Sheraton Hotels and Resorts Forges Global Agreement with International Spa Brand, Nectar(TM)

Spa Concept Customized Exclusively for Sheraton to be Offered at Properties Worldwide, As Part of an Ongoing Effort to Enhance the Brand and Differentiate the Guest Experience

White Plains, N.Y.--(BUSINESS WIRE)--Starwood Hotels & Resorts Worldwide, Inc. and Spatality Holdings, Ltd. announced today that they have entered into a multi-year agreement under which Nectar Spa LLC and its affiliates will make the upscale Nectar Spa brand available at Sheraton properties worldwide beginning in 2009. The new spa experience is part of a brand-wide effort to enhance the iconic Sheraton brand, which includes an investment of over $4 billion in new hotels, upgrading 100 hotels in the U.S. - nearly half its North American portfolio - renovating 50,000 guestrooms and re-designing more than 100 new lobbies.

The Nectar spa brand was developed specifically for the hospitality industry and customized exclusively for the Sheraton brand to offer both business and leisure guests an upscale, approachable spa experience. Nectar's complete program of treatments includes a variety of signature massages, body treatments, facials, manicures/pedicures as well as custom options developed specifically for the Sheraton brand.

Nectar was developed by the international spa management and brand delivery firm, Spatality, as a proprietary concept that offers an experience based on "high design/low ego" and which is uniquely suited to Sheraton. Research reveals that the Sheraton guest values the quality of luxury, but not the pretense often accompanying it. Eight out of 10 Sheraton guests are likely to consider using spa services when traveling, including male guests, the majority of which prefer to visit spas only when traveling.

"Nectar will be an invaluable, welcome addition to the Sheraton guest experience," said Hoyt H. Harper, II, senior vice president for Sheraton. "We know our guests will value an exceptional spa experience with a welcoming atmosphere. With this global agreement, we plan to make spa a cornerstone of the Sheraton brand experience, one that guests will truly embrace as part of their lifestyle."

"We are quite honored that Nectar will play a part in the revitalization of Sheraton, the most recognized hotel brand in the world," said Richard Dusseau, CEO of Spatality Holdings and Nectar LLC. "When we created Nectar, we certainly had the upper upscale hospitality segment in mind, but it was pure serendipity that our brand proposition dovetails so well with Sheraton. The placement of Nectar into Sheraton hotels will help create additional brand loyalty by delivering an exceptional spa experience."

The new relationship with Nectar Spa will offer a significant enhancement for the Sheraton brand. Other notable enhancements that the Sheraton brand is currently implementing include a new lobby environment, re-designed guest rooms and a revolutionary new health and fitness program. Nectar will make the new spa offering available under license/franchise agreements to current and future Sheraton owners.

"Spatality's expertise in the spa field will bolster our ability to help Sheraton properties worldwide create more comfortable and memorable guest experiences," said Mia Kyricos, Director, Spa Development for Starwood. "This relationship also underscores Sheraton's commitment to the business of spa which is increasingly impacting rate and occupancy at upper-upscale hotels worldwide."

Helping guests make connections at more than 400 hotels in 75 countries around the world, Sheraton is revitalizing its iconic brand while continuing its aggressive international expansion by adding 54 hotels and 20,000 guestrooms by 2009. Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 930 properties in approximately 97 countries and 145,000 employees at its owned and managed properties. Starwood Hotels is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis(R), The Luxury Collection(R), W(R), Westin(R), Le Meridien(R), Sheraton(R), Four Points(R) by Sheraton, and the recently launched AloftSM, and ElementSM. Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts.

Spatality is an international spa management and brand delivery company with offices in Denver, Colorado (U.S.A); Bangkok, Thailand; and soon Dubai, U.A.E., offering spa solutions, brands and management services to hoteliers and developers throughout the world. By bringing together key performance indicators used in the hospitality sector, Spatality offers high-yield spa management solutions to the industry and focuses on delivering bottom-line results and enhancing the value of the asset.

The Nectar franchise described in this communication is exclusively a Nectar LLC franchise opportunity. Nectar LLC is not an agent of nor does it act on behalf of Starwood Hotels & Resorts Worldwide, Inc. or any of its affiliates. Neither Starwood Hotels & Resorts Worldwide, Inc. nor any of its affiliates: (a) directly or indirectly offer Nectar franchises; (b) is affiliated with Nectar LLC; or (c) is responsible for the information or other content about Nectar, the spa program and/or Nectar's promises which are contained in this communication, in Nectar's website or otherwise provided by Nectar.

Source: Starwood Hotels & Resorts Worldwide, Inc.

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