Monumental Groundbreaking Held Yesterday in San Francisco for the St. Regis Museum Tower Project

Hotel, Residential Units and Cultural Center Will Open in 2003

Press Release
March 21, 2001
WHITE PLAINS, NY -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced yesterday its partnership with Carpenter & Company, Inc. of Cambridge, MA to build The St. Regis Museum Tower.

The 40-story complex is being constructed on land purchased from the San Francisco Redevelopment Agency and is being built in close cooperation with the agency and the City of San Francisco.

The project is scheduled to open in 2003, and in addition to a luxury hotel, will include private residences, an African American Cultural Center and four levels of underground valet parking. The Williams Building, a key historical building located at the corner of Third and Mission, is being rehabilitated and incorporated in the design. Starwood expects that sales of the private residences will significantly reduce the cost basis of the hotel.

San Francisco Mayor Willie L. Brown, Jr. joined Starwood Chairman and CEO Barry Sternlicht; Carpenter & Company, Inc. President and CEO Richard Friedman; and F. E. Jordan Associates, Inc. President Frederick Jordan, all wearing St. Regis hard hats with gold plated shovels in hand, to dig a ceremonial first trench at this morning's groundbreaking ceremony. Local civic and business leaders were also on hand to witness the event.

``By bringing St. Regis to San Francisco, we are continuing to establish St. Regis as one of the premier luxury hotels in the world. In addition, we will make a meaningful contribution to the city's cultural community and diversity with the opening of the city's first major African American Cultural Center,'' said Barry Sternlicht, Starwood Chairman and CEO.

This important development represents the last significant project of the Yerba Buena Redevelopment Plan, and will be located in the South of Market (SOMA) district of San Francisco, the city's fastest growing area. Located immediately adjacent to the world-renowned San Francisco Museum of Modern Art and across the street from the Yerba Buena Gardens, the project will also provide easy access to the Center for the Arts Theater, the Moscone Center, the Sony Metreon and San Francisco's shopping and Financial Districts.

The first 20 floors of the 40-story tower will include 269 guest rooms, all with panoramic views of the Yerba Buena Gardens, the Financial District and San Francisco Bay. The hotel will offer professionally trained and accredited concierge and butler services, a signature restaurant, state-of-the-art spa, a casual cafe, two lounges and 12,760 square feet of meeting space, including a 5,000 square foot ballroom.

Floors 22-40 will feature approximately 100 one- to four- bedroom residential condominiums and penthouses ranging in size from 1,400 to 5,600 square feet. All residents will also be able to take advantage of the total amenities offered at the hotel. With the demand for housing in San Francisco's city center on the rise, expectations are that the SOMA area, and particularly Yerba Buena Gardens, will become one of the city's most desirable residential areas, especially following the completion of other nearby luxury developments.

When completed, the African American Cultural Center will become part of the Mission Street ``cultural'' corridor which will include the Yerba Buena Center for the Arts, The Mexican Museum, The Jewish Museum and the California Historical Society. The African American Cultural Center is positioned to be a significant part of the community, and is also designed to become a must see attraction in San Francisco.

With the announcement of The St. Regis Museum Tower, there are now eleven St. Regis hotels. The legendary flagship in New York City is consistently ranked as one of the world's finest, and there also are St. Regis hotels in Los Angeles, Aspen, Beijing, Houston, Rome and Washington, D.C. The St. Regis Monarch Beach Resort in Dana Point, California is scheduled to open in September 2001, The St. Regis Shanghai is scheduled for completion in July 2001 and The St. Regis Hotel and Residences in Ft. Lauderdale will open in 2002. Each is unique to its surroundings, and each offers guests a high level of customized service.

The lead design architect for The St. Regis Museum Tower project is Skidmore, Owings & Merrill of San Francisco and the general contractor for the project is Webcor Builders of San Mateo, CA.

Carpenter & Company, Inc. of Cambridge, MA is a nationally recognized development firm with substantial hotel and condominium experience including the Charles Square complex in Cambridge and the Hilton Boston Logan hotel. Carpenter is also Starwood's partner in the development of the 1,200 room Headquarters Hotel at the Massachusetts Convention Center development in Boston.

Starwood is one of the leading hotel and leisure companies in the world with more than 725 properties in 80 countries and 120,000 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, W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For reservations or more information, please visit www.starwood.com.

Members of the press: Please contact Starwood's new toll-free media hotline at (866) 4-STAR-PR (866-478-2777) for photography or additional information

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Contact: 

     Starwood Hotels & Resorts, White Plains
     Katie Meyer, Vice President Public Relations
     914/640-8247
     katie.meyer@starwoodhotels.com
        or
     Dan Klores Communications, New York
     Ruth Sarfaty or Diana Kashan
     212/981-5104/5161
     ruth_sarfaty@dkcnews.com or diana_kashan@dkcnews.com