Sheraton(R) Hotels & Resorts Partners With Microsoft to Keep Guests Connected on the Road

Microsoft Products And Services Will Keep Guests Connected At Sheraton's Newly Branded Signature Communications Hub: "link At Sheraton Experienced With Microsoft"

WHITE PLAINS, NY – Sheraton Hotels & Resorts and Microsoft Corp. announced today a partnership to implement products and services at the "Link @ Sheraton," its signature communications hub rolling out in Sheraton lobbies this year. Under the agreement, Sheraton will also co-brand and rename the space "The Link @ Sheraton experienced with Microsoft." The partnership is one component of a comprehensive effort to enhance and differentiate the guest experience at Sheraton's 408 hotels across 75 countries, currently rolling out globally.

Sheraton's Link is a unique virtual and physical lobby lounge space that meets the needs of Sheraton's core guests by enabling them to work, relax and remain connected with friends and family during their travels. It offers a unique and convenient online experience, including free Wi-Fi and Internet-enabled computer stations, to allow guests to email, search the Web, review local attractions and even print up boarding passes. Through its relationship with Microsoft, the new, enhanced "Link @ Sheraton experienced with Microsoft" will offer Windows-based computers providing visitors with search, maps, email and information. In addition, many Link computers will also feature webcams, allowing guests to have free video-chats or email video postcards back home. Guests will also have access to televisions, daily newspapers, and food and beverage offerings.

"Our guests are intent on making the most of their travels and we're confident this new partnership with Microsoft will enable Sheraton Hotels & Resorts to provide them with the products, services and tools to keep them connected to what matters most while on the road," said Hoyt H. Harper, II, Senior Vice President for the Sheraton brand. "The Link reflects Sheraton's commitment to deliver popular, unique and unexpected offerings to our guests and is an exciting pillar of Sheraton's comprehensive effort to further differentiate our iconic brand."

"Today's traveler is part of a connected digital community, with instant access to information and technology for work, entertainment and social networking," said Sandra Andrews, U.S. hospitality industry director, Microsoft. "With 'Link @ Sheraton experienced with Microsoft,' Sheraton and Microsoft are helping forge the convergence of the digital lifestyle and work-style in the experiences offered to this new breed of guest."

Currently 66 Sheraton properties around the world feature The Link. Under the Microsoft agreement, Sheraton will roll out the co-branded "The Link @ Sheraton experienced with Microsoft" at more than 300 properties worldwide by the end of 2008.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 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®, Sheraton®, Westin®, Four Points® by Sheraton, W®, Le Méridien® and the recently announced AloftSM and ElementSM Hotels. 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.

(Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance or events and involve risks and uncertainties and other factors that may cause actual results or events to differ materially from those anticipated at the time the forward-looking statements are made. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results and events 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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