STARWOOD TO ENHANCE BEST RATE GUARANTEE ON ITS BRANDED WEBSITES  -- LOWEST RATES ANYWHERE

Easier Claim Process Plus New Incentives Are Some Changes to Pioneering Program

WHITE PLAINS, NY – March 23, 2004 – Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) announced today that the company will enhance its “Best Rate Guarantee” on its branded websites (www.starwood.com; www.spg.com; www.sheraton.com; www.whotels.com; www.westin.com; www.stregis.com; www.fourpoints.com; www.luxurycollection.com. “Best Rate Guarantee” pledges that Starwood’s branded websites will offer the lowest published rates available anywhere.

Starwood was one of the first hotel companies to launch a rate guarantee program back in May of 2002, and since then, all the major hotel companies have followed suit.  Starwood is enhancing  “Best Rate Guarantee” to make it easier, faster and more lucrative. Changes include:

• New Incentive.  Originally, if travelers found a lower rate through any other online distributor, Starwood would match the rate and offer an additional 10 percent off that price.  Now, travelers will have the option of either 10% off or 2,000 Starwood Preferred Guest Starpoints, which equals one free night at some hotels.
• Easier Claim Process.  Travelers can now file claims electronically via Starwood.com and they can make a claim prior to booking.  In addition, travelers can now make claims up to 24 hours before their stay instead of the 72 hours required before.  
• “Best Rate Guarantee” Expands Globally.  “Best Rate Guarantee” is now applicable to every Westin, Sheraton, St. Regis, The Luxury Collection, Four Points by Sheraton and W branded hotel worldwide.

“It is our intention to make Starwood’s ‘Best Rate Guarantee’ easier, faster and more lucrative,” said Tom Botts, Starwood’s vice president of distribution and operations.    “‘Best Rate Guarantee’ is the best way to not only ensure rate integrity on Starwood’s websites, but also assure our guests that the rates on our sites are the best published rates anywhere, or else we’ll make it right.” 

According to Botts, Starwood has seen a significant increase in booking conversions on its sites since launching “Best Rate Guarantee” almost two years ago.  The company also has seen a shift in share from travelers booking on third party sites to booking on Starwood’s sites.    “It is no secret that we want guests to book through our websites, and by providing the best rates, unmatched service, excellent content and frequent guest benefits and points on our sites, there is no reason travelers should book anywhere else.”

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with more than 740 properties in more than 80 countries and 105,000 employees at its owned and managed properties. With internationally renowned brands, Starwood is a fully integrated owner, operator and franchisor of hotels and resorts including: St. Regis, The Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as well as Starwood Vacation Ownership, Inc., one of the premier developers and operators of high quality vacation interval ownership resorts. For more information, please visit www.starwood.com.  

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