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms
Owned & Leased
Sheraton		11		6,228		6		3,529		5		2,699		2		821		—		—		2		821		4		705		4		705		—		—		17		7,754
Westin		6		3,131		3		2,229		3		902		1		273		—		—		1		273		3		650		3		650		—		—		10		4,054
Four Points		1		177		1		177		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		177
W		1		509		1		509		—		—		—		—		—		—		—		—		2		665		2		665		—		—		3		1,174
Luxury Collection		2		824		1		643		1		181		—		—		—		—		—		—		5		577		5		577		—		—		7		1,401
St. Regis		3		716		3		716		—		—		1		160		—		—		1		160		2		261		2		261		—		—		6		1,137
Le Meridien		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Aloft		3		542		3		542		—		—		—		—		—		—		—		—		—		—		—		—		—		—		3		542
Element		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Other		1		135		1		135		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		135
Total Owned & Leased		28		12,262		19		8,480		9		3,782		4		1,254		—		—		4		1,254		16		2,858		16		2,858		—		—		48		16,374
Managed & UJV
Sheraton		52		29,333		36		26,254		16		3,079		84		33,072		56		24,971		28		8,101		72		20,806		40		11,588		32		9,218		208		83,211
Westin		59		30,384		56		29,498		3		886		31		10,433		15		5,335		16		5,098		15		5,046		12		4,097		3		949		105		45,863
Four Points		3		426		—		—		3		426		24		7,460		19		5,839		5		1,621		14		2,582		5		779		9		1,803		41		10,468
W		28		8,485		26		8,052		2		433		9		2,302		3		1,115		6		1,187		4		805		3		364		1		441		41		11,592
Luxury Collection		11		1,938		4		1,648		7		290		10		1,983		4		811		6		1,172		26		4,859		21		3,475		5		1,384		47		8,780
St. Regis		11		2,117		9		1,808		2		309		8		2,032		5		1,380		3		652		6		1,376		2		223		4		1,153		25		5,525
Le Meridien		4		469		3		309		1		160		27		7,564		8		2,794		19		4,770		45		12,675		17		5,499		28		7,176		76		20,708
Aloft		3		469		—		—		3		469		7		1,801		5		1,023		2		778		4		943		3		535		1		408		14		3,213
Element		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Other		1		151		1		151		—		—		—		—		—		—		—		—		1		165		1		165		—		—		2		316
Total Managed & UJV		172		73,772		135		67,720		37		6,052		200		66,647		115		43,268		85		23,379		187		49,257		104		26,725		83		22,532		559		189,676
Franchised
Sheraton		176		51,589		164		48,567		12		3,022		13		6,124		3		1,836		10		4,288		19		4,942		17		4,539		2		403		208		62,655
Westin		66		20,939		61		19,412		5		1,527		9		2,730		2		496		7		2,234		3		1,176		3		1,176		—		—		78		24,845
Four Points		126		19,686		116		18,223		10		1,463		8		1,441		1		126		7		1,315		6		971		6		971		—		—		140		22,098
W		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Luxury Collection		10		1,940		7		1,500		3		440		10		3,071		—		—		10		3,071		12		1,673		12		1,673		—		—		32		6,684
St. Regis		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Le Meridien		12		3,027		11		2,916		1		111		3		715		1		160		2		555		5		1,446		3		623		2		823		20		5,188
Aloft		53		8,000		52		7,688		1		312		5		742		—		—		5		742		—		—		—		—		—		—		58		8,742
Element		11		1,793		11		1,793		—		—		—		—		—		—		—		—		—		—		—		—		—		—		11		1,793
Other		1		305		1		305		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		305
Total Franchised		455		107,279		423		100,404		32		6,875		48		14,823		7		2,618		41		12,205		45		10,208		41		8,982		4		1,226		548		132,310
Systemwide
Sheraton		239		87,150		206		78,350		33		8,800		99		40,017		59		26,807		40		13,210		95		26,453		61		16,832		34		9,621		433		153,620
Westin		131		54,454		120		51,139		11		3,315		41		13,436		17		5,831		24		7,605		21		6,872		18		5,923		3		949		193		74,762
Four Points		130		20,289		117		18,400		13		1,889		32		8,901		20		5,965		12		2,936		20		3,553		11		1,750		9		1,803		182		32,743
W		29		8,994		27		8,561		2		433		9		2,302		3		1,115		6		1,187		6		1,470		5		1,029		1		441		44		12,766
Luxury Collection		23		4,702		12		3,791		11		911		20		5,054		4		811		16		4,243		43		7,109		38		5,725		5		1,384		86		16,865
St. Regis		14		2,833		12		2,524		2		309		9		2,192		5		1,380		4		812		8		1,637		4		484		4		1,153		31		6,662
Le Meridien		16		3,496		14		3,225		2		271		30		8,279		9		2,954		21		5,325		50		14,121		20		6,122		30		7,999		96		25,896
Aloft		59		9,011		55		8,230		4		781		12		2,543		5		1,023		7		1,520		4		943		3		535		1		408		75		12,497
Element		11		1,793		11		1,793		—		—		—		—		—		—		—		—		—		—		—		—		—		—		11		1,793
Other		3		591		3		591		—		—		—		—		—		—		—		—		1		165		1		165		—		—		4		756
Vacation Ownership		14		7,532		13		6,952		1		580		—		—		—		—		—		—		—		—		—		—		—		—		14		7,532
Total Systemwide		669		200,845		590		183,556		79		17,289		252		82,724		122		45,886		130		36,838		248		62,323		161		38,565		87		23,758		1,169		345,892

Note: Includes Vacation Ownership properties

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership Inventory Pipeline

As of September 30, 2013

UNAUDITED

	# Resorts						# of Units(1)
Brand	Total (2)		In Operations		In Active Sales		Completed (3)		Pre-sales/ Development (4)		Future Capacity (5),(6)		Total at Buildout
Sheraton		7		7		6		3,079		—		712		3,791
Westin		9		9		9		1,584		22		91		1,697
St. Regis		2		2		—		56		—		—		56
The Luxury Collection		1		1		—		6		—		—		6
Unbranded		2		2		1		99		—		1		100
Total SVO, Inc.		21		21		16		4,824		22		804		5,650
Unconsolidated Joint Ventures (UJV’s)		1		1		1		198		—		—		198
Total including UJV’s		22		22		17		5,022		22		804		5,848
Total Intervals Including UJV’s(7)								261,144		1,144		41,808		304,096

(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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