Starwood Reports Fourth Quarter and Full Year 2001 Results

Press Release: Starwood Hotels & Resorts Worldwide, Inc.
February 1, 2002
WHITE PLAINS, NY -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT; ``Starwood'' or the ``Company'') yesterday reported results for the fourth quarter and full year 2001.

Fourth Quarter and Full Year Financial Results

As expected, the terrorist attacks on September 11, 2001 continued to have a significant impact on the Company's results as lodging demand declined to unprecedented levels across the United States and internationally.

Fourth Quarter Ended December 31, 2001

Excluding net charges for special items of $80 million in 2001 and a net credit of $1 million in 2000, loss per share was $0.01 in the fourth quarter of 2001 compared to EPS of $0.64 in the corresponding period of 2000, reflecting the dramatic reduction in travel following the events of September 11. Historically, the fourth quarter is the strongest quarter of the year. Including these special items, loss per share in the fourth quarter of 2001 was $0.28 compared to EPS of $0.64 in 2000. Total revenues were down 20.5% to $878 million compared to the same period of 2000, resulting from the softening United States economy and the unprecedented decline in industry-wide demand following the September 11 attacks. Operating income, excluding special items, was $56 million in the fourth quarter of 2001 compared to $290 million in the same period of 2000 and the loss from continuing operations, excluding special items, was $2 million in the fourth quarter of 2001 compared to income of $130 million in the same period of 2000 due to the significant decline in hotel operating results and increased depreciation expense resulting from the continued renovation program and the repositioning of certain hotels, offset in part by cost constraint measures, and reduced interest expense resulting from a reduction in interest rates and the completion of financing transactions in the past year (see Financing section of this release).

While most North America properties reported REVPAR declines, assets in Houston, Indianapolis, New Orleans and Montreal were negatively impacted to a lesser degree. New York, the Company's largest EBITDA contributing city, saw steady month to month recovery as the quarter progressed.

Year Ended December 31, 2001

For the year ended December 31, 2001, total revenues were $3.967 billion compared to $4.345 billion in the same period of 2000. Excluding net charges for special items of $83 million in 2001 and a net credit of $2 million in 2000, EPS was $1.00 for the year ended December 31, 2001 compared to EPS of $1.95 in the corresponding period of 2000. Including these special items, EPS was $0.73 in 2001 compared to $1.96 in 2000. Income from continuing operations, excluding special items, was $205 million in the year ended December 31, 2001 compared to $400 million in the same period of 2000.

Comments from the CEO

Barry S. Sternlicht, Chairman and CEO said, ``After the tragic events of September 11th, we directed our team to focus on improving our core processes and streamlining our organization. In the face of the combined one-two punch of a global recession and a war, fourth quarter results were much as we predicted. On the positive side we produced healthy EBITDA in all of our divisions, easily covering our interest expense by almost 3x, even in these extreme conditions. I am also relatively pleased that at a time when business conditions are unlikely to ever be worse, EBITDA margins at our core Comparable Owned Westin and Sheraton hotels in North America were 26% in the fourth quarter of 2001.

As we begin the new year, we are optimistic that the global economies will firm and a rebound will occur in the second half of 2002. We are poised, with our investments in technology, Six Sigma, and revenue management, to have very powerful positive operating leverage. Despite the harsh business environment and our necessary cost-cutting efforts, our guest satisfaction scores continue to rise across all our brands. At the same time, our market share as measured by REVPAR index increased at our proprietary Same-Store Owned hotel portfolio in North America. Our industry-leading innovations for Westin such as the Heavenly Bed and Heavenly Bath, the emergence of W hotels, the increasing success of our Starwood Preferred Guest program and database CRM initiatives, our internet initiatives, the very successful launch of our two new Westin interval ownership projects in Hawaii and Palm Springs, and the completion of our brand prototype projects, all bode well for future growth rates that we expect can lead the industry.``

Concluding, Mr. Sternlicht said, ``Whether a rebound in the North America and other world economies and therefore travel occurs in the second half of 2002 or not, with the tremendous decline in the number of new hotels being built in the next two to three years, our extremely well located assets should produce substantial increases in EBITDA and cash flow. We are poised for the rebound and excited about our prospects.''

Operating Results

At the Company's Comparable Owned Hotels worldwide, revenues for the fourth quarter of 2001 decreased approximately $198 million to $718 million from $916 million in 2000 and EBITDA decreased approximately $150 million to $170 million from $320 million in 2000. EBITDA at the Company's Comparable Owned Hotels in North America decreased 45.2% to $133 million in the fourth quarter of 2001 when compared to the same period of 2000. The decline in operating results at Comparable Owned Hotels in North America in the fourth quarter of 2001 when compared to 2000 reflects the impact of lower revenue per available room (``REVPAR'') primarily attributable to the September 11 attacks. EBITDA at the Company's Comparable Owned Hotels internationally decreased 51.9% to approximately $37 million in the fourth quarter of 2001 when compared to the same period of 2000 (a 52.5% decrease excluding the favorable effects of foreign exchange).

For the fourth quarter of 2001, REVPAR at Same-Store Owned Hotels worldwide decreased 24.3% when compared to the same period of 2000 as a result of a decline in occupancy rates of 910 basis points to 58.6% and a decline in average daily rate (``ADR'') of 12.6% from the prior year. REVPAR at Same-Store Owned Hotels in North America decreased 23.8% to $85.18 when compared to the same period of 2000 as a result of a decrease in occupancy rates to 59.6% from 67.6% in the prior year, while ADR decreased 13.5% to $142.92. The decrease in ADR was primarily attributable to the mix of customers rather than discounted room rates. The Company's results in North America were negatively impacted by the significant drop in industry-wide lodging demand, resulting primarily from the September 11 attacks, particularly impacting New York, where the Company has seven owned hotels with approximately 3,900 rooms. Internationally, Same-Store Owned Hotel REVPAR decreased 26.2%.

EBITDA margins at Comparable Owned Hotels worldwide decreased to 23.7% in the fourth quarter of 2001 when compared to 34.9% in the same period of 2000. In North America, EBITDA margins at Comparable Owned Hotels decreased to 24.2% in the fourth quarter of 2001 when compared to 34.6% in the same period of 2000. Internationally, EBITDA margins at Comparable Owned Hotels decreased to 22.1% in the fourth quarter of 2001 when compared to 35.9% in the same period of 2000.

During the fourth quarter of 2001, the Company added six management and franchise contracts with approximately 800 rooms. During the year ended December 31, 2001, the Company added 48 new management and franchise contracts with approximately 9,100 rooms.

Starwood Vacation Ownership, Inc. (``SVO'') currently has fifteen interval ownership resorts in its portfolio. SVO is selling vacation ownership interest (``VOI'') inventory at eight resorts and engaged in pre-opening sales at two others currently under construction (Westin Mission Hills Resort Villas in Rancho Mirage, California and Westin Ka`anapali Ocean Resort Villas in Maui, Hawaii). During the fourth quarter, the Company welcomed its first guests to Sheraton's Mountain Vista in Avon, Colorado, which opened in November, and began presales for its Maui property. SVO will begin construction of its fourth Westin-branded interval ownership resort later this year featuring 158 villas located adjacent to the Westin Kierland Resort & Spa in Scottsdale, Arizona which is scheduled to open in late 2002.

Dispositions

The Company continues to review its portfolio for disposition candidates. Earlier this month, the Company announced that it has initiated for the first time the formal sale process for the CIGA portfolio of 25 luxury hotels, land, golf courses and marinas. The Company expects to begin reviewing preliminary indications of interest later in the first quarter. Deutsche Bank, Jones Lang LaSalle Hotels and J.P. Morgan are advising the Company on the disposition of this portfolio and have now begun actively marketing these assets.

Capital

During the fourth quarter of 2001, the Company invested approximately $160 million for capital, primarily at owned hotel assets and VOI construction. Most of this investment spend included the completion of the conversion of the Days Inn Chicago to the W Chicago-Lakeshore (556 rooms), which opened in late October, development of the W New York-Times Square (509 rooms, which opened in late December) as well as the ongoing development of The St. Regis Museum Tower in San Francisco (269 rooms and 102 condominiums). Additionally, design and construction continued at the W-Mexico City (228 rooms) joint venture.

Financing

During the fourth quarter of 2001, the Company successfully amended certain terms of its Senior Credit Facility. The amendment gives the Company greater financial flexibility by modifying various financial covenants until the expiration of the facility in early 2003. The amended provisions include adjustments to the Company's combined leverage ratio and interest coverage ratio as well as modifications to near-term amortization payments.

On December 31, 2001, the Company had total debt of $5.559 billion and cash and cash equivalents of $157 million. At the end of the fourth quarter of 2001, the Company's debt was approximately 56% fixed rate and 44% floating rate and its weighted average maturity was 4.5 years. As of December 31, 2001, the Company had cash and availability under its domestic and international revolving credit facilities of approximately $644 million and the Company's debt had a weighted average interest rate of 5.10%. In December 2001, the Company entered into an 18-month 450 million Euro loan with an interest rate of Euribor plus 195 basis points. The proceeds of the Euro loan were drawn down in two tranches; the first 270 million Euros was drawn down in December and used to repay the previously outstanding 270 million Euro facility and the remaining 180 million Euros was drawn down in January 2002 and the proceeds were used to pay down the Company's domestic revolving credit facility.

The Company continues to monitor the credit markets and, in light of the possibility of zero coupon convertible senior notes being put back to the Company at a price of approximately $200 million in May 2002 as well as the 2003 maturities of certain existing facilities, expects to access the markets this year as well as enter into a new senior bank facility.

The Company has provided loan guarantees related to a very limited number of managed hotels. As of December 31, 2001, the Company had approximately $160 million of such guarantees primarily related to the 400-room St. Regis Monarch Beach which opened in July 2001, the 700-room Westin Charlotte which is under construction and anticipated to open in November 2003 and a joint and several guarantee on the 750-room Westin Kierland with other third parties including the project developer and a pension fund. All three projects are well capitalized.

Share Repurchase

For the year ended December 31, 2001, the Company repurchased 3,245,800 shares at a total cost of approximately $96 million. No additional shares were repurchased in the fourth quarter. At December 31, 2001, Starwood had approximately 201 million shares outstanding (including partnership units and exchangeable preferred shares).

Dividend

In January 2002, Starwood Hotels & Resorts paid a fourth quarter dividend of $0.20 per share, representing a 16% increase over the prior year quarterly dividend. In 2002, the Company intends to shift from a quarterly dividend to an annual dividend. The final determination of the amount of the dividend will be subject to economic and financial considerations and Board approval in the fourth quarter of 2002.

Special Items

The Company recorded net charges of $80 million (pretax) for special items in the fourth quarter of 2001 when compared to a net credit of $1 million in the same period of 2000.

As discussed in the Company's third quarter 2001 earnings release and Form 10-Q, immediately following the events of September 11 and the resulting decline in industry-wide demand, the Company began analyzing and implementing a cost reduction plan and began reviewing the carrying value of certain assets for potential impairment. As a result, in the fourth quarter of 2001, the Company recorded a net $57 million loss on asset dispositions and restructuring and other special charges aggregating approximately $47 million, primarily resulting from the events of September 11. These special items consisted primarily of impairments of certain investments and other assets (approximately $62 million); bad debts expense associated with receivables no longer deemed collectible (approximately $17 million); and severance and retention costs (approximately $25 million). Approximately $14 million of these special items represent cash charges, with the remaining amount being non-cash. In addition, during the fourth quarter of 2001, the Company recorded a non-cash foreign exchange gain of approximately $24 million (pretax), which reduced selling, general, administrative and other costs, resulting from the devaluation of the Argentine Peso. The gain represents the mark-to-market, in accordance with Statement of Financial Accounting Standards No. 52, of a U.S. dollar intercompany receivable in Argentina that resulted from a cash repatriation strategy.

For the year ended December 31, 2001, net charges for special items aggregated $83 million compared to a net credit of $2 million in the same period of 2000.

The following represents a reconciliation of income (loss) from continuing operations before special items to income (loss) from continuing operations after special items:


                           Fourth Quarter Ended        Year Ended
                             December 31,              December 31,
                           -------------------------------------------
                           2001           2000      2001        2000
                           -------------------------------------------
Income (loss) from
 continuing operations
 before special items      $(2)           $130      $205        $400
                           -------------------------------------------

Special items:
 Impairment of assets(a)    (79)             1       (80)          2
Severance and retention
 costs(b)                   (25)            --       (27)         --
Foreign exchange gain
 from Argentina(c)           24             --        24          --
                           -------------------------------------------
Total special
 items - pretax             (80)             1       (83)          2
Income tax benefit
 (expense) - 35%
 incremental tax rate        28             --        29          (1)
                           -------------------------------------------
Total special items -
 after-tax                  (52)            1        (54)          1

Income (loss) from continuing
 operations                $(54)          $131       $151        $401
                           ===========================================

EPS before special items   $(0.01)       $0.64      $1.00       $1.95
EPS                        $(0.28)       $0.64      $0.73       $1.96


(a)  For the fourth quarter, $57 million reflected in gain (loss) on
     asset dispositions and $22 million reflected in restructuring and
     other special charges.

(b)  Reflected in restructuring and other special charges.

(c)  Reflected in selling, general, administrative and other expenses.


Future Performance 

All comments in the following paragraphs and certain comments in this release above are deemed to be forward-looking statements. These statements reflect expectations of the Company's performance given its current base of assets and its current understanding of external economic and political environments. Actual results may differ materially.

The continued economic weakness in North America and Europe both as a result of the September 11 attacks and the generally slowing economic activity prior to and after September 11, combined with the current economic and political environment in Argentina and other parts of the world and their consequent impact on travel in their respective regions and on the rest of the world, make it difficult to predict results with any degree of precision.

Assuming an economic recovery in the second half of 2002 resulting in annual REVPAR flat with the 2001 level, the Company expects EBITDA of approximately $1.250 billion and EPS of approximately $1.30, including approximately $0.30 per share from the new accounting rules pertaining to goodwill and intangible assets. Based on these assumptions, approximate quarterly EPS for 2002 is expected to be as follows:

                                               2002
                                             -----------


     First quarter                              $0.05
     Second quarter                              0.40
     Third quarter                               0.42
     Fourth quarter                              0.43
                                               ---------
     Full year                                  $1.30
                                              ===========

Starwood conducted a conference call to discuss the fourth quarter financial results at 10:30 a.m. (ET) yesterday. The conference call was available through simultaneous webcast in the Investor Relations/Press Releases section of the Company's website at www.starwood.com. A replay of the conference call will also be available from 1:30 p.m. (ET) through 8:00 p.m. (ET) Thursday, February 7, on both the Company's website and via telephone replay at 719-457-0820 (access code: 751959).

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations excluding special items. All references to Comparable Owned Hotels reflect the Company's owned, leased and consolidated joint venture hotels, excluding hotels sold during 2000 and 2001 and hotels without comparable prior year results. All references to Same-Store Owned Hotels reflect the Company's owned, leased and consolidated joint venture hotels, excluding hotels under significant renovation or for which comparable results are not available.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in 80 countries and 110,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchiser of hotels and resorts including: St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points® by Sheraton and W® brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership.

(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. General economic conditions including the duration and severity of the current economic downturn in the United States and the terrorist attacks on New York and Washington D.C. and their aftermath, business and financing conditions, cyclicality of the real estate and the hotel and leisure business, domestic and international political conditions, competition, governmental and regulatory actions and other circumstances and uncertainties may affect future results, performance and achievements. 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 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.)

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


                                               Three Months Ended
                                                  December 31,
                                          2001         2000      %
                                                              Variance

Revenues
Owned, leased and consolidated joint
 venture hotels                           $746         $919     (19)%
Other hotel and leisure(a)                 132          186     (29)
                                         -----------------------------
                                           878        1,105     (21)

Costs and Expenses
 Owned, leased and consolidated
  joint venture hotels                     575          599       4
Selling, general, administrative
 and other(b)                               88           91       3
Restructuring and other
 special charges, net                       47           --      --
Depreciation                               112          104      (8)
Amortization                                23           21     (10)
                                          ----------------------------
                                           845          815      (4)

Operating income                            33          290     (89)
Interest expense, net of interest income   (77)        (103)     25
Gain (loss) on asset dispositions, net     (57)           1      --
                                          ----------------------------
                                           (101)        188    (154)

Income tax benefit (expense)                 47         (56)    184
Minority equity in net income                --          (1)     --
Income (loss) from continuing operations    (54)        131    (141)
Discontinued operations:
 Gain on dispositions, net of tax            --          --      --
Extraordinary item, net of tax               --          --      --
Net income (loss)                          $(54)       $131    (141)%
                                           ===========================
Earnings Per Share -- Basic
Continuing operations                     $(0.28)     $0.65    (143)%
Discontinued operations                       --         --      --
Extraordinary item                            --         --      --
Net income (loss)                         $(0.28)     $0.65    (143)%
                                          ============================

Earnings Per Share -- Diluted
Continuing operations                      $(0.28)    $0.64    (144)%
Discontinued operations                        --        --      --
Extraordinary item                             --        --      --
Net income (loss)                          $(0.28)    $0.64    (144)%
                                          ============================

Weighted average number of Shares             198      201
                                              ===      ===
Weighted average number of Shares assuming    198      205
dilution                                      ===      ===

Reconciliation of Operating Income to EBITDA(c)
Operating income                              $33     $290     (89)%
Depreciation(d)                               119      114       4
Amortization(d)                                23       21      10
Interest expense of unconsolidated joint
 ventures                                       6        2     200
Interest income                                 2        5     (60)
Restructuring and other special charges, net   47       --      --
Foreign exchange gain from Argentina          (24)      --      --
EBITDA                                       $206     $432     (52)%

----------------------------------------------------------------------

                                                Year Ended
                                                December 31,
                                             2001      2000      %
                                                             Variance
Revenues
Owned, leased and consolidated joint
 venture hotels                             $3,343    $3,659    (9)%
Other hotel and leisure(a)                     624       686    (9)
                                            --------------------------
                                             3,967     4,345    (9)

Costs and Expenses
Owned, leased and consolidated joint
 venture hotels                              2,365     2,433     3
Selling, general, administrative and
 other(b)                                      411       403    (2)
Restructuring and other special
 charges, net                                   50        --     --
Depreciation                                   433       391    (11)
Amortization                                    93        90     (3)
                                             -------------------------
                                             3,352      3,317    (1)

Operating income                               615      1,028    (40)
Interest expense, net of interest income      (358)     (420)     15
Gain (loss) on asset dispositions, net        (57)         2      --
                                             -------------------------
                                               200       610      (67)

Income tax benefit (expense)                   (46)     (201)      77
Minority equity in net income                   (3)       (8)      63
Income (loss) from continuing operations        151      401     (62)
Discontinued operations:
 Gain on dispositions, net of tax                --        5      --
 Extraordinary item, net of tax                 (6)       (3)   (100)
Net income (loss)                              $145      $403   (64)%
                                             =========================

Earnings Per Share -- Basic
Continuing operations                         $0.75     $1.99   (62)%
Discontinued operations                          --      0.02    --
Extraordinary item                            (0.03)    (0.01)  (200)
Net income (loss)                             $0.72     $2.00   (64)%
                                             =========================

Earnings Per Share -- Diluted
Continuing operations                         $0.73     $1.96   (63)%
Discontinued operations                          --      0.02    --
Extraordinary item                            (0.03)    (0.01)  (200)
Net income (loss)                             $0.70     $1.97   (64)%
                                              ========================

Weighted average number of Shares                201     202
                                                 ===     ===
Weighted average number of Shares assuming
 dilution                                        206     205
========== ==========                            ===     ===

Reconciliation of Operating Income to EBITDA(c)
Operating income                                $615    $1,028  (40)%
Depreciation(d)                                  460       418   10
Amortization(d)                                   93        90    3
Interest expense of unconsolidated joint ventures 25        18   39
Interest income                                   11        19  (42)
Restructuring and other special charges, net      50        --   --
Foreign exchange gain from Argentina             (24)       --   --
EBITDA                                         $1,230   $1,573  (22)%
----------------------------------------------------------------------


(a)  Other hotel and leisure revenues include management and franchise
     fees earned from third party hotel owners, the Company's interest
     in unconsolidated joint ventures and the sale and financing of
     VOIs.

(b)  Selling, general, administrative and other expenses includes the
     cost of sales of VOIs and other costs of timeshare operations.

(c)  EBITDA is defined as income before interest expense, income tax
     expense and depreciation and amortization. Special items and
     gains and losses from sales of real estate and investments are
     also excluded from EBITDA as these items do not impact operating
     results on a recurring basis. Management considers EBITDA to be
     one measure of the cash flows from operations of the Company
     before debt service that provides a relevant basis for
     comparison, and EBITDA is presented to assist investors in
     analyzing the performance of the Company. This information should
     not be considered as an alternative to any measure of performance
     as promulgated under accounting principles generally accepted in
     the United States, nor should it be considered as an indicator of
     the overall financial performance of the Company. The Company's
     calculation of EBITDA may be different from the calculation used
     by other companies and, therefore, comparability may be limited.

(d)  Includes Starwood's share of depreciation and amortization
     expense of unconsolidated joint ventures.


               STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

                  UNAUDITED BALANCE SHEET INFORMATION
                             (In millions)

                                                   December 31,
                                                      2001
                                                 ---------------

Total assets                                         $12,461
Cash and cash equivalents                               $157
Total debt(a)                                         $5,559
Shares outstanding(b)                                    201

(a) Excludes Starwood's share of unconsolidated joint venture debt
    aggregating approximately $300 million.

(b) Shares outstanding include partnership units and exchangeable
    preferred shares.

                  STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                     Hotel Results - Same Store (1)
               For the Three Months Ended December 31, 2001


                      WORLDWIDE              NORTH AMERICA
                  2001     2000    Var.      2001    2000     Var
                  ----------------------------------------------------

                      157 Hotels                 111 Hotels
                  ----------------------------------------------------
OWNED HOTELS
 RevPAR($)        83.84    110.80  -24.3%    85.18     111.74   -23.8%
 ADR ($)         143.02    163.68  -12.6%   142.92     165.20   -13.5%
 OCCUPANCY (%)    58.6%     67.7%    -9.1    59.6%      67.6%    -8.0

                  ----------------------------------------------------
                         67                          43
                  ----------------------------------------------------
SHERATON
 RevPAR ($)       73.36     99.81   -26.5%    76.70     104.89  -26.9%
 ADR ($)         127.75    148.59   -14.0%   130.57     154.56  -15.5%
 OCCUPANCY (%)    57.4%     67.2%    -9.8      58.7%      67.9%   -9.2

                  ----------------------------------------------------
                         35                           23
                  ----------------------------------------------------
WESTIN
 RevPAR ($)       85.18     107.62   -20.9%    81.66     100.10 -18.4%
 ADR ($)         141.17     155.55    -9.2%   132.23     145.41  -9.1%
 OCCUPANCY (%)    60.3%      69.2%    -8.9     61.8%      68.8%  -7.0

                  ----------------------------------------------------
                          14                           5
                  ----------------------------------------------------

LUXURY COLLECTION
 RevPAR ($)      178.14      229.23   -22.3%   213.26    266.50 -20.0%
 ADR ($)         304.24      332.01    -8.4%   360.97    399.52  -9.6%
 OCCUPANCY (%)    58.6%       69.0%    -10.4    59.1%     66.7%   -7.6

                 -----------------------------------------------------
                          10                            10
                 -----------------------------------------------------
W
 RevPAR ($)      121.86      172.50   -29.4%   121.86    172.50 -29.4%
 ADR ($)         189.76      245.83   -22.8%   189.76    245.83 -22.8%
 OCCUPANCY (%)    64.2%       70.2%    -6.0     64.2%     70.2%  -6.0

                ------------------------------------------------------
                          31                             30
                ------------------------------------------------------
OTHER
 RevPAR ($)      63.13       80.55    -21.6%    64.48     82.15 -21.5%
 ADR ($)        110.42      123.54    -10.6%   114.37    127.69 -10.4%
 OCCUPANCY (%)   57.2%       65.2%     -8.0     56.4%      64.3% -7.9


                                               INTERNATIONAL(2)
                                       2001        2000        Var.
                                  ------------------------------------
                                                46 Hotels
                                  ------------------------------------
OWNED HOTELS
 RevPAR ($)                           79.65       107.86      -26.2%
 ADR ($)                             143.34       158.95       -9.8%
 OCCUPANCY (%)                        55.6%        67.9%      -12.3

                                  ------------------------------------
                                                 24
                                  ------------------------------------
SHERATON
 RevPAR ($)                            66.30        89.15     -25.6%
 ADR ($)                              121.35       135.63     -10.5%
 OCCUPANCY (%)                         54.6%        65.7%      -11.1

                                  ------------------------------------
                                                  12
                                  ------------------------------------
WESTIN
 RevPAR ($)                            99.21       137.20      -27.7%
 ADR ($)                              181.40       194.41       -6.7%
 OCCUPANCY (%)                          54.7%        70.6%      -15.9

                                  ------------------------------------
                                                   9
                                  ------------------------------------
LUXURY COLLECTION
 RevPAR ($)                           135.32       183.29     -26.2%
 ADR ($)                              233.68       254.82      -8.3%
 OCCUPANCY (%)                         57.9%        71.9%      -14.0

                                      --------------------------------
                                                      1
                                      --------------------------------
OTHER
 RevPAR ($)                            48.11        62.64      -23.2%
 ADR ($)                               72.80        83.74      -13.1%
 OCCUPANCY (%)                          66.1%        74.8%       -8.7

(1) Hotel Results exclude 2 hotel under significant renovation or
    without comparable results, 6 hotels without prior year results
    and 5 hotels sold during 2000 and 2001.

(2) See next page for breakdown by division.

                STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                     Hotel Results - Same Store (1)
               For the Three Months Ended December 31, 2001

                            EUROPE                 LATIN AMERICA
                   2001      2000    Var.     2001     2000      Var.
                   ---------------------------------------------------
                           30 Hotels                 13 Hotels
                   ---------------------------------------------------
OWNED HOTELS
 RevPAR ($)        102.78   131.82   -22.0%   56.12    86.77    -35.3%
 ADR ($)           179.05   186.59   -4.0%   110.16   139.15    -20.8%
 OCCUPANCY (%)      57.4%    70.6%   -13.2    50.9%    62.4%    -11.5

                   ---------------------------------------------------
                             12                           10
                   ---------------------------------------------------
SHERATON
 RevPAR ($)        81.70     98.12   -16.7%   54.72    83.50   -34.5%
 ADR ($)          139.07    139.80    -0.5%  108.86   137.60   -20.9%
 OCCUPANCY (%)     58.7%     70.2%   -11.5    50.3%    60.7%   -10.4

                   ---------------------------------------------------
                               9                           3
                   ---------------------------------------------------
WESTIN
 RevPAR ($)       114.52     151.75  -24.5%   63.19    103.07   -38.7%
 ADR ($)          208.84     215.19   -3.0%  116.25    145.80   -20.3%
 OCCUPANCY (%)     54.8%      70.5%  -15.7    54.4%      70.7%   -16.3

                   ---------------------------------------------------
                                       9
                   ---------------------------------------------------

LUXURY COLLECTION
 RevPAR ($)        135.32     183.29  -26.2%
 ADR ($)           233.68     254.82   -8.3%
 OCCUPANCY (%)      57.9%      71.9%   -14.0


                                           ASIA PACIFIC
                                    2001       2000      Var.
                                  ------------------------------------
                                              3 Hotels
                                  ------------------------------------
OWNED HOTELS
 RevPAR ($)                         57.87       74.19      -22.0%
 ADR ($)                            91.82      100.14       -8.3%
 OCCUPANCY (%)                       63.0%       74.1%      -11.1


                                  ------------------------------------
                                                   2
                                  ------------------------------------
SHERATON
 RevPAR ($)                          65.38       82.95       -21.2%
 ADR ($)                            107.76      112.80        -4.5%
 OCCUPANCY (%)                       60.7%       73.5%        -12.8

                                  ------------------------------------
                                                  1
                                  -----------------------------------
OTHER
 RevPAR ($)                          48.11       62.64      -23.2%
 ADR ($)                             72.80       83.74      -13.1%
 OCCUPANCY (%)                       66.1%       74.8%        -8.7

(1) Hotel Results exclude 2 hotel under significant renovation or
    without comparable results, 6 hotels without prior year results
    and 5 hotels sold during 2000 and 2001.

                 STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                        Hotel Results - Comparable (1)
                 For the Three Months Ended December 31, 2001
                           UNAUDITED ($ thousands)

                            WORLDWIDE               NORTH AMERICA
                    2001       2000    Var.    2001     2000     Var.
                    --------------------------------------------------
                           159 Hotels               112 Hotels
                    --------------------------------------------------
OWNED HOTELS
 TOTAL REVENUE     717,953    915,545 -21.6%  550,341   700,941 -21.5%
 TOTAL EBITDA      170,058    319,647 -46.8%  133,014   242,644 -45.2%
 MARGIN %            23.7%      34.9% -11.2     24.2%     34.6% -10.4

                    --------------------------------------------------
                               68                       43
                    --------------------------------------------------
SHERATON
 REVENUE           291,368   378,996  -23.1%  200,543   263,149 -23.8%
 EBITDA             75,277   141,506  -46.8%   54,102    98,737 -45.2%
 MARGIN %            25.8%     37.3%  -11.5    27.0%     37.5%  -10.5

                    --------------------------------------------------
                               35                        23
                    --------------------------------------------------
WESTIN
 REVENUE           191,003  237,884   -19.7%  145,904   178,937 -18.5%
 EBITDA             45,358   77,446   -41.4%   35,106    56,050 -37.4%
 MARGIN %            23.7%    32.6%    -8.9    24.1%      31.3%  -7.2

                   ---------------------------------------------------
                               14                          5
                   ---------------------------------------------------
LUXURY COLLECTION
 REVENUE            96,410  122,035    -21.0%  68,879    87,467 -21.3%
 EBITDA             22,524   42,521    -47.0%  17,053    30,057 -43.3%
 MARGIN %            23.4%   34.8%     -11.4    24.8%     34.4%   -9.6

                    --------------------------------------------------
                               11                          11
                    --------------------------------------------------
W
 REVENUE            62,013  83,614     -25.8%  62,013    83,614 -25.8%
 EBITDA             11,180  30,507     -63.4%  11,180    30,507 -63.4%
 MARGIN %            18.0%   36.5%     -18.5    18.0%     36.5% -18.5

                    --------------------------------------------------
                               31                          30
                    --------------------------------------------------

OTHER
 REVENUE            77,159  93,016     -17.0%   73,002  87,774  -16.8%
 EBITDA             15,719  27,667     -43.2%   15,573  27,293  -42.9%
 MARGIN %            20.4%   29.7%      -9.3     21.3%  31.1%    -9.8


                                            INTERNATIONAL(2)
                                   2001           2000        Var.

                                   -----------------------------------
                                                47 Hotels
                                   -----------------------------------
OWNED HOTELS
 TOTAL REVENUE                     167,612      214,604      -21.9%
 TOTAL EBITDA                       37,044       77,003      -51.9%
  MARGIN %                           22.1%        35.9%       -13.8

                                    ----------------------------------
                                                     25
                                     ---------------------------------
SHERATON
 REVENUE                             90,825      115,847       -21.6%
 EBITDA                              21,175       42,769       -50.5%
  MARGIN %                            23.3%        36.9%        -13.6

                                     ---------------------------------
                                                     12
                                     ---------------------------------
WESTIN
 REVENUE                              45,099      58,947       -23.5%
 EBITDA                               10,252      21,396       -52.1%
  MARGIN %                             22.7%       36.3%       -13.6

                                     ---------------------------------
                                                       9
                                     ---------------------------------
LUXURY COLLECTION
 REVENUE                              27,531      34,568        -20.4%
 EBITDA                                5,471      12,464        -56.1%
  MARGIN %                             19.9%       36.1%        -16.2

                                     ---------------------------------
                                                       1
                                     ---------------------------------
OTHER
 REVENUE                               4,157       5,242        -20.7%
 EBITDA                                  146         374        -61.0%
  MARGIN %                              3.5%         7.1%        -3.6


(1) Hotel Results exclude 6 hotels without prior year results and 5
    hotels sold during 2000 and 2001.

(2) See next page for breakdown by division.

                 STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                        Hotel Results - Comparable (1)
                 For the Three Months Ended December 31, 2001
                           UNAUDITED ($ thousands)


                               EUROPE                 LATIN AMERICA
                       2001     2000      Var.    2001    2000    Var.
                       -----------------------------------------------
                              30 Hotels                13 Hotels
                       -----------------------------------------------
OWNED HOTELS
 TOTAL REVENUE        104,772  128,579   -18.5%   47,732 68,791 -30.6%
 TOTAL EBITDA          21,234   42,119   -49.6%   13,110 31,334 -58.2%
  MARGIN %              20.3%    32.8%   -12.5     27.5%  45.5%  -18.0

                      ------------------------------------------------
                                 12                       10
                      ------------------------------------------------
SHERATON
 REVENUE              41,766   49,863    -16.2%   38,108 53,992 -29.4%
 EBITDA                8,420   14,957    -43.7%   10,201 24,636 -58.6%
  MARGIN %             20.2%    30.0%     -9.8     26.8%  45.6%  -18.8

                      ------------------------------------------------
                                  9                         3
                      ------------------------------------------------

WESTIN
 REVENUE              35,475   44,148    -19.6%   9,624  14,799 -35.0%
 EBITDA                7,343   14,698    -50.0%   2,909   6,698 -56.6%
  MARGIN %             20.7%   33.3%     -12.6    30.2%   45.3%  -15.1

                       ---------------------------------
                                  9
                       ----------------------------------

LUXURY COLLECTION
 REVENUE               27,531  34,568    -20.4%
 EBITDA                 5,471  12,464    -56.1%
  MARGIN %              19.9%   36.1%    -16.2


                                                  ASIA PACIFIC
                                        2001        2000        Var.
                                     ---------------------------------
                                                    4 Hotels
                                     ---------------------------------
OWNED HOTELS
 TOTAL REVENUE                         15,108      17,234      -12.3%
 TOTAL EBITDA                           2,700       3,550      -23.9%
  MARGIN %                              17.9%       20.6%        -2.7

                                     ---------------------------------
                                                     3
                                     ---------------------------------

SHERATON
 REVENUE                                 10,951     11,992       -8.7%
 EBITDA                                   2,554      3,176      -19.6%
  MARGIN %                                23.3%      26.5%        -3.2

                                     ---------------------------------
                                                      1
                                     ---------------------------------

OTHER
 REVENUE                                 4,157       5,242      -20.7%
 EBITDA                                    146         374      -61.0%
  MARGIN %                                3.5%        7.1%        -3.6


(1) Hotel Results exclude 6 hotels without prior year results and
    5 hotels sold during 2000 and 2001.


                    STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                        Hotel Results - Same Store (1)
                      For the Year Ended December 31, 2001


                                WORLDWIDE          NORTH AMERICA
                      2001        2000    Var.  2001    2000     Var.
                      ------------------------------------------------
                               155 Hotels             110 Hotels
                      ------------------------------------------------
OWNED HOTELS
 RevPAR ($)           101.98    115.01   -11.3% 100.27  113.81  -11.9%
 ADR ($)              156.73    161.59    -3.0% 152.26  157.44   -3.3%
 OCCUPANCY (%)         65.1%     71.2%    -6.1   65.9%   72.3%   -6.4

                     -------------------------------------------------
                                  66                      42
                     -------------------------------------------------
SHERATON
 RevPAR ($)           86.65     101.05   -14.3%  90.51   105.37 -14.1%
 ADR ($)             136.64     144.83    -5.7% 139.46   146.91  -5.1%
 OCCUPANCY (%)        63.4%      69.8%    -6.4   64.9%    71.7%  -6.8

                     -------------------------------------------------
                                  35                      23
                     -------------------------------------------------
WESTIN
 RevPAR ($)          108.42     116.14    -6.6% 100.65   107.64  -6.5%
 ADR ($)             156.77     157.33    -0.4% 144.36   144.94  -0.4%
 OCCUPANCY (%)        69.2%      73.8%    -4.6   69.7%    74.3%  -4.6

                     -------------------------------------------------
                                  14                       5
                     -------------------------------------------------

LUXURY COLLECTION
 RevPAR ($)          223.73     239.73    -6.7% 234.00   261.73 -10.6%
 ADR ($)             339.89     336.47     1.0% 358.18   359.69 -0.4%
 OCCUPANCY (%)        65.8%     71.2%     -5.4   65.3%    72.8%  -7.5

                      ------------------------------------------------
                                  10                       10
                      ------------------------------------------------
W
 RevPAR ($)          135.34    161.96     -16.4% 135.34  161.96 -16.4%
 ADR ($)             204.65    219.60     -6.8%  204.65  219.60  -6.8%
 OCCUPANCY (%)        66.1%     73.8%      -7.7   66.1%  73.8%   -7.7

                     -------------------------------------------------
                                  30                       30
                     -------------------------------------------------
OTHER
 RevPAR ($)          75.52     86.51      -12.7%  75.52   86.51 -12.7%
 ADR ($)            121.43    123.92       -2.0% 121.43  123.92  -2.0%
 OCCUPANCY (%)       62.2%     69.8%       -7.6   62.2%   69.8%  -7.6


                                           INTERNATIONAL(2)
                                     2001      2000         Var.
                                  ------------------------------------
                                              45 Hotels
                                  ------------------------------------

OWNED HOTELS
 RevPAR ($)                         107.47       118.86       -9.6%
 ADR ($)                            171.87       175.87       -2.3%
 OCCUPANCY (%)                       62.5%        67.6%       -5.1

                                  ------------------------------------
                                                    24
                                  ------------------------------------
SHERATON
 RevPAR ($)                          78.65        92.16      -14.7%
 ADR ($)                            130.36       140.18       -7.0%
 OCCUPANCY (%)                       60.3%        65.7%       -5.4

                                  ------------------------------------
                                                    12
                                  ------------------------------------

WESTIN
 RevPAR ($)                           138.61       149.66      -7.4%
 ADR ($)                              207.01       207.64      -0.3%
 OCCUPANCY (%)                         67.0%        72.1%       -5.1

                                  ------------------------------------
                                                      9
                                  ------------------------------------
LUXURY COLLECTION
 RevPAR ($)                           211.82       213.98      -1.0%
 ADR ($)                              319.02       308.00       3.6%
 OCCUPANCY (%)                         66.4%        69.5%       -3.1

(1) Hotel Results exclude 2 hotel under significant renovation or
    without comparable results, 8 hotels without prior year results
    and 10 hotels sold during 2000 and 2001.

(2) See next page for breakdown by division.


                    STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                        Hotel Results - Same Store (1)
                      For the Year Ended December 31, 2001


                                 EUROPE              LATIN AMERICA
                         2001     2000     Var.  2001    2000     Var.
                         ---------------------------------------------
                              30 Hotels               13 Hotels
                         ---------------------------------------------
OWNED HOTELS
 RevPAR ($)             138.93   146.23   -5.0%  71.71   87.46  -18.0%
 ADR ($)                210.11   206.16    1.9% 125.28  139.42  -10.1%
 OCCUPANCY (%)           66.1%    70.9%    -4.8  57.2%   62.7%   -5.5

                         ---------------------------------------------
                                 12                        10
                         ---------------------------------------------

SHERATON
 RevPAR ($)              95.95   102.75   -6.6%  66.86   83.75  -20.2%
 ADR ($)                144.90   145.58   -0.5% 122.13  137.23  -11.0%
 OCCUPANCY (%)           66.2%    70.6%   -4.4   54.7%   61.0%   -6.3

                        ----------------------------------------------
                                  9                          3
                        ----------------------------------------------
WESTIN
 RevPAR ($)             156.16   169.63   -7.9%  96.19   105.34  -8.7%
 ADR ($)                237.42   233.68    1.6% 137.75   148.50  -7.2%
 OCCUPANCY (%)           65.8%    72.6%   -6.8   69.8%   70.9%   -1.1

                         ------------------------
                                   9
                         ------------------------
LUXURY COLLECTION
 RevPAR ($)              211.82  213.98    -1.0%
 ADR ($)                 319.02  308.00     3.6%
 OCCUPANCY (%)           66.4%    69.5%     -3.1


                                             ASIA PACIFIC

                                       2001      2000       Var.
                                   -----------------------------------
                                                2 Hotels
                                   -----------------------------------
OWNED HOTELS
 RevPAR ($)                           70.61        92.91     -24.0%
 ADR ($)                             107.96       132.08     -18.3%
 OCCUPANCY (%)                        65.4%        70.3%       -4.9

                                   -----------------------------------
                                                    2
                                   -----------------------------------
SHERATON
 RevPAR ($)                           70.61        92.91      -24.0%
 ADR ($)                             107.96       132.08      -18.3%
 OCCUPANCY (%)                        65.4%        70.3%       -4.9


(1) Hotel Results exclude 2 hotel under significant renovation or
    without comparable results, 8 hotels without prior year results
    and 10 hotels sold during 2000 and 2001.


                    STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                        Hotel Results - Comparable (1)
                      For the Year Ended December 31, 2001
                              UNAUDITED ($ thousands)


                              WORLDWIDE           NORTH AMERICA
                 2001      2000      Var.   2001      2000      Var.
             ---------------------------------------------------------
                        157 Hotels                 111 Hotels
             ---------------------------------------------------------
OWNED HOTELS
 TOTAL
  REVENUE     3,210,794  3,601,084 -10.8% 2,399,816  2,715,882  -11.6%
 TOTAL EBITDA   958,184  1,213,656 -21.0%   696,416    905,106  -23.1%
  MARGIN %        29.8%      33.7%  -3.9      29.0%      33.3%   -4.3

              --------------------------------------------------------
                                67                       42
              --------------------------------------------------------
SHERATON
 REVENUE      1,276,808 1,464,263  -12.8%   871,384    996,645  -12.6%
 EBITDA         384,245   503,685  -23.7%   263,371    346,499  -24.0%
  MARGIN %        30.1%    34.4%    -4.3     30.2%      34.8%    -4.6

              --------------------------------------------------------
                                35                       23
              --------------------------------------------------------
WESTIN
 REVENUE        907,839  973,796   -6.8%    669,181    723,258   -7.5%
 EBITDA         275,215  318,056   -13.5%   194,700    227,865  -14.6%
  MARGIN %       30.3%    32.7%     -2.4      29.1%     31.5%    -2.4

              --------------------------------------------------------
                                14                        5
              --------------------------------------------------------

LUXURY COLLECTION
 REVENUE       460,914   499,046    -7.6%   294,018    332,000  -11.4%
 EBITDA        147,094   169,839    -13.4%   86,715    108,666  -20.2%
  MARGIN %      31.9%      34.0%    -2.1     29.5%      32.7%    -3.2

              --------------------------------------------------------
                                11                        11
              --------------------------------------------------------
W
 REVENUE       250,408    313,491   -20.1%   250,408    313,491 -20.1%
 EBITDA         63,666    108,651   -41.4%    63,666    108,651 -41.4%
  MARGIN %       25.4%      34.7%    -9.3      25.4%      34.7%  -9.3

              --------------------------------------------------------
                                30                         30
              --------------------------------------------------------

OTHER
 REVENUE       314,825   350,488    -10.2%   314,825    350,488 -10.2%
 EBITDA         87,964   113,425    -22.4%    87,964    113,425 -22.4%
  MARGIN %       27.9%     32.4%     -4.5      27.9%      32.4%  -4.5


                                           INTERNATIONAL(2)
                                        2001        2000        Var.
                                      --------------------------------
                                                    46 Hotels
                                      --------------------------------
OWNED HOTELS
 TOTAL REVENUE                        810,978      885,202       -8.4%
 TOTAL EBITDA                         261,768      308,550      -15.2%
  MARGIN %                              32.3%        34.9%        -2.6

                                      --------------------------------
                                                       25
                                      --------------------------------
SHERATON
 REVENUE                               405,424     467,618      -13.3%
 EBITDA                                120,874     157,186      -23.1%
  MARGIN %                               29.8%       33.6%        -3.8

                                      --------------------------------
                                                       12
                                      --------------------------------
WESTIN
 REVENUE                                238,658     250,538      -4.7%
 EBITDA                                  80,515      90,191     -10.7%
  MARGIN %                                33.7%       36.0%      -2.3

                                      --------------------------------
                                                        9
                                      --------------------------------
LUXURY COLLECTION
 REVENUE                                166,896     167,046      -0.1%
 EBITDA                                  60,379      61,173      -1.3%
  MARGIN %                                36.2%       36.6%       -0.4


(1) Hotel Results exclude 8 hotels without prior year results and
    10 hotels sold during 2000 and 2001.

(2) See next page for breakdown by division.


                STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                    Hotel Results - Comparable (1)
                 For the Year Ended December 31, 2001
                        UNAUDITED ($ thousands)

                          EUROPE               LATIN AMERICA

                  2001     2000    Var.     2001      2000    Var.

                 -----------------------------------------------------
                       30 Hotels                 13 Hotels
                 -----------------------------------------------------

OWNED HOTELS
TOTAL REVENUE     541,594  561,018   -3.5%   226,528  267,607  -15.4%
TOTAL EBITDA      166,748  181,458   -8.1%    84,508  110,366  -23.4%
  MARGIN %          30.8%    32.3%   -1.5      37.3%    41.2%   -3.9

                 -----------------------------------------------------
                            12                         10
                 -----------------------------------------------------
SHERATON
REVENUE           190,848  203,843   -6.4%   171,720  207,198  -17.1%
EBITDA             48,549   55,854  -13.1%    61,813   84,606  -26.9%
  MARGIN %          25.4%    27.4%    -2.0     36.0%    40.8%    -4.8

                 -----------------------------------------------------
                             9                          3
                 -----------------------------------------------------
WESTIN
REVENUE           183,850  190,129   -3.3%    54,808   60,409   -9.3%
EBITDA             57,820   64,431  -10.3%    22,695   25,760  -11.9%
  MARGIN %          31.4%    33.9%    -2.5     41.4%    42.6%    -1.2

                 -------------------------
                             9
                 --------------------------

LUXURY COLLECTION
REVENUE           166,896  167,046   -0.1%
EBITDA             60,379   61,173   -1.3%
  MARGIN %          36.2%    36.6%    -0.4


                             ASIA PACIFIC
                             ------------
                     2001        2000        Var.

                  -----------------------------------
                               3 Hotels
                  -----------------------------------

OWNED HOTELS
TOTAL REVENUE         42,856      56,577      -24.3%
TOTAL EBITDA          10,512      16,726      -37.2%
  MARGIN %             24.5%       29.6%        -5.1

                  -----------------------------------
                                   3
                  -----------------------------------

SHERATON
REVENUE               42,856      56,577      -24.3%
EBITDA                10,512      16,726      -37.2%
  MARGIN %             24.5%       29.6%        -5.1

    (1) Hotel Results exclude 8 hotels without prior year results and
        10 hotels sold during 2000 and 2001.


               STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                        Debt Portfolio Summary
                        As of December 31, 2001
                        UNAUDITED (in millions)
                                                                Avg
                                                            Maturity
  Debt         Interest      Balance        % of   Interest    (in
                  Terms                Portfolio     Rate      years)
-------------  --------      -------   ---------   -------- ---------
Floating Rate
  Debt:

Five-year term
  loan         LIBOR + 72.5    $ 800         14%     2.60%     1.0
Term loan
  add-on       LIBOR +  125      423          8%     3.12%     1.1
Revolving
  credit
  facility     LIBOR + 72.5      664         12%     2.60%     1.1
                             ------- -----------
                             ------- -----------
Senior credit
  facility                     1,887         34%     2.72%     1.1

Senior secured
  notes
  facility -
  Tranche II
  loans        LIBOR + 275       500          9%     4.62%     1.1

Mortgages and
  other         Various          542         10%     5.08%     2.2

Interest rate
  swaps                         (497)        -9%     3.23%
                             ------- -----------
                             ------- -----------

Total Floating                 2,432         44%     3.53%     1.3
                             ------- -----------
                             ------- -----------

Fixed Rate
  Debt:

Sheraton
  Holding
  public debt                  1,296         23%     7.08%     9.2

Convertible
  debt - Series
  A & B (1)                      507          9%     2.36%     1.9

Mortgages and
  other                          827         15%     7.36%    10.0

Interest rate
  swaps                          497          9%     6.68%
                             ------- -----------
                             ------- -----------

Total Fixed                    3,127         56%     6.32%     8.1
                             ------- -----------
                             ------- -----------

Total Debt                   $ 5,559        100%     5.10%     4.5
                             ======= ===========
                             ======= ===========

                             ------------------------------
                                Maturity
                             ------------------------------
                             ------------------------------
                  (less than) 1 Year                 $ 332
                             2 - 3 Years             2,808
                             4 - 5 Years               548
               (greater than) 5 Years                1,871
                                            ---------------
                                            ---------------
                             Total                 $ 5,559
                                            ===============
                                            ===============
                             ------------------------------
    (1) Maturity date reflects the earlier of the first put date or
        the maturity date of the credit facility which would be used
        to refinance the amount put to the company.



               STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
   Hotels under Renovation and/or without Comparable Results & Other
                            Selected Items
             For the Three Months Ended December 31, 2001

Properties under Significant       Selected Balance Sheet and Cash
  Renovation during the 4th          Flow Items:
  Quarter 2001

Property         Location          Cash and cash equivalents  $   157
--------         --------          Fourth quarter dividend
                                     per share                $  0.20
Quarter to Date                    Capital expenditures       $   160
W Chicago - Lake                   Debt level                 $ 5,559
  Shore          Chicago, IL       Shares Repurchased              -

Other Properties without
  Comparable or Prior Year
  Results

Property         Location

Sheraton Royal
  Denarau Resort Nadi, Fiji
Sheraton Centre
  Toronto Hotel  Toronto, Canada
Hotel Goldener
  Hirsch         Salzburg, Austria
Hotel Bristol    Vienna, Austria
Hotel Imperial   Vienna, Austria
Westin Dublin
  Hotel          Dublin, Ireland
W New York -
  Times Square   New York, NY


               STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
              Summary of Portfolio by Properties & Rooms
                        As of December 31, 2001

                             PROPERTIES

                                Lux.
           Sheraton  Westin    Col./   Four    W      Other     Total
           -------- -------     St.           --     ------    -----
                              Regis  Points
                              -----  ------
Owned,
  leased &
  consol-
  idated
  JVs            67      37      18       7   12         24       165
Unconsol-
  idated
  joint
  ventures       28       9       3       2    -          1        43
           -----------------------------------------------------------
Equity
  interest
  proper-
  ties           95      46      21       9   12         25       208


Managed
  (third-
  party
  owned)        133      39      23      20    4          3       222
Franchised,
  represen-
  ted &
  referral      153      27      13     119    -          1       313
           -----------------------------------------------------------
   Total        381     112      57     148   16         29       743
               ====    ====     ===    ====  ===        ===       ===


                                ROOMS

                               Lux.
           Sheraton  Westin    Col./   Four     W      Other    Total
           --------  ------      St.           --     ------    -----
                              Regis  Points
                              -----  ------
Owned,
  leased &
  consoli-
  dated JVs  26,804  14,100   3,729   1,894   4,390   5,884    56,801
Unconsol-
  idated
  joint
  ventures   11,285   3,763     671     328      -      132    16,179
           -----------------------------------------------------------
Equity in-
  terest
  proper-
  ties       38,089  17,863   4,400   2,222   4,390   6,016    72,980


Managed
  (third-
  party
  owned)     44,589  18,425   5,258   3,734    596      971    73,573
Franchised,
  represen-
  ted & re-
  ferral     45,256   8,677   1,815  21,675      -      491    77,914
           -----------------------------------------------------------
   Total    127,934  44,965  11,473  27,631   4,986   7,478   224,467
           ======== ======= ======= =======   ====== ======   =======


               STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
                     Detail List of Hotels & Rooms
             Owned, Leased, and Consolidated Joint Venture
                        As of December 31, 2001

 Brand        Hotel Name                Location              Rooms
------------- ------------------------  --------------------  -------
Sheraton
 North America
     Sheraton Tucson Hotel & Suites     Tucson, AZ               216
     Sheraton San Diego Hotel & Marina  San Diego, CA          1,045
     Sheraton Universal Hotel           Universal City, CA       436
     Sheraton Denver Tech Center Hotel  Englewood, CO            263
     Sheraton Danbury Hotel             Danbury, CT              242
     Sheraton Stamford Hotel            Stamford, CT             445
     Sheraton Bal Harbour Beach Resort  Bal Harbour, FL          659
     Sheraton Ft. Lauderdale Airport
        Hotel                           Dania, FL                250
     Sheraton Gainesville Hotel         Gainesville, FL          197
     Sheraton Suites Key West           Key West, FL             180
     Sheraton Suites Tampa Airport      Tampa, FL                259
     Sheraton Colony Square             Atlanta, GA              467
     Sheraton Buckhead Hotel Atlanta    Atlanta, GA              369
     Sheraton Chicago Northwest         Arlington
                                          Heights, IL            429
     Sheraton Indianapolis Hotel &
        Suites                          Indianapolis, IN         560
     Sheraton Boston Hotel              Boston, MA             1,215
     Sheraton Hotel Braintree           Braintree, MA            376
     Sheraton Ferncroft Resort          Danvers, MA              367
     Sheraton Framingham Hotel          Framingham, MA           370
     Sheraton Hyannis Resort            Hyannis, MA              224
     Sheraton Inn Lexington             Lexington, MA            119
     Sheraton Colonial Hotel &
        Golf Club                       Lynnfield, MA            280
     Sheraton Needham Hotel             Needham, MA              247
     Sheraton Hotel Newton              Newton, MA               272
     Sheraton College Park Hotel        Beltsville, MD           205
     Sheraton South Portland Hotel      South Portland, ME       219
     Sheraton Chapel Hill Hotel         Chapel Hill, NC          168
     Sheraton Omaha Hotel               Omaha, NE                145
     Sheraton Nashua Hotel              Nashua, NH               336
     Sheraton Edison Hotel Raritan
        Center                          Edison, NJ               274
     Sheraton Hotel Parsippany          Parsippany, NJ           370
     Sheraton New York Hotel & Towers   New York, NY           1,746
     Sheraton Manhattan Hotel           New York, NY             666
     Sheraton Russell Hotel             New York, NY             146
     Sheraton Park Ridge Hotel &
       Conference Center at Valley
       Forge                            King of Prussia, PA      265
     Sheraton Suites Philadelphia
        Airport                         Philadelphia, PA         251
     Sheraton Providence Airport Hotel  Warwick, RI              206
     Sheraton North Charleston Hotel    Charleston, SC           296
     Sheraton Norfolk Waterside Hotel   Norfolk, VA              445
     Sheraton Milwaukee Brookfield
        Hotel                           Brookfield, WI           389
     Sheraton Hamilton Hotel            Hamilton, Canada         299
     Le Centre Sheraton Hotel           Montreal, Canada         825
     Sheraton Gateway Hotel in Toronto
        International Hotel             Toronto, Canada          474
     Sheraton Centre Toronto Hotel      Toronto, Canada        1,377
                                                               -----
 North America                                                18,589
                                                              ------

 International
     Sheraton Buenos Aires Hotel &
        Convention Center               Buenos Aires,
                                            Argentina            739
     Sheraton On The Park               Sydney, Australia        558
     Sheraton Brussels Hotel & Towers   Brussels, Belgium        529
     Sheraton Rio Hotel & Towers        Rio de Janeiro,
                                            Brazil               559
     Sheraton Mofarrej                  Sao Paulo, Brazil        244
     Sheraton Santiago Hotel &
        Convention Center               Santiago, Chile          379
     Park Lane Hotel                    London, England          305
     Sheraton Fiji Resort               Nadi, Fiji               281
     Sheraton Royal Denarau Resort      Nadi, Fiji               267
     Sheraton Paris Airport Hotel
        Charles de Gaulle               Roissy Aerogare,
                                            France               254
     Hotel Villa Cipriani               Asolo, Italy              31
     Cervo Hotel & Conference Center    Costa Smeralda,
                                            Italy                108
     Hotel Diana Majestic               Milan, Italy             107
     Sheraton Roma Hotel &
        Conference Center               Rome, Italy              647
     Hotel Des Bains                    Venice Lido, Italy       191
     Sheraton Cancun Resort & Towers    Cancun, Mexico           471
     Sheraton Maria Isabel Hotel &
        Towers                          Mexico City, Mexico      755
     Sheraton Ambassador Hotel          Monterey, Mexico         239
     Sheraton Skyline Hotel &
        Conference Center               Hayes, Middlesex,
                                            England              351
     Sheraton Lima Hotel & Casino       Lima, Peru               431
     Sheraton Warsaw Hotel & Towers     Warsaw, Poland           350
     Sheraton Lisboa Hotel & Towers     Lisbon, Portugal         375
     Hotel Santa Maria de El Paular     Rascafria, Spain          44
                                                                  --
 International                                                 8,215
                                                               -----
 Sheraton Worldwide                                           26,804
                                                              ------

Westin
 North America
     Westin South Coast Plaza           Costa Mesa, CA           390
     Westin Hotel Long Beach            Long Beach, CA           460
     Westin Los Angeles Airport         Los Angeles, CA          740
     Westin Mission Hills Resort        Rancho Mirage, CA        512
     Westin Horton Plaza San Diego      San Diego, CA            450
     Westin San Francisco Airport       San Francisco, CA        393
     Westin Tabor Center                Denver, CO               430
     Westin Stamford Hotel              Stamford, CT             462
     Westin Grand, D.C.                 Washington, DC           263
     Westin Fairfax Washington, DC      Washington, DC           206
     Westin Fort Lauderdale             Fort Lauderdale, FL      293
     Westin Atlanta North at Perimeter  Atlanta, GA              369
     Westin Peachtree Plaza             Atlanta, GA            1,068
     Westin Maui                        Lahaina, HI              758
     Westin Indianapolis                Indianapolis, IN         573
     Westin Waltham Boston              Waltham, MA              346
     Westin Southfield - Detroit        Southfield, MI           384
     Westin Cincinnati                  Cincinnati, OH           450
     Westin Philadelphia                Philadelphia, PA         290
     Westin Galleria Houston            Houston, TX              487
     Westin Oaks                        Houston, TX              406
     Westin Seattle                     Seattle, WA              891
     Westin Resort                      St. John, US Virgin
                                            Islands              282
                                                                 ---
 North America                                                10,903
                                                              ------

 International
     Hotel Bristol                      Vienna, Austria          140
     Westin Dublin Hotel                Dublin, Ireland          163
     Westin Excelsior Florence          Florence, Italy          168
     Westin Palace Milan                Milan, Italy             244
     Westin Excelsior Rome              Rome, Italy              316
     Westin Europa & Regina             Venice, Italy            185
     Westin Excelsior Venice Lido       Venice Lido, Italy       196
     Westin Regina Resort - Los Cabos   Cabo San Lucas,
                                            Mexico               243
     Westin Regina Resort - Cancun      Cancun, Mexico           293
     Westin Regina Resort - Puerto
        Vallarta                        Puerta Vallarta,
                                            Mexico               280
     Turnberry Hotel and Golf Resort, A
        Westin Hotel                    Ayreshire, Scotland      221
     Westin Palace Madrid               Madrid, Spain            465
     Hotel Maria Cristina, A Westin
        Hotel                           San Sebastian, Spain     136
     Hotel Alfonso XIII, A Westin Hotel Seville, Spain           147
                                                                 ---
 International                                                 3,197
                                                               -----
 Westin Worldwide                                             14,100
                                                              ------

Luxury Collection/St. Regis
 North America
     The Phoenician                     Scottsdale, AZ           654
     St. Regis Aspen                    Aspen, CO                257
     St. Regis Washington, DC           Washington, DC           193
     St. Regis New York                 New York, NY             315
     St. Regis Houston                  Houston, TX              232
                                                                 ---
 North America                                                 1,651
                                                               -----

 International
     Park Tower                         Buenos Aires,
                                            Argentina            181
     Hotel Goldener Hirsch              Salzburg, Austria         69
     Hotel Imperial                     Vienna, Austria          138
     San Cristobal Tower                Santiago, Chile          139
     Hotel Cala di Volpe               Costa Smeralda, Italy     123
     Hotel Pitrizza                    Costa Smeralda, Italy      52
     Hotel Romazzino                   Costa Smeralda, Italy      94
     Grand Hotel                        Florence, Italy          107
     Hotel Principe di Savoia           Milan, Italy             404
     St. Regis Grand Rome               Rome, Italy              161
     Hotel Danieli                      Venice, Italy            233
     Hotel Gritti Palace                Venice, Italy             91
     Hotel Mencey                       Santa Cruz De
                                            Tenerife, Spain
                                            Canary Islands       286
                                                                 ---
 International                                                 2,078
                                                               -----
 Luxury Collection/St. Regis Worldwide                         3,729
                                                               -----

W
 North America
     W Los Angeles Westwood             Los Angeles, CA          258
     W San Francisco                    San Francisco, CA        423
     W Atlanta                          Atlanta, GA              274
     W Chicago - Lake Shore             Chicago, IL              556
     W Chicago - City Center            Chicago, IL              390
     W New Orleans - French Quarter     New Orleans, LA           98
     W New Orleans                      New Orleans, LA          423
     W New York - The Tuscany           New York, NY             122
     W New York - The Court             New York, NY             198
     W New York                         New York, NY             713
     W New York - Times Square          New York, NY             509
     W Seattle                          Seattle, WA              426
                                                                 ---
 W Worldwide                                                   4,390
                                                               -----

Four Points
 North America
     Four Points by Sheraton Tucson
        University Plaza                Tucson, AZ               150
     Four Points by Sheraton Rancho
        Bernardo                        Rancho Bernardo, CA      209
     Four Points by Sheraton Denver
        Cherry Creek                    Denver, CO               320
     Four Points by Sheraton
        Minneapolis                     Minneapolis, MN          253
     Four Points by Sheraton Portland
        Downtown                        Portland, OR             140
     Four Points by Sheraton
        Philadelphia Airport            Philadelphia, PA         177
                                                                 ---
 North America                                                 1,249
                                                               -----

 International
     Four Points Sydney Hotel           Sydney, Australia        645
                                                                 ---
 International                                                   645
                                                                 ---
 Four Points Worldwide                                         1,894
                                                               -----

Other
 North America
     Clarion Hotel                      Millbrae, CA             440
     San Diego Marriott Suites          San Diego, CA            264
     Sonoma County Hilton               Santa Rosa, CA           246
     Capitol Hill Suites                Washington, DC           152
     Deerfield Beach Hilton             Deerfield Beach, FL      221
     Atlanta - Lenox Inn                Atlanta, GA              175
     Tremont Hotel                      Chicago, IL              130
     Raphael                            Chicago, IL              172
     Boston Park Plaza Hotel            Boston, MA               950
     BWI Airport Marriott               Baltimore, MD            310
     Novi Hilton                        Novi, MI                 239
     Doubletree Hotel Minneapolis
        Airport at the Mall             Bloomington, MN          321
     Wayfarer Inn                       Bedford, NH              194
     Marriott Forrestal Village Hotel   Princeton, NJ            294
     Days Inn City Center               Portland, OR             173
     Clarion Hotel Allentown            Allentown, PA            224
     Caesars Cove Haven                 Lakeville, PA            282
     Caesars Pocono Palace              Marshalls Creek, PA      189
     Caesars Paradise Stream            Mount Pocono, PA         164
     Caesars Brookdale                  Scotrun, PA              119
     Courtyard by Marriott Crystal
        City                            Arlington, VA            272
     Residence Inn by Marriott Tyson's
        Corner                          Vienna, VA                96
     Days Inn Town Center               Seattle, WA               91
     Sixth Avenue Inn                   Seattle, WA              166
                                                                 ---
 Other Worldwide                                               5,884
                                                               -----

Total Company Worldwide                                       56,801
                                                              ======


--------------------------------------------------------------------------------

Contact: 
     Starwood Hotels & Resorts Worldwide, Inc., White Plains
     Dan Gibson
     (914) 640-8175