Company Press Release
May 23, 2000
ENGLEWOOD, CO -- HomeSpace(tm) Inc. and Starwood Hotels & Resorts Worldwide Inc. are teaming up to provide
members of the Starwood Preferred Guest hotel loyalty program with an unprecedented program to earn Starpoints
when completing their real estate, mortgage and moving services with HomeSpace.
Under the new marketing agreement, Starwood Preferred Guest members will earn Starpoints for buying, selling, financing
and using long-distance moving services provided through the HomeSpace program. The program offers the richest
real estate-related frequent traveler rewards in the industry today, according to both companies.
HomeSpace offers cash savings or premiums on real estate transactions, a national network of full-service real
estate agents, low mortgage rates, deeply discounted interstate moving services, and personalized customer service
from trained consumer advocates.
Starwood Preferred Guest members in the U.S. will be eligible to earn tens of thousands of Starpoints for participating
in the HomeSpace program. This is the most significant earning program ever offered to Starwood Preferred Guest
members and marks the first time Starwood is partnering with a real estate services provider.
``Our market research proved that consumers in the real estate and mortgage markets are enthusiastic about the
idea of earning free vacations for their home-related transactions. So working with Starwood, we designed the best
program in the industry, by far, to provide travel rewards for home-related transactions,'' said Henry DeNero,
Chairman and Chief Executive Officer of HomeSpace. ``This affinity program with Starwood is another example of
how we're adding extraordinary value to the home-ownership process.''
``Starwood's new partnership with HomeSpace delivers a special value to Starwood Preferred Guest members by providing
the opportunity to earn thousands of Starpoints for one of life's most important transactions; the purchase of
a home,'' remarked Hoyt Harper, Senior Vice President of Business Development and Marketing Programs for Starwood.
``Starwood continues to seek partners like HomeSpace who provide meaningful value to our hotel guests.''
Members can redeem Startpoints for domestic and international stays at more than 700 luxury hotels and resorts
in over 80 countries around the world.
Starwood Preferred Guest won the 1999 Hotel Program of the Year Freddie Award, one of the most prestigious honors
in the travel industry. It has also received Freddie Awards for Best Customer Service, Best Web Site, Best Elite-Level
Program and Best Award Redemption. The Freddie Awards are the frequent traveler industry's equivalent to the Oscars,
and are managed by InsideFlyer magazine. Frequent travelers around the world rank the best frequent traveler rewards
programs.
Starwood Preferred Guest, deemed unique in the industry for its policy of no blackout dates and no capacity controls,
enables members to redeem stays when they want and where they want, a feature not offered by competitors. Starwood
Hotels and Resorts Worldwide Inc. unites some of the world's most celebrated hotel brands, including Westin Hotels
and Resorts, Sheraton Hotels and Resorts, Four Points Hotels®, St. Regis®, The Luxury Collection® and
W Hotels®.
Points for Real Estate, Mortgage and Moving
For using HomeSpace services, Preferred Guest members will earn: 2,500 points per $10,000 in home value for home
sales and/or purchases; 1,000 points for each $10,000 in loan value on mortgages for home purchases or refinancing;
and 5,000 Starpoints for interstate moving services provided by HomeSpace through its moving partner, MoveSource.
In addition, members will earn a special introductory bonus of 20,000 Starpoints for registering in the program
by July 31, 2000 and closing a mortgage transaction before Dec. 31, 2000. Members will be able to access services
via a new co-branded Web site at http://homespace.com/preferredguest, or by calling toll-free, 888/526-7172.
The Starpoints being offered through this program can quickly translate into great vacations. For example, a person
selling a $250,000 house, buying a $250,000 house and financing the new home, and using the moving services can
earn 150,000 Starpoints. These points equal enough for more than a month's stay at certain Starwood hotels or over
185,000 frequent flyer miles or other high-value rewards.
``The rewards we're offering Starwood Preferred Guests for real estate transactions are the richest in industry,''
said DeNero. ``In addition, guests will benefit from access to HomeSpace's national network of full-service real
estate brokers and agents for their home purchase and sale transactions, our already low rates on mortgages, and
from our unique consumer advocacy approach.''
About Starwood Hotels & Resorts Worldwide Inc.
Starwood Hotels & Resorts Worldwide Inc., through its St. Regis, Luxury Collection, Westin, Sheraton, Four
Points and W brands, is one of the leading hotel and leisure companies in the world with more than 700 hotels in
80 countries and 120,000 employees at its owned and managed properties.
About HomeSpace
HomeSpace (http://www.homespace.com) serves as the consumer's advocate for the residential experience, providing
a full range of real estate, mortgage and homeowner services, all accessible through the Internet, or a toll-free
call to 877/466-0544.
Under the advocacy concept, the company provides value-pricing, superior hands-on service, information to educate
the consumer, and intervention, where necessary, to ensure that its service partners perform to HomeSpace's rigorous
customer service standards.
Established in 1996, HomeSpace became the exclusive provider of real estate and mortgage services to Costco Wholesale
in 1997. Since then, HomeSpace has made its unique savings and consumer support programs available to all consumers.
To date, it has closed more than 2,800 real estate transactions, representing approximately $600 million of residential
property and it has completed close to 6,000 mortgage transactions, totaling over $1 billion.
The HomeSpace national real estate network has contractual relationships with the leading real estate brokers in
over 350 major cities in all 50 states. This network includes brokers from the industry's leading franchises, such
as Coldwell Banker, Century 21, Prudential, RE/MAX, Realty Executives, Better Homes and Gardens, and ERA, as well
as many large independent brokers.
HomeSpace gives consumers cash savings or other premiums on their real estate transactions for using brokers that
are part of its national Realtor® network. It also helps manage the consumer's real estate transaction and
provides contractual protections to consumers that are typically not available through a direct relationship with
a real estate professional.
HomeSpace offers competitively-priced home loans from more than 60 national and regional lenders, including such
leading financial institutions as Bank of America, Chase Manhattan, Ohio Savings Bank, and Interfirst (a division
of ABN AMRO).
Major investors in HomeSpace include: Global Retail Partners (until recently part of Donaldson, Lufkin & Jenrette);
Oak Investment Partners; Moore Capital Management; Pequot Capital Management; and Robert Zangrillo, former chairman,
CEO and co-founder of Interworld. Other investors are Bluewater Capital; T. Rowe Price; and Weiss, Peck & Greer.
Realtor® is a registered trademark of the National Association of Realtors.
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Contact:
John Mallen Communications
Esther Rudis, 626/229-2800
or
Sandy Frinton, 914/331-1200