St. Regis Announces Ultra-Luxe Resort in Costa Rica

St. Regis Continues Dynamic Growth Path With Third New Property Announced In Latin America

White Plains, NY – May 22, 2006 – Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) today announced an agreement has been reached with Genesis, a Costa Rican-based development firm, to build a new St. Regis Resort and Residences in the Central Pacific region of Costa Rica. Scheduled to open in 2008, the resort will be developed with the participation of Lionstone Development, a Miami-based luxury hotelier and developer and will be managed by Starwood’s ultra-luxe St. Regis brand. When it opens, St. Regis Resort, Costa Rica will introduce an unrivaled dimension of luxury and bespoke service to Costa Rica.

“As we grow the St. Regis brand we continue to seek only the world’s most exclusive addresses, and there are few resort destinations in the world that embody the raw natural beauty of Costa Rica,” said Kerry Hatch, President of St. Regis.

St. Regis Resort, Costa Rica designed by Zurcher Architects, a leading Costa Rican architectural firm, will feature a total of 133 luxurious accommodations. Each guestroom will include oversized outdoor terraces complete with outdoor showers, netted day beds and relaxation coves. For the ultimate in privacy and pampering, the resort will boast four ultra-luxe spa suites outfitted with plush private treatment areas, plunge pools and the finest amenities. The Presidential Suite, the crowing jewel of the resort, will be perched on a dramatic cliff, complete with three spacious bedrooms, private pool and breathtaking views of the tropical forest and the Pacific Ocean. Resort amenities will include three pool areas set within the tropical landscape, a specialty restaurant, themed three-meal restaurant, lobby bar, pool bar, beach club and an 11,000 square foot Remède Spa and Fitness Center featuring outdoor meditation areas and  nine deluxe treatment rooms. The resort will also offer 3,750 square feet of meeting and function space.

St. Regis Residences, Costa Rica will include a total of 49 one, two and three-bedroom condominium-hotel residences, 42 deluxe whole ownership private villas and nine magnificent estate homes all delivered with private plunge pools. Indigenous materials will be utilized to create private residential dwellings that are destined to be the most luxurious in the region. Residence owners will enjoy full access to the resort’s services and amenities including its St. Regis Butler Service, the exclusive Remède Spa and fine dining restaurants. The resort’s magnificent guestrooms, suites and residences will be designed by Cheryl Rowley Associates, the acclaimed Beverly Hills-based design firm.

“We are thrilled to announce our third new St. Regis property in Latin America, following the recent announcements of the St. Regis in Mexico City and the St. Regis in Punta Mita. We look forward to welcoming the world’s most discriminating travelers and residence owners,” stated Osvaldo Librizzi, President of Starwood Hotels & Resorts in Latin America. “St. Regis Hotel, Costa Rica will introduce a new dimension of elegance, style, luxury, hospitality and gracious living to the country”.

St. Regis Resort, Costa Rica is ideally situated in Playa Coyol, a lush tropical wonderland home to abundant flora and fauna, dramatic views to the Pacific Ocean and stunning private beaches. This project will be the only internationally branded hotel surrounded by a National Wildlife Reserve, the Ara Macao Wildlife Reserve.

Located 65 miles from the San Jose’s International Airport, the magnificent resort is readily accessible from the country’s main airport and situated on a 250-acre site on a secluded bay within close proximity to the Los Sueños area which features an 18-hole golf course and a marina.

“We are excited to work with the prestigious St. Regis brand, as well as one of the top developers in Costa Rica, to create one of the most exclusive real estate and resort offerings in Latin America,” said Diego Lowenstein, CEO of Lionstone Development.

Alberto Kader, CEO of Genesis added, “Managed by one of the most internationally renowned names in the hospitality industry and located within a breathtaking Wildlife Preserve, St. Regis Resort and Residences, Costa Rica will offer the ultimate in privacy and pampering in a tropical paradise."

Beloved for its signature St. Regis Butler Service, exquisite design and enviable locations, St. Regis is among the world’s most revered luxury hotel brands. The brand is growing rapidly, with a development pipeline of over 20 properties opening within the next five years. St. Regis has also made significant strides into the luxury residential real estate market with exclusive St. Regis Residences in the world’s most desirable locales including Anguilla, New York, Bali, Mexico City, Singapore and beyond, all of which are under development and commanding premium prices per square foot.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with approximately 850 properties in more than 95 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®, Sheraton®, Westin®, Four Points® by Sheraton, W®, Le Méridien® and the recently announced AloftSM. 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.

St. Regis Hotels & Resorts includes the most celebrated properties in the world. Founded by John Jacob Astor with landmark St. Regis Hotel, New York over a century ago, the company will unveil highly anticipated St. Regis properties in Bora Bora, French Polynesia (2006) Fort Lauderdale (2006), Mexico City (2007), Punta Mita, Mexico (2007), Singapore (2007), Anguilla (2008), Atlanta (2008), Deer Valley, UT (2008), Puerto Rico (2008) and Bal Harbour, FL (2009) that will further enhance the brand's legacy. Personalized service and amenities, enviable locations and luxuriously localized design are recognized worldwide as hallmarks of the St. Regis experience. For more information on St. Regis Hotels & Resorts, please visit www.stregis.com.

GENESIS is one of the leading real estate development firms in Costa Rica with a 15-year track record of owning, developing and selling residential and office properties. Forum Office Park and Forum2 represent more than 1.3 million square feet of office space. For more information, please visit www.genesiscostarica.com.

Lionstone Development has a 30-year track record of owning, developing, leasing and managing hospitality, gaming and residential properties. Lionstone's current portfolio includes several luxury resort properties from world-renowned brands in Miami and the Caribbean and the company is developing more than 2.5 million square feet of high-end residential and mixed-use space throughout South Florida. For more information, visit www.lionstone.net.