Starwood to Sell $500 Million of Hotel Assets

Press Release: Starwood Hotels & Resorts Worldwide, Inc.

September 17, 1999
WHITE PLAINS, NY -- Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) has announced that, consistent with its plan to selectively dispose of non-strategic assets, it has identified a number of hotel properties with an estimated gross sales price of approximately $500 million as potential sale candidates between now and the second quarter of 2000.

Proceeds from the sales of these properties are expected to be used primarily to repurchase stock under Starwood's existing share repurchase program. As previously announced, Starwood's board has approved the repurchase from time to time of up to $1.1 billion of its stock, of which about $800 million has been repurchased to date.

``We are continuing to evaluate our worldwide portfolio with a focus toward improving our stock performance for our shareholders,'' said Barry S. Sternlicht, chairman and chief executive officer of Starwood. ``Capital expenditures, as well as all owned real estate are being evaluated to maximize returns on our invested capital. We are very focused on selling non-strategic assets around the world in a tax efficient manner. Our goal is to retain the management contracts where possible. We are currently in discussions to sell several assets with an aggregate value of approximately $200 million,'' Mr. Sternlicht concluded.

The company declined to identify the properties that may be sold at this time.

Starwood, through its subsidiaries, owns, manages and franchises hotels under its St. Regis/Luxury Collection, Westin, Sheraton, Four Points and W brands. Starwood is one of the leading hotel and leisure companies in the world with more than 700 hotels in 76 countries and 130,000 employees at its owned and managed properties.

This release contains certain statements that may be deemed ``forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are no guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated at the time the forward-looking statements are made, including, without limitation, risks and uncertainties associated with the following: the continued ability of Starwood Hotels and Resorts (the ''Trust``) to qualify for taxation as a REIT; Starwood's integration of the assets and operations of ITT and Westin; completion, terms and timing of future acquisitions and dispositions, including the pending sale of gaming operations and the pending acquisition of Vistana, Inc.; the availability of capital for acquisitions and for renovations; execution of hotel and casino renovation and expansion programs; the ability to maintain existing management, franchise or representation agreements and to obtain new agreements on favorable terms; competition within the lodging industry and the gaming industry, the cyclicality of the real estate business, the hotel business and the gaming business; foreign exchange fluctuations; general real estate and national and international economic conditions; political, financial and economic conditions and uncertainties in countries in which Starwood owns property or operates; the ability of Starwood, owners of properties it manages or franchises and others with which it does business to address the Year 2000 issue, and the costs associated therewith; the adoption by several European countries of the euro as their national currency; and the other risks and uncertainties set forth in the annual, quarterly and current reports and proxy statements of the Trust and Starwood. Starwood undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.)

SOURCE: Starwood Hotels & Resorts Worldwide, Inc.