Management and franchise revenues decreased 4

Includingspecial items, EPS from continuing operations was a loss of $0.25 Total Company Adjusted EBITDA was $273 million. Excluding special items, income from continuing operations was $88 million.Including special items, the loss from continuing operations was $45 million. Special items totaled $133 million of net charges ($0.74 per share) primarilyrelated to $30 million of severance costs, $79 million of impairment chargesfrom discontinued vacation ownership projects and $86 million of impairmentcharges primarily at five owned hotels in North America. Worldwide System-wide REVPAR for Same-Store Hotels decreased 12.1 (9.1 inconstant dollars) compared to the fourth quarter of 2007. System-wide REVPAR forSame-Store Hotels in North America decreased 13.2 (11.7 in constant dollars). Management and franchise revenues decreased 4.7 compared to 2007.

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels decreased 19.6(15.4 in constant dollars) compared to the fourth quarter of 2007. Margins at Starwood branded Same-Store Owned Hotels Worldwide and in NorthAmerica decreased 479 and 596 basis points, respectively, compared to the fourthquarter of 2007. Revenues from vacation ownership and residential sales decreased 48.7compared to 2007. The Company signed 31 hotel management and franchise contracts in the quarterrepresenting approximately 6,100 rooms. For the full year, the Company signed147 hotel contracts representing approximately 35,700 rooms.Fourth Quarter 2008 Earnings SummaryStarwood Hotels & Resorts Worldwide, Inc.

("Starwood" or the "Company") todayreported a loss from continuing operations for the fourth quarter of 2008 of$0.25 per share compared to EPS of $0.74 in the fourth quarter of 2007.Excluding special items, which net to a charge of $133 million in 2008 and $11million in 2007, EPS from continuing operations was $0.49 for the fourth quarterof 2008 compared to $0.79 in the fourth quarter of 2007. Excluding specialitems, the effective income tax rate in the fourth quarter of 2008 was 27.5compared to 28.5 in the same period of 2007. Special items in the fourth quarter of 2008 totaled $133 million of net charges($0.74 per share) primarily related to $30 million of severance costs, $79million of impairment charges from discontinued vacation ownership projects, and$86 million of impairment charges primarily at five owned hotels in NorthAmerica. Excluding special items, incomefrom continuing operations was $88 million for the fourth quarter of 2008compared to $157 million in 2007. Net income was $79 million and EPS was $0.43 in the fourth quarter of 2008compared to $146 million and EPS of $0.74 in the fourth quarter of 2007. The2008 results include a gain of $124 million (net of taxes) in discontinuedoperations, resulting from the sale of three hotels which were sold unencumberedby management or franchise agreements.