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Exhibit 99.1


CONTACT:		Jason Koval (914) 640-4429

FOR IMMEDIATE RELEASE
February 1, 2007

STARWOOD REPORTS STRONG FOURTH QUARTER AND FULL YEAR 2006 RESULTS

Company Signs Record 156 New Hotel Contracts in 2006 As Starwood Brands
Achieve #1 Position in Upper-Upscale and Luxury Development

WHITE PLAINS, NY, February 1, 2007 — Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported strong fourth quarter 2006 financial results, driven by double-digit worldwide REVPAR increases and higher operating margins.

Fourth Quarter 2006 Highlights

	§		Excluding special items, EPS from continuing operations was $0.92 compared to $0.71 for the fourth quarter of 2005. Including special items, EPS from continuing operations was $0.94 compared to $0.70 in the fourth quarter of 2005.

	§		Worldwide System-wide REVPAR for Same-Store Hotels increased 11.4% compared to the fourth quarter of 2005. System-wide REVPAR for Same-Store Hotels in North America increased 9.1% compared to the fourth quarter of 2005.

	§		Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 11.7% compared to the fourth quarter of 2005. REVPAR for Starwood branded Same-Store Owned Hotels in North America increased 8.6% compared to the fourth quarter of 2005.

	§		Margins at Starwood branded Same-Store Owned Hotels Worldwide and in North America improved 280 and 153 basis points, respectively, as compared to the fourth quarter of 2005.

	§		Management and franchise revenues increased 54.8% over 2005, including revenues from the Le Méridien hotels and the hotels sold to Host.

	§		The Company signed 61 hotel management and franchise contracts in the quarter (representing approximately 12,500 rooms). For the full year, the Company signed 156 hotel management and franchise contracts (representing approximately 36,700 rooms).

	§		Excluding residential sales, contract sales at vacation ownership properties increased 15.0% over 2005. Reported revenues from vacation ownership and residential sales increased $130 million when compared to 2005. Strong increases

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			in revenues from vacation ownership sales were partially offset by a decline in residential sales.

	§		Excluding special items, income from continuing operations was $199 million compared to $162 million in the same period of 2005. Net income, including special items, was $203 million compared to $159 million in the fourth quarter of 2005.

	§		Total Company Adjusted EBITDA was $383 million when compared to $391 million in 2005. The year over year reduction is due to the sale of 50 hotels since the beginning of the fourth quarter of 2005 and stock based compensation expense, offset in part by increases in management and franchise revenues.

	§		During the fourth quarter, the Company repurchased approximately 0.6 million shares at a cost of $34.2 million. For the full year, the Company repurchased 21.7 million shares at a cost of $1.263 billion.

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the fourth quarter of 2006 of $0.94 compared to $0.70 in the fourth quarter of 2005. Excluding special items, EPS from continuing operations was $0.92 for the fourth quarter of 2006 compared to $0.71 in the fourth quarter of 2005. Excluding special items, the effective income tax rate in the fourth quarter of 2006 was 21.4% including a $19 million benefit resulting from the recognition of certain tax credits related to 2005.

Income from continuing operations was $203 million in the fourth quarter of 2006 compared to $159 million in 2005. Excluding special items, which net to a $4 million benefit in 2006, income from continuing operations was $199 million for the fourth quarter of 2006 compared to $162 million in 2005.

Net income was $203 million and EPS was $0.93 in the fourth quarter of 2006 compared to net income of $159 million and EPS of $0.70 in the fourth quarter of 2005.

Steven J. Heyer, CEO, said, “I am extremely proud of what Starwood accomplished this year and am even more excited about our positioning for 2007. With our fee business now the largest contributor to our bottom line, our broad global presence, our industry-leading pipeline, and our significant brand initiatives throughout 2006, we are transforming from a cyclical real estate business into a leading global lifestyle brand company. We emerged from 2006 with the right asset mix, a clear strategy, focus, process and discipline. By any measure, it is clear our new model has been paying off. Today, Starwood is a higher-growth, more capital-efficient, cash-rich and less-cyclical business.”

Heyer continued: “Fourth quarter results were impressive, beating our guidance. While North America branded REVPAR at Same-Store Owned Hotels increased at the high end of our guidance, up 8.6%, Worldwide REVPAR jumped 11.7%. Importantly, this REVPAR growth had great flow-through at these hotels, driving North American and Worldwide margin increases of over 150 basis points and 280 basis points, respectively. Worldwide System-wide REVPAR increased 11.4% and managed and franchised revenues increased 54.8% in the quarter.

Our pipeline’s upward trajectory is a testament to the strength of our branding initiatives, our development focus, and our emphasis on building relationships with the best development partners in the world. We signed 156 new long-term hotel contracts this year, the most in our history, and according to December 2006 Smith Travel data, our brands

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emerged as #1 overall in the upper-upscale and luxury development market, with 38% of the hotels and rooms in the pipeline today. This represents strong growth on an absolute basis, and significant market share gains. We have a leading position in the upper-upscale and luxury segments, and our global development group and brand teams are working to extend this lead.

Revenues at our timeshare division grew 13% year over year, and we expect our St Regis, Westin and Sheraton brands to continue driving strong growth in this under-penetrated business. Contract sales were up 15% in the quarter due to the combination of higher pricing and additional units sold.

We fully expect 2007 to be another great year for our company and we remain focused on our strategic initiatives — service excellence, brand development, pipeline development, vacation ownership growth, real estate development and repositionings. We believe that these initiatives will allow us to outperform the competition and continue to create value for our shareholders.”

Operating Results

Fourth Quarter Ended December 31, 2006

Management and Franchise Revenues

Worldwide System-wide (owned, managed and franchised) REVPAR for Same-Store Hotels increased 11.4% compared to the fourth quarter of 2005 including 24.8% in Africa & the Middle East, 17.0% in Europe, 12.5% in Latin America, 11.2% in Asia Pacific and 9.1% in North America. The 9.1% increase in System-wide REVPAR for Same-Store Hotels in North America by brand was: St. Regis/Luxury Collection 15.7%, W Hotels 13.5%, Westin 9.8% and Sheraton 7.7%.

Management fees, franchise fees and other income were $209 million, up $57 million, or 37.5%, from the fourth quarter of 2005. Management fees grew 57.4% to $107 million and franchise fees grew 34.8% to $31 million. The increases are related to the addition of new hotels (including Le Méridien hotels and the hotels sold to third parties, including Host Hotels & Resorts, Inc. (“Host”)), and growth in REVPAR of existing hotels under management, offset in part by fees associated with hotels that left the system.

The hotels sold to Host contributed $28 million, and the Le Méridien hotels added $16 million, respectively, of management and franchise revenues during the fourth quarter of 2006. The Le Méridien hotels contributed $5 million in the same quarter of 2005 as the Company acquired that business at the end of November of 2005. Excluding the hotels sold to Host, and fees from Le Méridien, management and franchise revenues increased 18.2% in the fourth quarter of 2006 when compared to 2005. Worldwide Le Méridien hotels that were in operation during both periods had REVPAR growth of 21.8% in the fourth quarter of 2006 when compared to 2005 with ADR increasing 16.8% and occupancy increasing 290 basis points.

During the fourth quarter of 2006, the Company signed 61 hotel management and franchise contracts (representing approximately 12,500 rooms: 15 Sheraton, 15 aloft, 11 Four Points by Sheraton, 9 Westin, 3 W Hotels, 2 Le Méridien, 2 Luxury Collection, 2 St. Regis, and 2 Element). Of the hotels signed in the quarter, 46 were new builds and 15

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were conversions from other brands. For the full year, the Company signed 156 hotel management and franchise contracts (representing approximately 36,700 rooms). The Company now has roughly 400 hotels in the active pipeline and almost 100,000 rooms at December 31, 2006, driven by strong interest in all Starwood brands. Approximately half of the pipeline is in international locations.

During the fourth quarter of 2006, 18 new hotels and resorts (representing approximately 4,400 rooms) entered the system, including The Westin Chicago North Shore (Wheeling, Illinois, 411 rooms), The U.S. Grant (San Diego, California, 270 rooms) and The Westin St. Maarten, Dawn Beach Resort & Spa (St. Maarten, Netherland Antilles, 416 rooms). Eight properties (representing approximately 1,700 rooms) were removed from the system during the quarter. The Company expects to open more than 80 hotels (representing approximately 20,000 rooms) in 2007 and is targeting signing approximately 200 hotel management and franchise contracts in 2007.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 11.7%. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 8.6%. REVPAR growth was particularly strong at the Company’s owned hotels in Chicago, New York, Phoenix, and San Diego. Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 12.5% excluding the impact of foreign exchange, and as reported, in US dollars, branded Same-Store Owned Hotel REVPAR increased 17.5%.

Revenues at Starwood branded Same-Store Owned Hotels in North America increased 8.3% while costs and expenses increased 6.1% when compared to 2005. Margins at these hotels increased 153 basis points.

Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 10.6% while costs and expenses increased 6.5% when compared to 2005. Margins at these hotels increased 280 basis points.

Reported revenues at owned, leased and consolidated joint venture hotels were $602 million when compared to $894 million in 2005. Reported revenues and operating income were impacted by the sale of 50 hotels since the beginning of the fourth quarter of 2005. These hotels had $2 million of revenues and $1 million of expenses (before depreciation) in 2006 as compared to $358 million of revenues and $254 million of expenses (before depreciation) in the same quarter of 2005.

Vacation Ownership

While contract sales of vacation ownership intervals were up 15.0%, total vacation ownership reported revenues increased 108.1% to $310 million when compared to 2005 due primarily to the timing of the recognition of deferred revenues under percentage of completion accounting for pre-sales at projects under construction. The average price per vacation ownership unit sold increased 11.2% to approximately $27,000, and the number of contracts signed increased 3.5% when compared to 2005.

During the fourth quarter of 2006, the Company was actively selling vacation ownership interests at 15 resorts. Starwood Vacation Ownership is also in the predevelopment phase

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of several other new vacation ownership resorts in California, Colorado, Hawaii, Mexico and Aruba.

During the fourth quarter of 2006, the Company sold approximately $133 million of vacation ownership notes receivable and recognized gains of $17 million as compared to gains of $25 million in the same period of 2005.

Residential

During the fourth quarter of 2006, the Company recognized residential revenues of approximately $12 million primarily from sales at the St. Regis in New York. To date, the Company has recognized approximately $40.7 million in revenues from the sale of condominiums at the St. Regis in New York. In the fourth quarter of 2005, the Company recognized residential revenues of $43.0 million primarily associated with sales at the St. Regis Museum Tower in San Francisco which sold out in the first half of 2006.

Selling, General, Administrative and Other

Selling, general, administrative and other expenses increased 33.3% to $128 million compared to the fourth quarter of 2005. Approximately one-third of the increase is due to the impact of stock-based compensation, including stock option expense. The remaining increase includes investments in our global development capability, and costs associated with the launch of the Company’s new brands, aloft and Element, as well as the addition of the Le Méridien business.

Asset Sales

During the fourth quarter of 2006, the Company sold two wholly-owned hotels for cash proceeds of approximately $29 million. Additionally, the Company received proceeds of approximately $20 million from the sales of two unconsolidated joint ventures in the fourth quarter of 2006.

Capital

Gross capital spending during the quarter included approximately $55 million in renovations of hotel assets including construction capital at the Sheraton Centre Toronto Hotel, the Westin Cancun Resort & Spa, and the Westin Maui Resort. Investment spending on gross vacation ownership interest (“VOI”) inventory was $107 million, which was offset by cost of sales of $74 million associated with VOI sales during the quarter. The inventory spend included VOI construction at the Westin Ka’anapali Ocean Resort Villas North in Maui, the Westin Princeville Resort in Kauai, the Westin Kierland Resort in Arizona, Sheraton’s Vistana Villages in Orlando, and the Westin Lagunamar Resort in Cancun.

Share Repurchase

During the fourth quarter of 2006, the Company repurchased approximately 0.6 million shares at a total cost of approximately $34.2 million. Since January 1, 2006, the Company has returned more than $4.3 billion to shareholders, including $2.8 billion in connection with the sale of 33 hotels to Host, approximately $1.263 billion for the repurchase of approximately 21.7 million shares of its stock and $276 million in dividends. At December 31, 2006, approximately $380 million remained available under the Company’s share

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repurchase authorization. Starwood had approximately 214 million shares outstanding (including partnership units) at December 31, 2006.

Dividend

The Company’s former REIT subsidiary paid dividends of $0.21 per share for each of the first and second quarters of 2006. The remaining 2006 dividend of $0.42 per share was declared by the Board of Directors in December 2006 and paid by the Company on January 19, 2007.

Balance Sheet

At December 31, 2006, the Company had total debt of $2.632 billion and cash and cash equivalents (including $336 million of restricted cash) of $519 million, or net debt of $2.113 billion, compared to net debt of $2.437 billion at the end of the third quarter of 2006.

At December 31, 2006, debt was approximately 67% fixed rate and 33% floating rate and its weighted average maturity was 4.4 years with a weighted average interest rate of 6.97%. The Company had cash (including total restricted cash) and availability under domestic and international revolving credit facilities of approximately $1.867 billion.

Results for the Twelve Months Ended December 31, 2006

EPS from continuing operations increased to $5.01 compared to $1.88 in 2005. Excluding special items, EPS from continuing operations was $2.73 compared to $2.34 in 2005. Excluding special items, income from continuing operations was $607 million compared to $526 million in 2005. Net income was $1.043 billion and EPS was $4.69 compared to $422 million and $1.88, respectively, in 2005. Total Company Adjusted EBITDA, which was significantly impacted by the sale of 56 hotels since the beginning of 2005, was $1.309 billion compared to $1.417 billion in 2005.

Outlook

The Company’s 2007 Guidance assumes the following changes since we last provided guidance:

	§		The sale of two unconsolidated joint ventures in the fourth quarter of 2006

	•		The expected sale of 14 owned hotels and 8 hotels in unconsolidated joint ventures in 2007 with anticipated gross proceeds of $475 million to $500 million. Most sales are expected to be completed in the first half of 2007.

For the Full year 2007:

Adjusted EBITDA is expected to be approximately $1.365 billion prior to anticipated asset sales. Adjusting for the asset sales mentioned above, 2007 Adjusted EBITDA is expected to be approximately $1.335 billion, assuming:

REVPAR growth at Company operated (Owned and Managed) hotels worldwide of 8% to 10%

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	§		REVPAR growth at Same-Store Owned Hotels in North America of 7% to 9%

	§		North America Same-Store Owned Hotel EBITDA growth of 12% to 14% with margin improvement of 100 to 150 basis points at these hotels

	§		Growth from management and franchise revenues of approximately 17% to 19% including revenues earned from the hotels sold to Host, and 13% to 15% excluding the hotels sold to Host

	§		An increase in operating income from our vacation ownership and residential business of $45 to $55 million (including gains on sale of vacation ownership notes receivable)

	§		Income from continuing operations, before special items, is expected to be approximately $543 million reflecting an effective tax rate of approximately 33%.

	§		EPS before special items is expected to be approximately $2.50

	§		Full year capital expenditures (excluding timeshare inventory) would be approximately $650 million, including $300 million for maintenance, renovation and technology and $350 million for other growth initiatives, including the Bal Harbour project. Additionally, net capital expenditures for timeshare inventory would be approximately $150 million.

	§		Full year depreciation and amortization expense would be approximately $340 million

	§		Full year cash interest expense would be approximately $184 million and cash taxes of approximately $240 million.

Reconciliation to reflect the sale of assets completed in Q4 2006 and assets expected to be sold in 2007

(in millions)


2007 Adjusted EBITDA Guidance	$	1,365

Adjustments to estimate the sale of 14 owned hotels sold in Q4 2006 or expected to be sold in 2007

Less: Revenues from hotels sold in Q4 2006 or expected to be sold in 2007		(94	)

Add: Expenses from hotels sold in Q4 2006 or expected to be sold in 2007		73

Add: Expected fees from hotels sold or expected to be sold encumbered by management or franchise contracts		2

Adjustments to estimate the sale of 10 JV assets sold in Q4 2006 or expected to be sold in 2007

Less: Earnings from unconsolidated JV hotels sold or expected to be sold		(11	)


2007 Adjusted EBITDA Guidance to reflect asset sales	$	1,335

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For the three months ended March 31, 2007:

Adjusted EBITDA is expected to be $255 million assuming:

	§		REVPAR growth at Company operated (Owned and Managed) hotels worldwide of 8% to 10%

	§		REVPAR growth at Same-Store Owned Hotels in North America of 8% to 10%

	§		North America Same-Store Owned Hotel EBITDA growth of 13% to 15% with margin improvement of 100 to 150 basis points at these hotels

	§		Growth from management and franchise revenues of approximately 35% to 40% including revenues earned from the hotels sold to Host, and 13% to 15% excluding the hotels sold to Host

	§		An increase in operating income from our vacation ownership and residential business of $15 to $20 million

	§		Income from continuing operations, before special items, is expected to be approximately $83 million reflecting an effective tax rate of approximately 33%.

	§		EPS before special items is expected to be approximately $0.38.

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Special Items

The Company recorded net credits of $4 million (after-tax) for special items in the fourth quarter of 2006 compared to $3 million of net charges (after-tax) in the same period of 2005.

Special items in the fourth quarter of 2006 primarily relate to restructuring and other special charges, and additional one-time income tax benefits realized in connection with the Host transaction.

The following represents a reconciliation of income from continuing operations before special items to income from continuing operations after special items (in millions, except per share data):


Three Months Ended							Year Ended
December 31,							December 31,
2006			2005				2006			2005
$	199		$	162		Income from continuing operations before special items	$	607		$	526

$	0.92		$	0.71		EPS before special items	$	2.73		$	2.34


						Special Items
	(9	)		(13	)	Restructuring and other special charges, net ^(a)		(20	)		(13	)
	—			—		Debt defeasance costs ^(b)		(37	)		—
	—			—		Debt extinguishment costs ^(c)		(7	)		—
	(4	)		2		(Loss) gain on asset dispositions and impairments, net ^(d)		(3	)		(30	)

	(13	)		(11	)	Total special items – pre-tax		(67	)		(43	)
	7			5		Income tax benefit for special items ^(e)		28			16
	10			—		Income tax benefits related to the transaction with Host ^(f)		524			—
	—			—		Tax expense and repatriation of foreign earnings		—			(47	)
	—			3		Reserves and credits associated with tax matters ^(g)		23			(29	)

	4			(3	)	Total special items – after-tax		508			(103	)


$	203		$	159		Income from continuing operations	$	1,115		$	423

$	0.94		$	0.70		EPS including special items	$	5.01		$	1.88


(a)		During the three months ended December 31, 2006, the loss is primarily related to severance costs related to certain executives and transition costs associated with the Le Méridien transaction. For the twelve months ended December 31, 2006, the charge includes additional Le Méridien transition costs offset, in part, by the reversal of ITT acquisition reserves. During 2005, the Company recorded $13 million primarily related to severance costs in connection with the Company’s restructuring as a result of its planned disposition of significant real estate assets and Le Méridien transition costs.

(b)		During the three months ended March 31, 2006, the Company completed two transactions whereby it was released from certain debt obligations that allowed Starwood to sell certain hotels that previously served as collateral for such debt. The Company incurred expenses totaling $37 million in connection with the early extinguishment of these debt obligations. These expenses are reflected in interest expense in the Company’s consolidated statement of income.

(c)		During the three months ended June 30, 2006, the Company incurred costs of approximately $7 million related to the early extinguishment of $150 million of debentures issued by its former subsidiary, Sheraton Holding Corporation. These expenses are reflected in interest expense in the Company’s consolidated statement of income.

(d)		For the three months ended December 31, 2006, primarily reflects $20 million in losses recognized in connection with the impairment of two properties, one of which is expected to be demolished and rebuilt under the aloft and Element brands and another which represents land that was sold to a developer who plans to build a Starwood hotel, partially offset by a $16 million gain on the sale of the Company’s interest in a joint venture. For the twelve months ended December 31, 2006, the balance also includes losses and impairment charges of approximately $54 million on the sale of hotels offset by gains on the sale of hotels and joint ventures and insurance proceeds of approximately $55 million. The three months ended December 31, 2005 reflect gains recorded on 3 hotel sales and the loss for the twelve months ended December 31, 2005 is related to losses on the sale or impairment of hotels.

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(e)		Represents taxes on special items at the Company’s incremental tax rate.

(f)		Primarily relates to a deferred tax asset recognized on the deferred gain and other one-time tax benefits realized in connection with the Host sale.

(g)		Income tax benefit for the year ended December 31, 2006 primarily relates to the reversal of tax reserves no longer deemed necessary as the related contingencies have been resolved. Income tax expense in the three and twelve months ended December 31, 2005 is due to increases in tax reserves related to the Company’s 1998 disposition of the World Directories business, offset by tax refunds related to the 1995 split-up of ITT Corporation.

The Company has included the above supplemental information concerning special items to assist investors in analyzing Starwood’s financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core on-going operations.

Starwood will be conducting a conference call to discuss the fourth quarter financial results at 10:30 a.m. (EST) today at (719) 457-2698. The conference call will be available through simultaneous webcast in the Investor Relations/Press Releases section of the Company’s website at http://www.starwoodhotels.com. A replay of the conference call will also be available from 12:30 p.m. (EST) today through Thursday, February 8 at 12:00 midnight (EST) on both the Company’s website and via telephone replay at (719) 457-0820 (access code 4726733).

Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations. All references to “net capital expenditures” mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and amortization. The Company believes that EBITDA is a useful measure of the Company’s operating performance due to the significance of the Company’s long-lived assets and level of indebtedness. EBITDA is a commonly used measure of performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company’s operating performance. It also facilitates comparisons between the Company and its competitors. The Company’s management has historically adjusted EBITDA (i.e., “Adjusted EBITDA”) when evaluating operating performance for the total Company as well as for individual properties or groups of properties because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items, such as revenues and costs and expenses from hotels sold, restructuring and other special charges and gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. The Company’s management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. Due to guidance from the Securities and Exchange Commission, the Company now does not reflect such items when calculating EBITDA; however, the Company continues to adjust for these special items and refers to this measure as Adjusted EBITDA. The Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and provides a means to evaluate the results of its core on-going operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be considered

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as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies and, therefore, comparability may be limited.

All references to Same-Store Owned Hotels reflect the Company’s owned, leased and consolidated joint venture hotels, excluding hotels sold to date, undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed due to seasonality or hurricane damage). REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology.

All references to management and franchise revenues represent base and incentive fees, franchise fees, amortization of deferred gains resulting from the sales of hotels subject to long-term management contracts and termination fees offset by payments by Starwood under performance and other guarantees.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 870 properties in more than 100 countries and 145,000 employees at its owned and managed properties. Starwood^® Hotels is a fully integrated owner, operator and franchisor of hotels and resorts with the following internationally renowned brands: St. Regis^®, The Luxury Collection^®, W^®, Westin^®, Le Méridien^®, Sheraton^®, Four Points^® by Sheraton, aloft (SM), and Element (SM). Starwood Hotels also owns Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwoodhotels.com.

** Please contact Starwood’s new, toll-free media hotline at (866) 4-STAR-PR
(866-478-2777) for photography or additional information.**

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. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, business and financing conditions, foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions, and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Future vacation ownership units indicated in this press release include planned units on land owned by the Company or by joint ventures in which the Company has an interest that have received all major governmental land use approvals for the development of vacation ownership resorts. There can be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated. 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.

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per Share data)


Three Months Ended										Year Ended
December 31,										December 31,
						%										%
2006			2005			Variance				2006			2005			Variance
									Revenues

$	602		$	894			(32.7	)	Owned, leased and consolidated joint venture hotels	$	2,692		$	3,517			(23.5	)
	322			192			67.7		Vacation ownership and residential sales and services^(a)		1,005			889			13.0
	209			152			37.5		Management fees, franchise fees and other income		697			501			39.1
	439			278			57.9		Other revenues from managed and franchised properties ^(b)		1,585			1,070			48.1

	1,572			1,516			3.7				5,979			5,977			0.0
									Costs and Expenses
	448			672			33.3		Owned, leased and consolidated joint venture hotels		2,023			2,634			23.2
	204			158			(29.1	)	Vacation ownership and residential		736			661			(11.3	)
	128			96			(33.3	)	Selling, general, administrative and other		470			370			(27.0	)
	9			13			30.8		Restructuring and other special charges, net		20			13			(53.8	)
	70			82			14.6		Depreciation		280			387			27.6
	5			7			28.6		Amortization		26			20			(30.0	)
	439			278			(57.9	)	Other expenses from managed and franchised properties ^(b)		1,585			1,070			(48.1	)

	1,303			1,306			0.2				5,140			5,155			0.3
	269			210			28.1		Operating income		839			822			2.1
	—			25			(100.0	)	Gain on sale of VOI notes receivable		—			25			(100.0	)
	15			24			(37.5	)	Equity earnings and gains and losses from unconsolidated ventures, net		61			64			(4.7	)
	(40	)		(58	)		31.0		Interest expense, net of interest income of $3, $8, $29 and $19		(215	)		(239	)		10.0
	(4	)		2			n/m		(Loss) gain on asset dispositions and impairments, net		(3	)		(30	)		90.0

	240			203			18.2		Income from continuing operations before taxes and minority equity		682			642			6.2
	(36	)		(44	)		n/m		Income tax (expense) benefit		434			(219	)		n/m
	(1	)		—			n/m		Minority equity in net income		(1	)		—			n/m

	203			159			n/m		Income from continuing operations		1,115			423			n/m
									Discontinued Operations:
	—			—			—		Loss from operations		—			(1	)		n/m
	(2	)		—			n/m		Net loss on dispositions		(2	)		—			n/m
	2			—			n/m		Cumulative effect of accounting change		(70	)		—			n/m

$	203		$	159			n/m		Net income	$	1,043		$	422			n/m

									Earnings (Loss) Per Share — Basic
$	0.98		$	0.72			n/m		Continuing operations	$	5.25		$	1.95			n/m
	(0.01	)		—			n/m		Discontinued operations		(0.01	)		—			n/m
	—			—			—		Cumulative effect of accounting change		(0.33	)		—			n/m

$	0.97		$	0.72			n/m		Net income	$	4.91		$	1.95			n/m

									Earnings (Loss) Per Share — Diluted
$	0.94		$	0.70			n/m		Continuing operations	$	5.01		$	1.88			n/m
	(0.01	)		—			n/m		Discontinued operations		(0.01	)		—			n/m
	—			—			—		Cumulative effect of accounting change		(0.31	)		—			n/m

$	0.93		$	0.70			n/m		Net income	$	4.69		$	1.88			n/m


	208			219					Weighted average number of Shares		213			217

	217			228					Weighted average number of Shares assuming dilution		223			225


(a)		Includes gains on sales of vacation ownership notes receivable of $17 million in the three and twelve months ended December 31, 2006.

(b)		The Company includes in revenues the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin and includes in costs and expenses these reimbursed costs. These costs relate primarily to payroll costs at managed properties where the Company is the employer.

n/m = not meaningful

-12-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

CONSOLIDATED BALANCE SHEETS
(in millions, except share data)


	December 31,			December 31,
	2006			2005
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	183		$	897
Restricted cash		329			295
Accounts receivable, net of allowance for doubtful accounts of $49 and $50		593			642
Inventories		566			280
Prepaid expenses and other		139			169

Total current assets		1,810			2,283
Investments		436			403
Plant, property and equipment, net		3,831			4,169
Assets held for sale ^(a)		2			2,882
Goodwill and intangible assets, net		2,302			2,315
Deferred tax assets		530			40
Other assets ^(b)		381			402

	$	9,292		$	12,494


Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt ^(c)	$	805		$	1,219
Accounts payable		179			156
Accrued expenses		955			1,049
Accrued salaries, wages and benefits		383			297
Accrued taxes and other		153			158

Total current liabilities		2,475			2,879
Long-term debt ^(c)		1,827			2,849
Long-term debt held for sale ^(d)		—			77
Deferred tax liabilities		28			602
Other liabilities		1,928			851

		6,258			7,258

Minority interest		25			25
Commitments and contingencies
Stockholders’ equity:
Class A exchangeable preferred shares of the Trust; $0.01 par value; authorized 30,000,000 shares; outstanding 0 and 562,222 shares at December 31, 2006 and December 31, 2005, respectively		—			—
Class B exchangeable preferred shares of the Trust; $0.01 par value; authorized 15,000,000 shares; outstanding 0 and 24,627 shares at December 31, 2006 and December 31, 2005, respectively		—			—
Corporation common stock; $0.01 par value; authorized 1,050,000,000 shares; outstanding 213,484,439 and 217,218,781 shares at December 31, 2006 and December 31, 2005, respectively		2			2
Trust Class B shares of beneficial interest; $0.01 par value; authorized 1,000,000,000 shares; outstanding 0 and 217,218,781 shares at December 31, 2006 and December 31, 2005, respectively		—			2
Additional paid-in capital		2,286			5,412
Deferred compensation		—			(53	)
Accumulated other comprehensive loss		(227	)		(322	)
Retained earnings		948			170

Total stockholders’ equity		3,009			5,211

	$	9,292		$	12,494


(a)		At December 31, 2006, reflects land which is considered held for sale. At December 31, 2005, includes 33 hotels that were sold in the second quarter of 2006 in connection with the definitive agreement signed on November 14, 2005 with Host Hotels & Resorts, Inc. and 3 hotels that had signed definitive agreements at December 31, 2005 and were sold in the first quarter of 2006.

(b)		Includes restricted cash of $7 million and $12 million at December 31, 2006 and December 31, 2005, respectively.

(c)		Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $484 million and $469 million at December 31, 2006 and December 31, 2005, respectively.

(d)		Represents the debt that was assumed by Host in connection with the definitive agreement signed on November 14, 2005.

-13-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations — Historical Data
(in millions)


Three Months Ended										Year Ended
December 31,										December 31,
2006			2005			% Variance				2006			2005		% Variance
									Reconciliation of Net Income to EBITDA and Adjusted EBITDA
$	203		$	159			n/m		Net income	$	1,043		$	422		n/m
	47			76			(38.2	)	Interest expense^(a)		263			283		(7.1	)
	38			44			n/m		Income tax (benefit) expense^(b)		(432	)		218		n/m
	78			93			(16.1	)	Depreciation^(c)		311			423		(26.5	)
	6			8			(25.0	)	Amortization ^(d)		31			26		19.2

	372			380			(2.1	)	EBITDA		1,216			1,372		(11.4	)
	4			(2	)		n/m		Loss (gain) on asset dispositions and impairments, net		3			30		(90.0	)
	9			13			(30.8	)	Restructuring and other special charges, net		20			13		53.8
	—			—			—		Discontinued operations		—			2		n/m
	(2	)		—			n/m		Cumulative effect of accounting change		70			—		n/m

$	383		$	391			(2.0	)	Adjusted EBITDA	$	1,309		$	1,417		(7.6	)


(a)		Includes $4 million and $10 million of interest expense related to unconsolidated joint ventures for the three months ended December 31, 2006 and 2005, respectively, and $19 million and $25 million for the year ended December 31, 2006 and 2005, respectively.

(b)		Includes $2 million and $0 million of tax (benefit) expense recorded in discontinued operations for the three months ended December 31, 2006 and 2005, respectively, and $2 million and $1 million for the year ended December 31, 2006 and 2005, respectively.

(c)		Includes $8 million and $11 million of Starwood’s share of depreciation expense of unconsolidated joint ventures for the three months ended December 31, 2006 and 2005, respectively, and $31 million and $36 million for the year ended December 31, 2006 and 2005, respectively.

(d)		Includes $1 million of Starwood’s share of amortization expense of unconsolidated joint ventures for the three months ended December 31, 2006 and 2005, and $5 million and $6 million for the year ended December 31, 2006 and 2005, respectively.

-14-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations — Future Performance
(In millions)


Three Months Ended			Year Ended
March 31, 2007			December 31, 2007
$	83	Net income	$	543
	46	Interest expense		184
	41	Income tax expense		268
	85	Depreciation and amortization		340

	255	EBITDA		1,335
	—	Gain on asset disposition and impairments, net		—
	—	Restructuring and other special charges, net		—

$	255	Adjusted EBITDA	$	1,335


Three Months Ended			Year Ended
March 31, 2007			December 31, 2007
$	83	Income from continuing operations		543

$	0.38	EPS	$	2.50


		Special Items
	—	Restructuring and other special charges, net		—
	—	Gain on asset dispositions and impairments, net		—

	—	Total special items — pre-tax		—
	—	Income tax (benefit) expense on special items		—

	—	Total special items — after-tax		—


$	83	Income from continuing operations excluding special items	$	543

$	0.38	EPS excluding special items	$	2.50

-15-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses
(In millions)


Three Months Ended								Year Ended
December 31,								December 31,
				%			Same-Store Owned Hotels ⁽¹⁾					%
2006		2005		Variance			Worldwide	2006		2005		Variance
							Revenue
$	512	$	466		9.8		Same-Store Owned Hotels	$	1,942	$	1,785		8.8
	2		358		(99.3	)	Hotels Sold or Closed in 2006 and 2005 (56 hotels)		384		1,422		(73.0	)
	88		70		27.2		Hotels Without Comparable Results (11 hotels)		359		304		18.3
	—		—		—		Other ancillary hotel operations		7		6		7.7

$	602	$	894		(32.7	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	2,692	$	3,517		(23.5	)


							Costs and Expenses
$	377	$	356		(6.1	)	Same-Store Owned Hotels	$	1,443	$	1,361		(6.0	)
	1		254		99.7		Hotels Sold or Closed in 2006 and 2005 (56 hotels)		293		1,026		71.4
	70		62		13.5		Hotels Without Comparable Results (11 hotels)		283		243		(16.4	)
	—		—		—		Other ancillary hotel operations		4		4		(2.1	)

$	448	$	672		33.3		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	2,023	$	2,634		23.2


Three Months Ended								Year Ended
December 31,								December 31,
				%			Same-Store Owned Hotels					%
2006		2005		Variance			North America	2006		2005		Variance
							Revenue
$	332	$	309		7.3		Same-Store Owned Hotels	$	1,255	$	1,148		9.3
	1		298		(99.7	)	Hotels Sold or Closed in 2006 and 2005 (45 hotels)		311		1,168		(73.4	)
	76		62		23.9		Hotels Without Comparable Results (8 hotels)		315		255		23.4

$	409	$	669		(38.8	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	1,881	$	2,571		(26.8	)


							Costs and Expenses
$	245	$	233		(5.5	)	Same-Store Owned Hotels	$	925	$	868		(6.5	)
	1		210		(99.7	)	Hotels Sold or Closed in 2006 and 2005 (45 hotels)		242		846		(71.3	)
	61		54		13.2		Hotels Without Comparable Results (8 hotels)		250		208		20.5

$	307	$	497		38.2		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	1,417	$	1,922		26.3


Three Months Ended								Year Ended							`
December 31,								December 31,
				%			Same-Store Owned Hotels					%
2006		2005		Variance			International	2006		2005		Variance
							Revenue
$	180	$	157		14.7		Same-Store Owned Hotels	$	687	$	637		7.8
	1		60		(97.9	)	Hotels Sold or Closed in 2006 and 2005 (11 hotels)		73		254		(71.2	)
	12		8		54.5		Hotels Without Comparable Results (3 hotels)		44		49		(8.6	)
	—		—		—		Other ancillary hotel operations		7		6		7.7

$	193	$	225		(14.3	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	811	$	946		(14.3	)


							Costs and Expenses
$	132	$	123		(7.3	)	Same-Store Owned Hotels	$	518	$	493		(5.1	)
	—		44		(100.1	)	Hotels Sold or Closed in 2006 and 2005 (11 hotels)		51		180		(71.5	)
	9		8		15.5		Hotels Without Comparable Results (3 hotels)		33		35		(7.8	)
	—		—		—		Other ancillary hotel operations		4		4		2.1

$	141	$	175		19.3		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	606	$	712		14.9


(1)		Same-Store Owned Hotel Results exclude 56 hotels sold or closed in 2006 and 2005 and 11 hotels without comparable results;

-16-

Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results — Same Store
For the Three Months Ended December 31, 2006
UNAUDITED


	System Wide ⁽¹⁾ - Worldwide									System Wide ⁽¹⁾ - North America									System Wide ⁽¹⁾ - International
	2006			2005			Var.			2006			2005			Var.			2006			2005			Var.
TOTAL HOTELS
REVPAR ($)		109.09			97.90			11.4	%		108.66			99.59			9.1	%		109.80			95.11			15.4	%
ADR ($)		160.67			147.02			9.3	%		159.26			148.20			7.5	%		163.02			145.01			12.4	%
OCCUPANCY (%)		67.9	%		66.6	%		1.3			68.2	%		67.2	%		1.0			67.4	%		65.6	%		1.8

SHERATON
REVPAR ($)		99.48			88.80			12.0	%		97.89			90.92			7.7	%		101.33			86.34			17.4	%
ADR ($)		148.19			134.75			10.0	%		145.93			136.93			6.6	%		150.81			132.18			14.1	%
OCCUPANCY (%)		67.1	%		65.9	%		1.2			67.1	%		66.4	%		0.7			67.2	%		65.3	%		1.9

WESTIN
REVPAR ($)		125.18			113.74			10.1	%		122.67			111.77			9.8	%		133.12			119.96			11.0	%
ADR ($)		180.23			166.36			8.3	%		176.46			163.43			8.0	%		192.24			175.60			9.5	%
OCCUPANCY (%)		69.5	%		68.4	%		1.1			69.5	%		68.4	%		1.1			69.2	%		68.3	%		0.9

ST. REGIS/LUXURY COLLECTION
REVPAR ($)		199.39			171.83			16.0	%		190.85			164.99			15.7	%		205.81			176.98			16.3	%
ADR ($)		311.48			286.57			8.7	%		292.05			275.74			5.9	%		326.65			294.70			10.8	%
OCCUPANCY (%)		64.0	%		60.0	%		4.0			65.4	%		59.8	%		5.6			63.0	%		60.1	%		2.9

W
REVPAR ($)		233.81			209.66			11.5	%		243.07			214.21			13.5	%		145.26			166.22			-12.6	%
ADR ($)		310.49			287.82			7.9	%		314.79			289.08			8.9	%		254.84			273.17			-6.7	%
OCCUPANCY (%)		75.3	%		72.8	%		2.5			77.2	%		74.1	%		3.1			57.0	%		60.8	%		-3.8

FOUR POINTS
REVPAR ($)		65.94			59.65			10.5	%		63.57			57.82			9.9	%		72.71			65.03			11.8	%
ADR ($)		99.93			92.90			7.6	%		98.23			91.80			7.0	%		104.44			95.92			8.9	%
OCCUPANCY (%)		66.0	%		64.2	%		1.8			64.7	%		63.0	%		1.7			69.6	%		67.8	%		1.8

OTHER
REVPAR ($)		108.66			105.23			3.3	%		108.66			105.23			3.3	%
ADR ($)		139.09			131.30			5.9	%		139.09			131.30			5.9	%
OCCUPANCY (%)		78.1	%		80.1	%		-2.0			78.1	%		80.1	%		-2.0


(1)		Includes same store owned, leased, managed, and franchised hotels

-17-

Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results — Same Store
For the Three Months Ended December 31, 2006
UNAUDITED


	System Wide ⁽¹⁾									Company Operated ⁽²⁾
	2006			2005			Var.			2006			2005			Var.
TOTAL WORLDWIDE
REVPAR ($)		109.09			97.90			11.4	%		125.12			111.49			12.2	%
ADR ($)		160.67			147.02			9.3	%		179.72			163.70			9.8	%
OCCUPANCY (%)		67.9	%		66.6	%		1.3			69.6	%		68.1	%		1.5

NORTH AMERICA
REVPAR ($)		108.66			99.59			9.1	%		133.35			121.87			9.4	%
ADR ($)		159.26			148.20			7.5	%		187.27			173.32			8.0	%
OCCUPANCY (%)		68.2	%		67.2	%		1.0			71.2	%		70.3	%		0.9

EUROPE
REVPAR ($)		122.74			104.92			17.0	%		138.59			117.02			18.4	%
ADR ($)		185.48			165.18			12.3	%		206.87			183.97			12.4	%
OCCUPANCY (%)		66.2	%		63.5	%		2.7			67.0	%		63.6	%		3.4

AFRICA & MIDDLE EAST
REVPAR ($)		104.71			83.88			24.8	%		104.85			84.01			24.8	%
ADR ($)		158.70			136.37			16.4	%		159.39			136.58			16.7	%
OCCUPANCY (%)		66.0	%		61.5	%		4.5			65.8	%		61.5	%		4.3

ASIA PACIFIC
REVPAR ($)		110.10			98.98			11.2	%		107.78			96.01			12.3	%
ADR ($)		158.43			142.24			11.4	%		154.63			139.32			11.0	%
OCCUPANCY (%)		69.5	%		69.6	%		-0.1			69.7	%		68.9	%		0.8

LATIN AMERICA
REVPAR ($)		81.06			72.03			12.5	%		90.40			80.74			12.0	%
ADR ($)		122.82			111.29			10.4	%		137.32			124.20			10.6	%
OCCUPANCY (%)		66.0	%		64.7	%		1.3			65.8	%		65.0	%		0.8


(1)		Includes same store owned, leased, managed, and franchised hotels

(2)		Includes same store owned, leased, and managed hotels

-18-

Starwood Hotels & Resorts Worldwide, Inc.
Owned Hotel Results — Same Store ⁽¹⁾
For the Three Months Ended December 31, 2006
UNAUDITED


	WORLDWIDE									NORTH AMERICA									INTERNATIONAL
	2006			2005			Var.			2006			2005			Var.			2006			2005			Var.
	75 Hotels									44 Hotels									31 Hotels
TOTAL HOTELS
REVPAR ($)		139.00			125.33			10.9	%		137.63			127.63			7.8	%		141.80			120.65			17.5	%
ADR ($)		199.48			183.64			8.6	%		197.99			184.33			7.4	%		202.49			182.17			11.2	%
OCCUPANCY (%)		69.7	%		68.2	%		1.5			69.5	%		69.2	%		0.3			70.0	%		66.2	%		3.8

Total REVENUE		511,681			466,202			9.8	%		332,035			309,567			7.3	%		179,646			156,635			14.7	%
Total EXPENSES		377,443			355,645			6.1	%		245,129			232,357			5.5	%		132,314			123,288			7.3	%


	66 Hotels							35 Hotels							31 Hotels
BRANDED HOTELS
REVPAR ($)		143.81		128.80		11.7	%		144.96		133.47		8.6	%		141.80		120.65		17.5	%
ADR ($)		203.59		187.09		8.8	%		204.21		189.75		7.6	%		202.49		182.17		11.2	%
OCCUPANCY (%)		70.6	%	68.8	%	1.8			71.0	%	70.3	%	0.7			70.0	%	66.2	%	3.8

Total REVENUE		478,388		432,510		10.6	%		298,742		275,875		8.3	%		179,646		156,635		14.7	%
Total EXPENSES		349,995		328,535		6.5	%		217,681		205,247		6.1	%		132,314		123,288		7.3	%


(1)		Hotel Results exclude 50 hotels sold and 10 hotels without comparable results during 2005 & 2006

-19-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Three Months Ended December 31, 2006
UNAUDITED ($ millions)


	Worldwide
	2006		2005		Variance		% Variance
Management Fees:
Base Fees		65		41		24		58.5	%
Incentive Fees		42		27		15		55.6	%

Total Management Fees		107		68		39		57.4	%

Franchise Fees		31		23		8		34.8	%


Total Management & Franchise Fees		138		91		47		51.6	%

Other Management & Franchise Revenues ⁽¹⁾		23		13		10		76.9	%


Total Management & Franchise Revenues		161		104		57		54.8	%


Other ⁽²⁾		48		48		0		—


Management Fees, Franchise Fees and Other Income		209		152		57		37.5	%


(1)		Other Management & Franchise Fees primarily includes the amortization of deferred gains of approximately $20 million in 2006 and $3 million in 2005 resulting from the sales of hotels subject to long-term management contracts and termination fees.

(2)		Other primarily includes revenues from Bliss and other miscellaneous revenue.

-20-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Three Months Ended December 31, 2006
UNAUDITED ($ millions)


	2006		2005			% Variance
Originated Sales Revenues⁽¹⁾ — Vacation Ownership Sales		176		153			15.0	%
Other Sales and Services Revenues ⁽²⁾		52		29			79.3	%
Deferred Revenues — Percentage of Completion		70		(25	)		n/m
Deferred Revenues — Other ⁽³⁾		12		(8	)		n/m

Vacation Ownership Sales and Services Revenues		310		149			108.1	%
Residential Sales and Services Revenues		12		43			(72.1	%)

Total Vacation Ownership & Residential Sales and Services Revenues		322		192			67.7	%


Originated Sales Expenses⁽⁴⁾ — Vacation Ownership Sales		109		104			(4.8	%)
Other Expenses ⁽⁵⁾		41		38			(7.9	%)
Deferred Expenses — Percentage of Completion		33		(17	)		n/m
Deferred Expenses — Other		10		(5	)		(300.0	%)

Vacation Ownership Expenses		193		120			(60.8	%)
Residential Expenses		11		38			71.1	%

Total Vacation Ownership & Residential Expenses		204		158			(29.1	%)


(1)		Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2)		Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues

(3)		Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of SFAS No. 66 or SFAS No. 152 and, in 2006, provision for loan loss

(4)		Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(5)		Includes resort, general and administrative, and other miscellaneous expenses

Note: Deferred revenue is calculated based on the Percentage of Completion (“POC”) of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are no longer deferred per SFAS 152 as of January 1, 2006.

- 21 -

Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results — Same Store
For the Twelve Months Ended December 31, 2006
UNAUDITED


	System Wide⁽¹⁾ - Worldwide									System Wide⁽¹⁾ - North America									System Wide⁽¹⁾ - International
	2006			2005			Var.			2006			2005			Var.			2006			2005			Var.
TOTAL HOTELS
REVPAR ($)		109.66			99.82			9.9	%		111.52			101.93			9.4	%		106.52			96.30			10.6	%
ADR ($)		156.51			144.23			8.5	%		154.76			143.27			8.0	%		159.69			145.96			9.4	%
OCCUPANCY (%)		70.1	%		69.2	%		0.9			72.1	%		71.1	%		1.0			66.7	%		66.0	%		0.7

SHERATON
REVPAR ($)		98.71			89.81			9.9	%		101.38			93.38			8.6	%		95.53			85.55			11.7	%
ADR ($)		143.56			131.21			9.4	%		143.13			132.28			8.2	%		144.11			129.85			11.0	%
OCCUPANCY (%)		68.8	%		68.4	%		0.4			70.8	%		70.6	%		0.2			66.3	%		65.9	%		0.4

WESTIN
REVPAR ($)		127.47			116.62			9.3	%		126.64			114.89			10.2	%		130.08			122.05			6.6	%
ADR ($)		176.56			164.24			7.5	%		172.64			159.46			8.3	%		189.75			180.17			5.3	%
OCCUPANCY (%)		72.2	%		71.0	%		1.2			73.4	%		72.0	%		1.4			68.6	%		67.7	%		0.9

ST. REGIS/LUXURY COLLECTION
REVPAR ($)		215.39			191.22			12.6	%		204.55			179.79			13.8	%		222.39			198.89			11.8	%
ADR ($)		318.86			296.40			7.6	%		285.84			267.32			6.9	%		342.35			317.33			7.9	%
OCCUPANCY (%)		67.5	%		64.5	%		3.0			71.6	%		67.3	%		4.3			65.0	%		62.7	%		2.3

W
REVPAR ($)		212.51			188.87			12.5	%		220.86			195.93			12.7	%		132.76			121.53			9.2	%
ADR ($)		280.14			256.55			9.2	%		282.83			257.99			9.6	%		243.38			236.30			3.0	%
OCCUPANCY (%)		75.9	%		73.6	%		2.3			78.1	%		75.9	%		2.2			54.5	%		51.4	%		3.1

FOUR POINTS
REVPAR ($)		67.91			61.76			10.0	%		66.23			60.23			10.0	%		72.79			66.23			9.9	%
ADR ($)		98.33			91.64			7.3	%		96.36			89.33			7.9	%		103.92			98.37			5.6	%
OCCUPANCY (%)		69.1	%		67.4	%		1.7			68.7	%		67.4	%		1.3			70.0	%		67.3	%		2.7

OTHER
REVPAR ($)		109.89			106.11			3.6	%		109.89			106.11			3.6	%
ADR ($)		132.91			131.43			1.1	%		132.91			131.43			1.1	%
OCCUPANCY (%)		82.7	%		80.7	%		2.0			82.7	%		80.7	%		2.0


(1)		Includes same store owned, leased, managed, and franchised hotels

- 22 -

Starwood Hotels & Resorts Worldwide, Inc.
Worldwide Hotel Results — Same Store
For the Twelve Months Ended December 31, 2006
UNAUDITED


	System Wide ⁽¹⁾									Company Operated ⁽²⁾
	2006			2005			Var.			2006			2005			Var.
TOTAL WORLDWIDE
REVPAR ($)		109.66			99.82			9.9	%		123.27			111.99			10.1	%
ADR ($)		156.51			144.23			8.5	%		172.72			158.84			8.7	%
OCCUPANCY (%)		70.1	%		69.2	%		0.9			71.4	%		70.5	%		0.9

NORTH AMERICA
REVPAR ($)		111.52			101.93			9.4	%		132.82			121.12			9.7	%
ADR ($)		154.76			143.27			8.0	%		178.26			164.79			8.2	%
OCCUPANCY (%)		72.1	%		71.1	%		1.0			74.5	%		73.5	%		1.0

EUROPE
REVPAR ($)		129.20			116.40			11.0	%		143.65			128.84			11.5	%
ADR ($)		192.29			179.57			7.1	%		210.31			197.40			6.5	%
OCCUPANCY (%)		67.2	%		64.8	%		2.4			68.3	%		65.3	%		3.0

AFRICA & MIDDLE EAST
REVPAR ($)		95.96			84.21			14.0	%		96.78			84.98			13.9	%
ADR ($)		145.48			125.29			16.1	%		145.61			124.88			16.6	%
OCCUPANCY (%)		66.0	%		67.2	%		-1.2			66.5	%		68.0	%		-1.5

ASIA PACIFIC
REVPAR ($)		100.07			92.79			7.8	%		97.89			91.40			7.1	%
ADR ($)		148.43			137.07			8.3	%		144.30			134.68			7.1	%
OCCUPANCY (%)		67.4	%		67.7	%		-0.3			67.8	%		67.9	%		-0.1

LATIN AMERICA
REVPAR ($)		76.86			67.04			14.6	%		85.89			75.09			14.4	%
ADR ($)		119.48			106.90			11.8	%		134.79			118.38			13.9	%
OCCUPANCY (%)		64.3	%		62.7	%		1.6			63.7	%		63.4	%		0.3


(1)		Includes same store owned, leased, managed, and franchised hotels

(2)		Includes same store owned, leased, and managed hotels

-23-

Starwood Hotels & Resorts Worldwide, Inc.
Owned Hotel Results — Same Store ⁽¹⁾
For the Twelve Months Ended December 31, 2006
UNAUDITED


	WORLDWIDE									NORTH AMERICA									INTERNATIONAL
	2006			2005			Var.			2006			2005			Var.			2006			2005			Var.
	74 Hotels									43 Hotels									31 Hotels
TOTAL HOTELS
REVPAR ($)		136.33			123.80			10.1	%		135.46			122.94			10.2	%		138.05			125.51			10.0	%
ADR ($)		191.56			177.04			8.2	%		185.61			170.47			8.9	%		204.33			191.38			6.8	%
OCCUPANCY (%)		71.2	%		69.9	%		1.3			73.0	%		72.1	%		0.9			67.6	%		65.6	%		2.0

Total REVENUE		1,941,796			1,785,090			8.8	%		1,255,149			1,148,297			9.3	%		686,647			636,793			7.8	%
Total EXPENSES		1,442,812			1,361,570			6.0	%		924,766			868,535			6.5	%		518,046			493,035			5.1	%


	65 Hotels							34 Hotels							31 Hotels
BRANDED HOTELS
REVPAR ($)		140.20		126.90		10.5	%		141.47		127.72		10.8	%		138.05		125.51		10.0	%
ADR ($)		195.70		180.37		8.5	%		191.08		174.57		9.5	%		204.33		191.38		6.8	%
OCCUPANCY (%)		71.6	%	70.4	%	1.2			74.0	%	73.2	%	0.8			67.6	%	65.6	%	2.0

Total REVENUE		1,805,444		1,650,788		9.4	%		1,118,797		1,013,995		10.3	%		686,647		636,793		7.8	%
Total EXPENSES		1,332,566		1,254,812		6.2	%		814,520		761,777		6.9	%		518,046		493,035		5.1	%


(1)		Hotel Results exclude 56 hotels sold and 11 hotels without comparable results during 2005 & 2006

-24-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Management Fees, Franchise Fees and Other Income
For the Twelve Months Ended December 31, 2006
UNAUDITED ($ millions)


	Worldwide
	2006		2005		Variance			% Variance
Management Fees:
Base Fees		234		146		88			60.3	%
Incentive Fees		132		80		52			65.0	%

Total Management Fees		366		226		140			61.9	%

Franchise Fees		118		96		22			22.9	%


Total Management & Franchise Fees		484		322		162			50.3	%

Other Management & Franchise Revenues ⁽¹⁾		80		40		40			100.0	%


Total Management & Franchise Revenues		564		362		202			55.8	%


Other ⁽²⁾		133		139		(6	)		(4.3	)%


Management Fees, Franchise Fees and Other Income		697		501		196			39.1	%


(1)		Other Management & Franchise Fees primarily includes the amortization of deferred gains of approximately $62 million in 2006 and $12 million in 2005 resulting from the sales of hotels subject to long-term management contracts and termination fees.

(2)		Other primarily includes revenues from Bliss and other miscellaneous revenue.

-25-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Vacation Ownership & Residential Revenues and Expenses
For the Twelve Months Ended December 31, 2006
UNAUDITED ($ millions)


	2006		2005			% Variance
Originated Sales Revenues⁽¹⁾ — Vacation Ownership Sales		739		620			19.2	%
Other Sales and Services Revenues ⁽²⁾		156		112			39.3	%
Deferred Revenues — Percentage of Completion		—		(23	)		n/m
Deferred Revenues — Other ⁽³⁾		10		(6	)		n/m

Vacation Ownership Sales and Services Revenues		905		703			28.7	%
Residential Sales and Services Revenues		100		186			(46.2	%)

Total Vacation Ownership & Residential Sales and Services Revenues		1,005		889			13.0	%


Originated Sales Expenses⁽⁴⁾ — Vacation Ownership Sales		471		405			(16.3	%)
Other Expenses ⁽⁵⁾		159		129			(23.3	%)
Deferred Expenses — Percentage of Completion		—		(16	)		n/m
Deferred Expenses — Other		29		(4	)		n/m

Vacation Ownership Expenses		659		514			(28.2	%)
Residential Expenses		77		147			47.6	%

Total Vacation Ownership & Residential Expenses		736		661			(11.3	%)


(1)		Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2)		Includes resort income, interest income, gain on sale of notes receivable, and miscellaneous other revenues

(3)		Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of SFAS No. 66 or SFAS No. 152 and, in 2006, provision for loan loss

(4)		Timeshare cost of sales and sales & marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(5)		Includes resort, general and administrative, and other miscellaneous expenses

-26-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Debt Portfolio Summary
As of December 31, 2006
UNAUDITED


	Interest	Balance						Interest			Avg Maturity
Debt	Terms	(in millions)			% of Portfolio			Rate			(in years)
Floating Rate Debt:

Senior credit facility
Revolving credit facility	Various + .475%	$	435			17	%		5.77	%		4.1

			435			17	%		5.77	%		4.1

Mortgages and other	Various		132			5	%		7.10	%		1.5

Interest rate swaps	LIBOR + 4.23%		300			11	%		9.59	%


Total Floating			867			33	%		7.30	%		3.5

Fixed Rate Debt:

Sheraton Holding public debt			449			17	%		7.38	%		8.9

Senior notes ⁽¹⁾			1,481			56	%		6.70	%		3.0

Mortgages and other			135			5	%		7.49	%		8.3

Interest rate swaps			(300	)		-11	%		7.88	%


Total Fixed			1,765			67	%		6.81	%		4.6


Total Debt		$	2,632			100	%		6.97	%		4.4



(1) Balance consists of outstanding public debt of $1.498 billion and a $5 million fair value adjustment related to the unamortized gain on fixed to floating interest rate swaps terminated in September 2002 and March 2004 and a ($22) million fair value adjustment related to current fixed to floating interest rate swaps.	Maturities

		<1 year	$	805

		2-3 years		45

		4-5 years		447
		>5 years		1,335

			$	2,632

-27-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Hotels without Comparable Results & Other Selected Items
As of December 31, 2006
UNAUDITED ($ millions)

Properties without comparable results in 2006:


*Property*		*Location*
W New Orleans — French Quarter		New Orleans, LA
W New Orleans		New Orleans, LA
St. Regis Aspen		Aspen, CO
Sheraton Bal Harbour Beach Resort		Bal Harbour, FL
St. Regis New York		New York, NY
Caesars Paradise Stream		Mount Pocono, PA
St. Regis Hotel, San Francisco		San Francisco, CA
Westin St. John Resort & Villas		St. John, Virgin Islands
The Westin Resort & Spa, Cancun		Cancun, Mexico
Sheraton Fiji		Nadi, Fiji
Westin Royal Denarau		Nadi, Fiji

Properties sold or closed in 2006 and 2005:


*Property*		*Location*
33 Hotels Sold to Host Hotels & Resorts		Various
Sheraton Denver Tech Center		Englewood, CO
Deerfield Beach Hilton		Ft. Lauderdale, FL
Raphael		Chicago, IL
Sheraton Chapel Hill		Chapel Hill, NC
St. Regis Washington, DC		Washington, DC
Sheraton Russell Hotel		New York, NY
Westin Philadelphia		Philadelphia, PA
Westin Princeton at Forrestal Village		Princeton, NJ
Sheraton Ft. Lauderdale Airport Hotel		Dania, FL
Westin Hotel Long Beach		Long Beach, CA
Sheraton Suites San Diego		San Diego, CA
Sheraton Framingham Hotel		Framingham, MA
Westin Embassy Row, Washington D.C.		Washington, DC
Westin Atlanta North at Perimeter		Atlanta, GA
Sheraton Suites Key West		Key West, FL
Sheraton Colony Square		Atlanta, GA
Sheraton Colonial Hotel & Golf Club		Lynnfield, MA
Sheraton Universal Hotel		Universal City, CA
Hotel Danieli		Venice, Italy
Sheraton Lisboa Hotel & Towers		Lisbon, Portugal
Sheraton Cancun Resort & Towers		Cancun, Mexico
Sheraton Inn Lexington		Lexington, MA
Sheraton Omaha Hotel		Omaha, NE

Selected Balance Sheet and Cash Flow Items:


Cash and cash equivalents (including restricted cash of $336 million)	$	519
Debt	$	2,632

Revenues and Expenses Associated with Assets Sold or Closed in 2005 and 2006 or Expected to be Sold in the First Quarter of 2007 ⁽¹⁾:


	Q1		Q2		Q3		Q4		Full Year
Hotels Sold in 2005:
2005
Revenues	$	36	$	41	$	28	$	18	$	123
Expenses (excluding depreciation)	$	29	$	27	$	20	$	14	$	90

Hotels Sold in 2006:
2006
Revenues	$	295	$	71	$	16	$	2	$	384
Expenses (excluding depreciation)	$	227	$	53	$	12	$	1	$	293

2005
Revenues	$	287	$	354	$	318	$	340	$	1,299
Expenses (excluding depreciation)	$	224	$	242	$	230	$	240	$	936

Hotels Classified as Held for Sale at December 31, 2006:

2006
Revenues	$	—	$	—	$	—	$	—	$	—
Expenses (excluding depreciation)	$	—	$	—	$	—	$	—	$	—

2005
Revenues	$	—	$	—	$	—	$	—	$	—
Expenses (excluding depreciation)	$	—	$	—	$	—	$	—	$	—


(1)		Results consist of 11 hotels sold in 2005, 45 hotels sold in 2006. There are no hotels classified as held for sale at December 31, 2006. These amounts are included in the revenues and expenses from owned, leased and consolidated joint venture hotels in 2006 and 2005.

-28-

Starwood Hotels & Resorts Worldwide, Inc.

2006 Divisional Hotel Inventory Summary by Ownership by Brand

December 31, 2006


	NAD				EAME				LAD				ASIA				Total
	Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms
Owned
Sheraton		13		6,298		8		1,711		5		2,713		2		831		28		11,553
Westin		8		4,030		5		1,068		3		901		1		273		17		6,272
Four Points		6		1,153		—		—		—		—		1		630		7		1,783
W		10		3,178		—		—		—		—		—		—		10		3,178
Luxury Collection		1		654		7		828		1		181		—		—		9		1,663
St. Regis		3		668		1		161		—		—		—		—		4		829
Other		10		2,482		—		—		—		—		—		—		10		2,482


Total Owned		51		18,463		21		3,768		9		3,795		4		1,734		85		27,760

Managed & UJV
Sheraton		55		28,536		76		22,639		14		2,749		46		15,993		191		69,917
Westin		47		25,616		14		3,708		—		—		13		5,199		74		34,523
Four Points		1		475		6		899		3		428		2		604		12		2,406
W		8		2,269		—		—		1		237		2		330		11		2,836
Luxury Collection		7		1,697		9		1,545		8		298		—		—		24		3,540
St. Regis		5		728		1		95		—		—		2		591		8		1,414
Le Meridien		5		1,058		71		16,912		2		626		24		5,993		102		24,589
Other		3		2,824		1		—		—		—		—		—		4		2,824


Total Managed & UJV		131		63,203		178		45,798		28		4,338		89		28,710		426		142,049

Franchised
Sheraton		127		38,974		26		6,663		5		1,655		19		7,097		177		54,389
Westin		29		10,477		3		1,135		3		598		5		1,226		40		13,436
Four Points		85		14,560		11		1,539		9		1,384		2		235		107		17,718
Luxury Collection		1		249		14		1,746		—		—		—		—		15		1,995
Le Meridien		4		1,342		11		3,924		1		213		5		2,772		21		8,251


Total Franchised		246		65,602		65		15,007		18		3,850		31		11,330		360		95,789

Systemwide

Sheraton		195		73,808		110		31,013		24		7,117		67		23,921		396		135,859
Westin		84		40,123		22		5,911		6		1,499		19		6,698		131		54,231
Four Points		92		16,188		17		2,438		12		1,812		5		1,469		126		21,907
W		18		5,447		—		—		1		237		2		330		21		6,014
Luxury Collection		9		2,600		30		4,119		9		479		—		—		48		7,198
St. Regis		8		1,396		2		256		—		—		2		591		12		2,243
Le Meridien		9		2,400		82		20,836		3		839		29		8,765		123		32,840
Other		13		5,306		1		—		—		—		—		—		14		5,306


Total Systemwide		428		147,268		264		64,573		55		11,983		124		41,774		871		265,598

-30-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Top 20 Owned and Consolidated Joint Venture Hotels

For the Year Ended December 31,2006


US Hotels	Location	Rooms

St. Regis New York	New York, NY	229
St. Regis Aspen	Aspen, CO	179

The Phoenician	Phoenix, AZ	654

W New York — Time Square	New York, NY	507
W Chicago Lakeshore	Chicago, IL	520
W San Francisco	San Francisco, CA	410
W Los Angeles Westwood	Los Angeles, CA	258
W Chicago — City Center	Chicago, IL	369
W New Orleans	New Orleans, LA	423
W New York — The Court	New York, NY	198
W Atlanta	Atlanta, GA	275
W New York — The Tuscany	New York, NY	120

Westin Maui Resort & Spa	Maui, HI	759
Westin Peachtree	Atlanta, GA	1068
Westin Horton Plaza San Diego	San Diego, CA	450
Westin Galleria Houston	Houston, TX	487
Westin San Francisco Airport	San Francisco, CA	393
Westin Fort Lauderdale	Fort Lauderdale, FL	293

Sheraton Manhattan Hotel	New York, NY	665
Sheraton Bal Harbour Beach Resort	Bal Harbour, FL	645
Sheraton Kauai Resort	Kauai, HI	394

Boston Park Plaza Hotel	Boston, MA	941


International Hotels	Location	Rooms

St. Regis Grand Hotel, Rome	Rome, Italy	161

Hotel Gritti Palace	Venice, Italy	91
Park Tower, Buenos Aires	Buenos Aires, Argentina	181
Hotel Alfonso XIII	Seville, Spain	147

The Westin Excelsior, Rome	Rome, Italy	319
The Westin Resort & Spa, Los Cabos	Los Cabos, Mexico	243
The Westin Resort & Spa Puerto Vallarta	Puerto Vallarta, Mexico	279
The Westin Excelsior, Florence	Florence, Italy	171
The Westin Resort & Spa Cancun	Cancun, Mexico	379
Westin St. John Resort & Villas	St John, Virgin Islands	174

Sheraton Centre Toronto Hotel	Toronto, Canada	1377
The Park Lane Hotel	London, England	302
Sheraton On The Park	Sydney, Australia	557
Sheraton Buenos Aires Hotel & Convention Center	Buenos Aires, Argentina	739
Sheraton Maria Isabel Hotel & Towers	Mexico City, Mexico	755
Sheraton Gateway Hotel in Toronto International Hotel	Toronto, Canada	474
Le Centre Sheraton Hotel	Montreal, Canada	825
Sheraton Paris Airport Hotel Charles de Gaulle	Paris, France	252

Top 40 hotels represent 85% of owned and consolidated joint venture earnings before depreciation


*		Excludes hotels sold to Host

-31-

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership Inventory Pipeline

As of December 31, 2006

UNAUDITED


	# Resorts						# of Units ⁽¹⁾
			In		In Active				Pre-sales/		Future		Total at
Brand	Total⁽²⁾		Operations		Sales		Completed ⁽³⁾		Development ⁽⁴⁾		Capacity ^(5),(6)		Buildout
Sheraton		7		6		6		2,596		135		1,683		4,414
Westin		11		4		6		751		497		813		2,061
St. Regis		2		1		2		47		—		—		47
Unbranded		3		3		—		124		—		1		125

Total SVO, Inc.		23		14		14		3,518		632		2,497		6,647


Unconsolidated Joint Ventures (UJV’s)		2		1		1		198		—		36		234

Total including UJV’s		25		15		15		3,716		632		2,533		6,881


Total Intervals Including UJV’s ⁽⁷⁾								193,232		32,864		131,716		357,812


(1)		Lockoff units are considered as one unit for this analysis.

(2)		Includes resorts in operation, active sales, and announced new resorts, Sheraton Kauai and St. Regis Punta Mita (UJV)

(3)		Completed units include those units that have a certificate of occupancy.

(4)		Units in Pre-sales/Development are in various stages of development (including the permitting stage), most of which are currently being offered for sale to customers.

(5)		Based on owned land and average density in existing marketplaces

(6)		Future units indicated above include planned timeshare units on land owned by the Company or applicable UJV that have received all major governmental land use approvals for the development of timeshare. There can be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated.

(7)		Assumes 52 intervals per unit.

-34-

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
EX-99.1


	STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
	(Registrant)

	By:	/s/ Alan Schnaid

		Name: Alan Schnaid
		Title: Senior Vice President, Corporate Controller and
		Principal Accounting Officer

Date: February 1, 2007

Table of Contents

Table of Contents

Table of Contents

Table of Contents


Maryland (State or Other Jurisdiction of Incorporation)		1-7959 (Commission File Number)		52-1193298 (IRS Employer Identification No.)


1111 Westchester Avenue, White Plains, New York (Address of Principal Executive Offices)		10604 (Zip Code)


Exhibit No.		Exhibit

99.1		Press Release, dated February 1, 2007.


	Q4		YTD
Capital Expenditures:
Owned, Leased and Consolidated Joint Venture Hotels		55		241
Corporate/IT		16		48

Subtotal		71		289

Vacation Ownership Capital Expenditures:
Capital expenditures (includes land acquisitions)		26		76
Net capital expenditures for inventory ⁽¹⁾		33		118

Subtotal		59		194

Development Capital		59		168


Total Capital Expenditures		189		651


(1)		Represents gross inventory capital expenditures of $107 and $335, less cost of sales of $74 and $217 for the three and twelve months ended December 31, 2006.


		% of 2006
US Assets		Total Owned Earnings ^{(1) (2)}

New York, NY		13.0%
Phoenix, AZ		6.8%
Hawaii		6.2%
Atlanta, GA		5.6%
Chicago, IL		4.5%
San Francisco/San Mateo, CA		3.1%
Boston, MA		3.0%
San Diego, CA		2.8%
Miami-Hialeah, FL		2.5%
Los Angeles-Long Beach, CA		2.0%

Total Top 10 US Markets		49.5%


		% of 2006
International Assets		Total Owned Earnings ^{(1) (2)}

Italy		9.2%
Mexico		7.2%
Canada		5.9%
Argentina		3.2%
Australia		2.9%
UK		2.7%
Spain		1.5%
France		1.2%
Austria		1.1%
Caribbean		0.8%

Total Top 10 International Markets		35.7%


(1)		Excludes hotels sold to Host

(2)		Represents earnings before depreciation


	Total Management			Total Franchise
Geographical Area	Fees			Fees
United States		43.7	%		65.2	%
Europe		17.9	%		14.3	%
Asia Pacific		15.7	%		8.0	%
Middle East and Africa		15.4	%		0.9	%
Americas (Latin America & Canada)		7.3	%		11.6	%