Two new Sheraton hotels will open in Japan under a franchise agreement with Kintetsu Hotel Systems, Inc., the hotel operating division of Kintetsu Corporation. The Miyako Tokyo Hotel will be re-flagged as the Sheraton Miyako Hotel Tokyo. The Sheraton Miyako Hotel Osaka, previously known as the Miyako Osaka Hotel, will offer 575 rooms to guests visiting Osaka. Both hotels will be re-flagged in April 2007.

The addition of these two new hotels highlights Sheraton hotel`s commitment to growing its brand presence in Asia, further accelerating Starwood`s ongoing global expansion. Starwood currently operates 14 hotels and resorts in Japan under the Le Meridien, Sheraton and Westin brand portfolios.

We are excited that Kintetsu Hotel Systems Inc. has selected the Sheraton flag for these outstanding properties in two of the most important cities in Japan, in an agreement that dramatically enhances Sheraton`s already impressive portfolio in Asia Pacific, said Miguel Ko, President of Starwood Hotels & Resorts, Asia Pacific.

The two new Sheraton properties are poised to serve the rapidly increasing number of leisure and business travelers to Japan, as the country intensifies its efforts to boost tourism. According to Japan`s Ministry of Land, Infrastructure and Transport, the country aims to double the number of foreign tourists to Japan to 10 million a year by 2010, by directly supporting the tourism industry and attracting business travelers for meetings, conventions and exhibitions.

We are confident that the Sheraton brand will strengthen our marketing and sales efforts to drive international business to the hotels and to these destinations, as well as enhance the awareness of these two great hotels in the competitive markets of Tokyo and Osaka. We are also delighted to further expand our partnership with Starwood in Japan, said Mr. Yasuyuki Suzuki, President of Kintetsu Hotel Systems, Inc. Starwood currently operates The Westin Miyako Kyoto, which is also owned by Kintetsu.

We are delighted to extend a warm Sheraton welcome to both business and leisure travelers to Tokyo and Osaka, offering guests the full-range of Sheraton`s distinctive amenities and services, said Hoyt Harper, Senior Vice President, Sheraton Hotels.