CONTACT:		Jason Koval (914) 640-4429

FOR IMMEDIATE RELEASE
February 3, 2011

STARWOOD REPORTS FOURTH QUARTER 2010 RESULTS

WHITE PLAINS, NY, February 3, 2011 — Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported fourth quarter 2010 financial results.

Fourth Quarter 2010 Highlights

	•		Excluding special items, EPS from continuing operations was $0.52. Including special items, EPS from continuing operations was $1.08.
	•		Adjusted EBITDA was $269 million.
	•		Excluding special items, income from continuing operations was $99 million. Including special items, income from continuing operations was $206 million.
	•		Worldwide System-wide REVPAR for Same-Store Hotels increased 10.1% (10.3% in constant dollars) compared to 2009. System-wide REVPAR for Same-Store Hotels in North America increased 10.2% (9.7% in constant dollars).
	•		Management fees, franchise fees and other income increased 13.0% compared to 2009.
	•		Worldwide Same-Store company-operated gross operating profit margins increased approximately 100 basis points compared to 2009.
	•		Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 10.1% (10.9% in constant dollars) compared to 2009. REVPAR for Starwood branded Same-Store Owned Hotels in North America increased 9.1% (8.1% in constant dollars).
	•		Margins at Starwood branded Same-Store Owned Hotels Worldwide increased 30 basis points compared to 2009. Adjusted for a non-recurring item recorded in 2009, margins increased approximately 170 basis points.
	•		Operating income from vacation ownership and residential increased $13 million compared to 2009.
	•		During the quarter, the Company signed 37 hotel management and franchise contracts representing approximately 8,000 rooms and opened 23 hotels and resorts with approximately 5,700 rooms.
	•		During the quarter, the Company received a refund from the IRS of approximately $245 million primarily for previously paid taxes and related interest relating to the settlement of a dispute regarding the 1998 disposition of World Directories, Inc.

Fourth Quarter 2010 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the fourth quarter of 2010 of $1.08 per share compared to a loss of $1.03 in the fourth quarter of 2009. Excluding special items, EPS from continuing operations was $0.52 for the fourth quarter of 2010 compared to $0.51 in the fourth quarter of 2009. Excluding special items, the effective income tax rate in the fourth quarter of 2010 was 24.9%, compared to 4.1% in the fourth quarter of 2009.

Special items in the fourth quarter of 2010 included an after-tax benefit of $107 million or $0.56 per share and were primarily related to the settlement with the IRS regarding the 1998 disposition of World Directories, Inc. and the favorable settlement of a lawsuit. Special items in the fourth quarter of 2009 included a $281 million after-tax charge or $1.54 per share primarily related to the impairment of vacation ownership projects, goodwill and owned hotels.

Income from continuing operations was $206 million in the fourth quarter of 2010 compared to a loss of $186 million in the fourth quarter of 2009. Excluding special items, income from continuing operations was $99 million in the fourth quarter of 2010 compared to $95 million in the fourth quarter of 2009.

Net income was $339 million and $1.78 per share in the fourth quarter of 2010 compared to a net loss of $107 million and $0.59 per share in the fourth quarter of 2009.

Frits van Paasschen, CEO said, “We ended 2010 with a strong fourth quarter, and momentum has continued into 2011. Our robust REVPAR growth is fueled by strong global brands along with sales and marketing initiatives. By containing costs we are translating these higher revenues into higher profits.”

“Starwood is well-positioned to capitalize on the rapid growth in emerging markets. In developed markets, tight supply should support rate increases. Our balance sheet is in great shape, with year-end net debt of just over $2 billion. We are making solid progress towards our investment grade objective.”

Fourth Quarter 2010 Operating Results

Management and Franchise Revenues

Worldwide System-wide REVPAR for Same-Store Hotels increased 10.1% (10.3% in constant dollars) compared to the fourth quarter of 2009. International System-wide REVPAR for Same-Store Hotels increased 10.1% (11.0% in constant dollars).

Worldwide System-wide REVPAR for Same-Store changes by region:

		REVPAR
Region		Reported				Constant dollars
North America			10.2	%			9.7	%
Europe			4.6	%			12.0	%
Asia Pacific			20.3	%			15.1	%
Africa and the Middle East			(2.2	)%			(0.1	)%
Latin America			17.2	%			17.2	%

Increases in REVPAR for Worldwide System-wide Same-Store hotels by brand:

		REVPAR
Brand		Reported				Constant dollars
St. Regis/Luxury Collection			8.0	%			9.4	%
W Hotels			19.9	%			19.7	%
Westin			9.1	%			8.8	%
Sheraton			10.8	%			10.6	%
Le Méridien			4.3	%			6.7	%
Four Points by Sheraton			11.8	%			10.9	%

Worldwide Same-Store company-operated gross operating profit margins increased approximately 100 basis points in the fourth quarter driven by REVPAR increases and cost controls. International gross operating profit margins for Same-Store company-operated properties increased approximately 20 basis points, and North American Same-Store company-operated gross operating profit margins increased approximately 200 basis points.

Management fees, franchise fees and other income were $209 million, up $24 million, or 13.0%, from the fourth quarter of 2009. Management fees increased 23.1% to $128 million and franchise fees increased 20.0% to $42 million.

During the fourth quarter of 2010, the Company signed 37 hotel management and franchise contracts, representing approximately 8,000 rooms, of which 29 are new builds and eight are conversions from other brands. At December 31, 2010, the Company had approximately 350 hotels in the active pipeline representing approximately 85,000 rooms.

During the fourth quarter of 2010, 23 new hotels and resorts (representing approximately 5,700 rooms) entered the system, including the St. Regis Osaka (Japan, 160 rooms), Sheraton Malpensa Airport (Italy, 433 rooms), Sheraton Tianjin Binhai (China, 325 rooms), Westin Gurgaon (India, 311 rooms), Sheraton Tribeca New York Hotel (New York, 369 rooms), Element New York Times Square (New York, 411 rooms), and Aloft Harlem (New York, 124 rooms). Seven properties (representing approximately 1,400 rooms) were removed from the system during the quarter.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 10.1% (10.9% in constant dollars) in the fourth quarter of 2010 when compared to 2009. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 9.1% (8.1% in constant dollars). Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 11.6% (15.0% in constant dollars).

Revenues at Starwood branded Same-Store Owned Hotels in North America increased 7.7% (6.7% in constant dollars) while costs and expenses increased 4.8% when compared to 2009. Margins at these hotels increased 220 basis points.

Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 5.9% (6.6% in constant dollars) while costs and expenses increased 5.5% when compared to 2009. Margins at these hotels increased 30 basis points. Adjusted for a non-recurring item recorded in 2009, margins increased approximately 170 basis points.

Revenues at owned, leased and consolidated joint venture hotels were $459 million, compared to $430 million in 2009.

Vacation Ownership

Total vacation ownership revenues of $135 million were flat compared to 2009. Originated contract sales of vacation ownership intervals decreased 1.2% primarily due to lower average prices. The number of contracts signed increased 7.6% when compared to 2009 and the average price per vacation ownership unit sold decreased 7.0% to approximately $14,000, driven by price reductions and inventory mix.

Selling, General, Administrative and Other

Selling, general, administrative and other expenses increased 8.9% to $86 million compared to 2009, due to higher incentive compensation, partially offset by the reimbursement of previously expensed legal fees following the favorable settlement of a lawsuit.

Capital

Gross capital spending during the quarter included approximately $79 million of maintenance capital and $31 million of development capital. Investment spending on net vacation ownership interest (“VOI”) and residential inventory was $24 million, primarily related to the St. Regis Bal Harbour project.

Dividends

In November 2010, the Company’s Board of Directors declared its annual dividend of $0.30 per share. The dividend was paid by the Company on December 30, 2010 to holders of record on December 16, 2010.

Balance Sheet

At December 31, 2010, the Company had gross debt of $2.857 billion, excluding $494 million of debt associated with securitized vacation ownership notes receivable that are required to be consolidated under ASU 2009-17. Additionally, the Company had cash and cash equivalents of $797 million (including $44 million of restricted cash), and net debt of $2.060 billion, compared to net debt of $2.455 billion as of September 30, 2010. Net debt at December 31, 2010 including debt and restricted cash ($19 million) associated with securitized vacation ownership notes receivables was $2.535 billion.

At December 31, 2010, debt was approximately 81% fixed rate and 19% floating rate and its weighted average maturity was 4.2 years with a weighted average interest rate of 6.86% excluding the securitized debt. The Company had cash (including current restricted cash) and availability under the domestic and international revolving credit facility of approximately $2.148 billion.

IRS Tax Settlement

In December 2010, the Company received a refund of approximately $245 million for previously paid taxes and related interest from the IRS relating to the 1998 disposition of World Directories, Inc.

Legal Settlement

In December 2010, the Company received $75 million in connection with a favorable settlement of a lawsuit. The cash payment to the Company included the reimbursement of legal fees in connection with the matter.

Outlook

For the Full Year 2011:

Macro-economic and geo-political environments remain uncertain. Booking windows, while improving, are short. We believe that several scenarios are possible. With low supply growth in developed markets and high demand growth in emerging markets, rate improvement will be the key driver of 2011 results. Based on trends to date, our outlook assumes a normal lodging recovery in 2011:

•

Adjusted EBITDA is expected to be approximately $975 million to $1 billion, assuming:

	•		REVPAR increases at Same-Store Company Operated Hotels Worldwide of 7% to 9% in constant dollars (approximately 100 basis points higher in dollars at current exchange rates).
	•		REVPAR increases at Branded Same-Store Owned Hotels Worldwide of 7% to 9% in constant dollars (approximately 100 basis points higher in dollars at current exchange rates).
	•		Margin increases at Branded Same-Store Owned Hotels Worldwide of 150 to 200 basis points.
	•		Management fees, franchise fees and other income increase of approximately 10% to 12%.
	•		Operating income from our vacation ownership and residential business of approximately $125 million to $135 million.
	•		Selling, General and Administrative expenses increase 2% to 3%.

	•		Depreciation and amortization is expected to be approximately $325 million.
	•		Interest Expense is expected to be approximately $245 million.
	•		Full year effective tax rate is expected to be approximately 25%.
	•		Assuming all of the above, EPS is expected to be approximately $1.55 to $1.65.

•

Full year capital expenditure (excluding vacation ownership and residential inventory) is expected to be approximately $300 million for maintenance, renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments are expected to total approximately $150 million. Vacation ownership (excluding Bal Harbour) is expected to generate approximately $165 million in positive cash flow.

•

The Company currently expects closings on Bal Harbour residential units to commence in late Q4 2011. The Company’s current outlook does not include any revenue recognition or cash flows associated with these potential closings. The Company does, however, expect there to be revenue recognition and cash flows from closings in Q4 2011 and the Company will provide updates as the year progresses. Bal Harbour capital expenditure for 2011 is expected to be approximately $150 million.

For the three months ended March 31, 2011:

•

Adjusted EBITDA is expected to be approximately $195 million to $205 million, assuming:

	•		REVPAR increases at Same-Store Company Operated Hotels Worldwide of 8% to 10% in constant dollars (approximately 100 basis points higher in dollars at current exchange rates).
	•		REVPAR increases at Branded Same-Store Owned Hotels Worldwide of 8% to 10% in constant dollars (approximately 100 basis points higher in dollars at current exchange rates).
	•		Management fees, franchise fees and other income increase of approximately 12% to 14%.
	•		Operating income from our vacation ownership and residential business of approximately $30 million to $35 million.

	•		Depreciation and amortization is expected to be approximately $78 million.
	•		Interest Expense is expected to be approximately $60 million.
	•		Income from continuing operations is expected to be approximately $43 million to $51 million, reflecting an effective tax rate of approximately 25%.
	•		Assuming all of the above, EPS is expected to be approximately $0.22 to $0.26.

Special Items

The Company’s special items netted to a benefit of $69 million ($107 million after-tax) in the fourth quarter of 2010 compared to a $431 million charge ($281 million after-tax) in the same period of 2009.

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

Three Months Ended										Year Ended
December 31,										December 31,
2010				2009						2010				2009
$	99			$	95			Income from continuing operations before special items		$	237			$	188
$	0.52			$	0.51			EPS before special items (a)		$	1.25			$	1.02
								Special Items
	73				(355	)		Restructuring, goodwill impairment and other special credits (charges), net (b)			75				(379	)
	(4	)			(42	)		Loss on asset dispositions and impairments, net (c)			(39	)			(91	)
	—				(17	)		Debt extinguishment (d)			—				(17	)
	—				(17	)		Cost of sales adjustments (e)			—				(17	)
	69				(431	)		Total special items — pre-tax			36				(504	)
	(4	)			113			Income tax (expense) benefit for special items (f)			(5	)			158
	42				—			World Directories, Inc. refund (g)			42				—
	—				37			Foreign tax credits (h)			—				37
	—				—			Italian tax incentive (i)			—				120
	107				(281	)		Total special items — after-tax			73				(189	)
$	206			$	(186	)		Income (loss) from continuing operations		$	310			$	(1	)
$	1.08			$	(1.03	)		EPS (loss per share) including special items		$	1.63			$	0.00

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. (EDT) today at (706) 758-8744. The conference call will be available through a simultaneous web cast 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 1:30 p.m. (EDT) today through February 10, 2011 at 12:00 midnight (EDT) on both the Company’s website and via telephone replay at (706) 645-9291 (pass code #23162931).

Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations attributable to Starwood’s common shareholders. All references to continuing operations, discontinued operations and net income reflect amounts attributable to Starwood’s common shareholders (i.e. excluding amounts attributable to noncontrolling interests). 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 restructuring, goodwill impairment 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. 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 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 condo hotels, hotels sold to date and hotels 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 natural disasters). References to Company Operated Hotel metrics (e.g. REVPAR) reflect metrics for the Company’s owned and managed hotels. References to System-Wide metrics (e.g. REVPAR) reflect metrics for the Company’s owned, managed and franchised hotels. REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

All references to revenues in constant dollars represents revenues, excluding the impact of the movement of foreign exchange rates. The Company calculates revenues in constant dollars by calculating revenues for the current year using the prior year’s exchange rates. The Company uses this revenue measure to better understand the underlying results and trends of the business, excluding the impact of movements in foreign exchange rates.

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.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with 1,041 properties in nearly 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.

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 also 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. There can also be no assurance that agreements will be entered into for the hotels in the Company’s pipeline and, if entered into, the timing of any agreement and the opening of the related hotel. Although we believe the expectations reflected in 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.

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,
								%														%
2010				2009				Variance						2010				2009				Variance
												Revenues
$	459			$	430				6.7			Owned, leased and consolidated joint venture hotels		$	1,704			$	1,584				7.6
	136				136				—			Vacation ownership and residential sales and services			538				523				2.9
	209				185				13.0			Management fees, franchise fees and other income			712				658				8.2
	536				495				8.3			Other revenues from managed and franchised properties (a)			2,117				1,931				9.6
	1,340				1,246				7.5						5,071				4,696				8.0
												Costs and Expenses
	367				343				(7.0	)		Owned, leased and consolidated joint venture hotels			1,395				1,315				(6.1	)
	103				116				11.2			Vacation ownership and residential			405				422				4.0
	86				79				(8.9	)		Selling, general, administrative and other			344				314				(9.6	)
	(73	)			355				n/m			Restructuring, goodwill impairment and other special (credits) charges, net			(75	)			379				n/m
	56				68				17.6			Depreciation			252				274				8.0
	9				10				10.0			Amortization			33				35				5.7
	536				495				(8.3	)		Other expenses from managed and franchised properties (a)			2,117				1,931				(9.6	)
	1,084				1,466				26.1						4,471				4,670				4.3
	256				(220	)			n/m			Operating income (loss)			600				26				n/m
	5				1				n/m			Equity earnings and gains and (losses) from unconsolidated ventures, net			10				(4	)			n/m
	(56	)			(71	)			21.1			Interest expense, net of interest income of $1, $1, $2 and $3			(236	)			(227	)			(4.0	)
	(4	)			(42	)			90.5			Loss on asset dispositions and impairments, net			(39	)			(91	)			57.1
	201				(332	)			n/m			Income (loss) from continuing operations before taxes			335				(296	)			n/m
	5				146				(96.6	)		Income tax (expense) benefit			(27	)			293				n/m
	206				(186	)			n/m			Income (loss) from continuing operations			308				(3	)			n/m
												Discontinued Operations:
	1				(1	)			n/m			Net (loss) income from operations, net of tax			(1	)			(2	)			50.0
	132				80				65.0			Net gain (loss) on dispositions, net of tax			168				76				n/m
	339				(107	)			n/m			Net income (loss)			475				71				n/m
	—				—				—			Net loss attributable to noncontrolling interests			2				2				—
$	339			$	(107	)			n/m			Net income (loss) attributable to Starwood		$	477			$	73				n/m
												Earnings (Loss) Per Share — Basic
$	1.13			$	(1.03	)			n/m			Continuing operations		$	1.70			$	0.00				n/m
	0.72				0.44				63.6			Discontinued operations			0.91				0.41				n/m
$	1.85			$	(0.59	)			n/m			Net income (loss)		$	2.61			$	0.41				n/m
												Earnings (Loss) Per Share — Diluted
$	1.08			$	(1.03	)			n/m			Continuing operations		$	1.63			$	0.00				n/m
	0.70				0.44				59.1			Discontinued operations			0.88				0.41				n/m
$	1.78			$	(0.59	)			n/m			Net income (loss)		$	2.51			$	0.41				n/m
												Amounts attributable to Starwood’s Common Shareholders
$	206			$	(186	)			n/m			Continuing operations		$	310			$	(1	)			n/m
	133				79				68.4			Discontinued operations			167				74				n/m
$	339			$	(107	)			n/m			Net income (loss)		$	477			$	73				n/m
	185				180							Weighted average number of shares			183				180
	192				180							Weighted average number of shares assuming dilution			190				180

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

CONSOLIDATED BALANCE SHEETS
(In millions, except share data)

		December 31,				December 31,
		2010				2009
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	753			$	87
Restricted cash			53				47
Accounts receivable, net of allowance for doubtful accounts of $45 and $54			513				445
Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $10			59				—
Inventories			802				783
Prepaid expenses and other			126				127
Total current assets			2,306				1,489
Investments			321				368
Plant, property and equipment, net			3,323				3,350
Assets held for sale			—				71
Goodwill and intangible assets, net			2,067				2,063
Deferred tax assets			979				982
Other assets (a)			381				438
Securitized vacation ownership notes receivable			408				—
		$	9,785			$	8,761
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt (b)		$	9			$	5
Current maturities of long-term securitized vacation ownership debt			127				—
Accounts payable			147				139
Accrued expenses			1,123				1,212
Accrued salaries, wages and benefits			410				303
Accrued taxes and other			373				368
Total current liabilities			2,189				2,027
Long-term debt (b)			2,848				2,955
Long-term securitized vacation ownership debt			367				—
Deferred income taxes			28				31
Other liabilities			1,867				1,903
			7,299				6,916
Commitments and contingencies
Stockholders’ equity:
Corporation common stock; $0.01 par value; authorized 1,000,000,000 shares; outstanding 192,970,437 and 186,785,068 shares at December 31, 2010 and December 31, 2009, respectively			2				2
Additional paid-in capital			805				552
Accumulated other comprehensive loss			(283	)			(283	)
Retained earnings			1,947				1,553
Total Starwood stockholders’ equity			2,471				1,824
Noncontrolling interest			15				21
Total equity			2,486				1,845
		$	9,785			$	8,761

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

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

Three Months Ended														Year Ended
December 31,														December 31,
								%														%
2010				2009				Variance						2010				2009				Variance
												Reconciliation of Net Income to EBITDA and Adjusted EBITDA
$	339			$	(107	)			n/m			Net income		$	477			$	73				n/m
	61				75				(18.7	)		Interest expense (a)			255				249				2.4
	(138	)			(169	)			18.3			Income tax (benefit) expense (b)			(139	)			(330	)			57.9
	66				80				(17.5	)		Depreciation (c)			288				317				(9.1	)
	10				12				(16.7	)		Amortization (d)			36				38				(5.3	)
	338				(109	)			n/m			EBITDA			917				347				n/m
	4				42				(90.5	)		Loss on asset dispositions and impairments, net			39				91				(57.1	)
	—				(58	)			100.0			Discontinued operations pre-tax net gain on dispositions			(2	)			(41	)			95.1
	(73	)			355				n/m			Restructuring, goodwill impairment and other special (credits) charges, net			(75	)			379				n/m
	—				17				(100.0	)		Cost of sales price discount adjustments			—				17				(100.0	)
$	269			$	247				8.9			Adjusted EBITDA		$	879			$	793				10.8

Non-GAAP to GAAP Reconciliations — Company Revenues Same Store
(In millions)

		Three Months Ended
		December 31, 2010
		$ Change				% Variance
BRANDED HOTELS
Worldwide
Revenue Increase (GAAP)			21				5.9	%
(Decrease) / Increase due to foreign exchange rates			2				0.7	%
Revenue increase in constant dollars			23				6.6	%
North America
Revenue Increase (GAAP)			15				7.7	%
(Decrease) / Increase due to foreign exchange rates			(2	)			(1.0	)%
Revenue increase in constant dollars			13				6.7	%

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations — Future Performance
(In millions, except per share data)

Low Case

Three Months Ended						Year Ended
March 31, 2011						December 31, 2011
$	43			Net income		$	304
	60			Interest expense			245
	14			Income tax expense			101
	78			Depreciation and amortization			325
	195			EBITDA			975
	—			Gain/loss on asset dispositions and impairments, net			—
	—			Discontinued operations pre-tax net gain/loss on dispositions			—
	—			Restructuring, goodwill impairment and other special credits, net			—
$	195			Adjusted EBITDA		$	975
Three Months Ended						Year Ended
March 31, 2011						December 31, 2011
$	43			Income from continuing operations before special items		$	304
$	0.22			EPS before special items be		$	1.55
				Special Items
	—			Restructuring, goodwill impairment and other special credits, net			—
	—			Gain/loss on asset dispositions and impairments, net			—
	—			Total special items — pre-tax			—
	—			Income tax expense on special items			—
	—			Total special items — after-tax			—
$	43			Income from continuing operations		$	304
$	0.22			EPS including special items		$	1.55

High Case

Three Months Ended						Year Ended
March 31, 2011						December 31, 2011
$	51			Net income		$	323
	60			Interest expense			245
	16			Income tax expense			107
	78			Depreciation and amortization			325
	205			EBITDA			1,000
	—			Gain/loss on asset dispositions and impairments, net			—
	—			Discontinued operations pre-tax net gain/loss on dispositions			—
	—			Restructuring, goodwill impairment and other special credits, net			—
$	205			Adjusted EBITDA		$	1,000
Three Months Ended						Year Ended
March 31, 2011						December 31, 2011
$	51			Income from continuing operations before special items		$	323
$	0.26			EPS before special items be		$	1.65
				Special Items
	—			Restructuring, goodwill impairment and other special credits, net			—
	—			Gain/loss on asset dispositions and impairments, net			—
	—			Total special items — pre-tax			—
	—			Income tax expense on special items			—
	—			Total special items — after-tax			—
$	51			Income from continuing operations		$	323
$	0.26			EPS including special items		$	1.65

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										%
2010				2009				Variance				Worldwide		2010				2009				Variance
												Revenue
$	394			$	373				5.6			Same-Store Owned Hotels (a)		$	1,421			$	1,314				8.1
	—				17				(100.0	)		Hotels Sold or Closed in 2010 and 2009			18				98				(81.6	)
	59				45				31.1			Hotels Without Comparable Results			250				177				41.2
	6				(5	)			n/m			Other ancillary hotel operations			15				(5	)			n/m
$	459			$	430				6.7			Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	1,704			$	1,584				7.6
												Costs and Expenses
$	307			$	292				(5.1	)		Same-Store Owned Hotels (a)		$	1,147			$	1,077				(6.5	)
	—				14				100.0			Hotels Sold or Closed in 2010 and 2009			15				84				82.1
	53				42				(26.2	)		Hotels Without Comparable Results			220				159				(38.4	)
	7				(5	)			n/m			Other ancillary hotel operations			13				(5	)			n/m
$	367			$	343				(7.0	)		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	1,395			$	1,315				(6.1	)
Three Months Ended														Year Ended
December 31,														December 31,
								%				Same-Store Owned Hotels										%
2010				2009				Variance				North America		2010				2009				Variance
												Revenue
$	242			$	226				7.1			Same-Store Owned Hotels (a)		$	875			$	806				8.6
	—				6				(100.0	)		Hotels Sold or Closed in 2010 and 2009			18				59				(69.5	)
	35				34				2.9			Hotels Without Comparable Results			172				159				8.2
	6				—				n/m			Other ancillary hotel operations			15				—				n/m
$	283			$	266				6.4			Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	1,080			$	1,024				5.5
												Costs and Expenses
$	194			$	186				(4.3	)		Same-Store Owned Hotels (a)		$	733			$	692				(5.9	)
	—				3				100.0			Hotels Sold or Closed in 2010 and 2009			15				45				66.7
	30				28				(7.1	)		Hotels Without Comparable Results			139				133				(4.5	)
	7				—				n/m			Other ancillary hotel operations			13				—				n/m
$	231			$	217				(6.5	)		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	900			$	870				(3.4	)
Three Months Ended														Year Ended
December 31,														December 31,
								%				Same-Store Owned Hotels										%
2010				2009				Variance				International		2010				2009				Variance
												Revenue
$	152			$	147				3.4			Same-Store Owned Hotels (a)		$	546			$	508				7.5
	—				11				(100.0	)		Hotels Sold or Closed in 2010 and 2009			—				39				(100.0	)
	24				11				n/m			Hotels Without Comparable Results			78				18				n/m
	—				(5	)			100.0			Other ancillary hotel operations			—				(5	)			100.0
$	176			$	164				7.3			Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	624			$	560				11.4
												Costs and Expenses
$	113			$	106				(6.6	)		Same-Store Owned Hotels (a)		$	414			$	385				(7.5	)
	—				11				100.0			Hotels Sold or Closed in 2010 and 2009			—				39				100.0
	23				14				(64.3	)		Hotels Without Comparable Results			81				26				n/m
	—				(5	)			(100.0	)		Other ancillary hotel operations			—				(5	)			(100.0	)
$	136			$	126				(7.9	)		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	495			$	445				(11.2	)

Starwood Hotels & Resorts Worldwide, Inc.
Systemwide⁽¹⁾ Statistics — Same Store
For the Three Months Ended December 31,
UNAUDITED

		Systemwide - Worldwide												Systemwide - North America												Systemwide - International
		2010				2009				Variance				2010				2009				Variance				2010				2009				Variance
TOTAL HOTELS
REVPAR ($)			109.36				99.30				10.1	%			98.83				89.69				10.2	%			124.45				113.06				10.1	%
ADR ($)			166.26				162.40				2.4	%			153.63				150.66				2.0	%			183.41				178.18				2.9	%
Occupancy (%)			65.8	%			61.1	%			4.7				64.3	%			59.5	%			4.8				67.9	%			63.5	%			4.4
SHERATON
REVPAR ($)			96.34				86.96				10.8	%			83.70				76.07				10.0	%			112.96				101.25				11.6	%
ADR ($)			147.98				144.50				2.4	%			133.14				131.44				1.3	%			166.00				160.17				3.6	%
Occupancy (%)			65.1	%			60.2	%			4.9				62.9	%			57.9	%			5.0				68.0	%			63.2	%			4.8
WESTIN
REVPAR ($)			118.74				108.88				9.1	%			109.14				101.04				8.0	%			147.06				131.99				11.4	%
ADR ($)			177.19				172.25				2.9	%			164.83				162.47				1.5	%			212.00				199.32				6.4	%
Occupancy (%)			67.0	%			63.2	%			3.8				66.2	%			62.2	%			4.0				69.4	%			66.2	%			3.2
ST. REGIS/LUXURY COLLECTION
REVPAR ($)			182.62				169.13				8.0	%			195.94				177.07				10.7	%			174.07				164.02				6.1	%
ADR ($)			295.42				292.52				1.0	%			308.02				300.23				2.6	%			286.95				287.39				-0.2	%
Occupancy (%)			61.8	%			57.8	%			4.0				63.6	%			59.0	%			4.6				60.7	%			57.1	%			3.6
LE MERIDIEN
REVPAR ($)			135.27				129.70				4.3	%			200.63				179.14				12.0	%			128.38				124.46				3.1	%
ADR ($)			194.77				194.28				0.3	%			253.24				235.19				7.7	%			187.64				189.26				-0.9	%
Occupancy (%)			69.5	%			66.8	%			2.7				79.2	%			76.2	%			3.0				68.4	%			65.8	%			2.6
W
REVPAR ($)			193.66				161.56				19.9	%			186.55				159.98				16.6	%			225.67				168.67				33.8	%
ADR ($)			264.72				247.46				7.0	%			257.52				242.17				6.3	%			295.52				272.99				8.3	%
Occupancy (%)			73.2	%			65.3	%			7.9				72.4	%			66.1	%			6.3				76.4	%			61.8	%			14.6
FOUR POINTS
REVPAR ($)			69.41				62.07				11.8	%			61.85				57.12				8.3	%			83.19				71.14				16.9	%
ADR ($)			109.64				106.07				3.4	%			101.24				99.75				1.5	%			123.51				116.99				5.6	%
Occupancy (%)			63.3	%			58.5	%			4.8				61.1	%			57.3	%			3.8				67.3	%			60.8	%			6.5