Starwood Hotels & Resorts Worldwide, Inc. JP Morgan Conference Jason Koval Vice President, Investor Relations December 2008

forward-looking statements These presentations contain forward-looking statements within the meaning of federal securities regulations. These forwardlooking statements generally can be identified by phrases such as Starwood or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements in this release that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. 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. Future results, performance and achievements may be affected by general economic conditions including the severity and duration of any downturn in the US or global economy, the impact of war and terrorist activity, business and financing conditions, including the availability of mortgage financing, foreign exchange fluctuations, cyclicality of the real estate, including the sale of residential units, and the hotel and vacation ownership businesses, operating risks associated with the sale of residential units, hotel and vacation ownership businesses, relationships with associates, 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 other circumstances and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. Although we believe the expectations reflected in such 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. Please note that these presentations include non-GAAP financial measures. For definitions of certain terms used herein and a presentation of the most directly comparable financial measure calculated and presented in accordance with GAAP and a reconciliation of the differences between the non-GAAP financial measure disclosed and the most comparable financial measure calculated and presented in accordance with GAAP, please refer to the Company’s web site at www.starwoodhotels.com.corporate/investor_relations.html.

Starwood’s Growth Strategy Powerful Hotel Brands Global Upper Upscale and Luxury Platform Best Global Hotel Pipeline High Value, Global Owned Hotel Portfolio Leading Vacation Ownership Business

Powerful Hotel Brands Luxury:

Upper Upscale:

• • • •

13 hotels and resorts 2,832 rooms 6 countries Uncompromising, Address, Bespoke

• • • •

59 hotels and resorts 9,810 rooms 18 countries Culture, Indigenous, Experience

• • • •

25 hotels 7,453 rooms 4 countries Flirty, Insider, Escape

• • • •

162 hotels 63,964 rooms 31 countries Personal, Instinctive, Renewal

• • • •

411 hotels 142,240 rooms 68 countries Warm, Comforting, Connections

• • • •

110 hotels 27,648 rooms 52 countries Chic, Cultured, Discovery

• • • •

134 hotels 23,554 rooms 23 countries Honest, Uncomplicated, Comfort

• 1 hotel • 123 rooms • Smart, Renewing, Haven

Select Service: • 10 hotels • 1,495 rooms • Sassy, Refreshing, Oasis

Well Balanced Across Three Complementary Lines of Business . . . EBITDA

(pre-overhead)

Starwood in 2007

Managed, Franchised Hotels & Other 43%

Owned Hotels 35%

SVO/ UJV 6% Residential

16%

* Based on 2007 full year results

Complementary Lines of Business Managed and Franchised Hotels

Owned Hotels

Enormous brand value

High Value Portfolio

Global distribution platform

Facilitates innovation and serves as brand “Standard Bearers”

Capital efficient growth

Enables capture of mixed use/SVO opportunities

Less cyclical

Starwood Vacation Ownership Taps high growth opportunities Leverages owned properties Strengthens customer loyalty

. . . and Internationally Diversified Managed and Franchised Fees

110,000 room Pipeline Breakdown

AP 16% US 45%

Europe 18% AME 12%

9%

AP

US

41%

38% EAME 16%

Owned EBITDA

EAME 20%

Americas

Americas

* Based on 2007 full year results pro-forma for asset sales as if they had occurred on January 1, 2007 * Americas include Canada and Latin America

US 56%

Americas 19% 5%

AP 5%

Managed and Franchised Growth Strategy „

Leading Pipeline in the Upper Upscale & Luxury segments •

Brand strength & investing in our development team

„

Leverage Strong International Platform

„

Significant Penetration Opportunity in the US

„

Think Like an Owner • • •

Margin / Return focus Signature service Skin in the game

Industry Leading Fee Growth

Leading Global Hotel Pipeline

27% =

Starwood’s share of the Upper Upscale and Luxury pipeline in North America (according to September 2008 Smith Travel Data)

Existing Rooms (1)

Pipeline

Starwood 281,573 110,000

Growth Potential

% Upper Up/Luxury

% Outside of the US (2)

39%

66%

62%

Marriott

550,453

130,000

24%

40%

27%

Hilton

483,000

111,000

23%

36%

10%

Industry Leading Fee Growth (1) Room supply is from 3Q08 earnings release for Starwood and Marriott and 1Q07 for Hilton, excluding timeshare (2) Hilton’s 10% number excludes Latin America and Canada

Leading Global Hotel Pipeline „

Starwood’s Current Pipeline = 110,000 rooms •

„

This should result in industry leading growth rates on our existing base of rooms

66% of Pipeline is in the Upper Upscale and Luxury categories (as of 3Q08) •

•

Management and Franchise contracts are calculated based on a percentage of revenue, which is driven by RevPAR RevPAR in the Upper Upscale and Luxury segments is roughly 2X that of the Upscale segment (e.g. Courtyard by Marriott and Hilton Garden Inn), implying that the rooms in Starwood’s pipeline are more valuable than the predominantly select serve pipelines of our competition

Industry Leading Fee Growth

Leading Global Hotel Pipeline „

Roughly 62% of the pipeline will be built outside of the United States – expanding our lead in international markets Experienced local development & operating teams lead our global efforts worldwide, including high growth regions such as China, India & the Middle East

Rooms (000's)

„

Starwood has a “Best in Class Platform”

130

120

120

100

110

80 Hotels

„

100 90

3Q08 2010

60 40

80 70

20

60

Starwood

Marriott

Hilton

0 China

Luxury & Upper Upscale International Room Supply (000s)

Industry Leading Fee Growth * Room supply is from 3Q08 earnings release for Starwood and Marriott and Hilton’s 2006 10-K

India

Middle East

Leverage Strong International Platform 2007 Fees Total Fee Split

Franchise Fees 26% Incentive Fees 26%

Base Management Fees 48%

Management Fees by Region (1)

Europe 19%

US 40%

AP 17% AME 16%

* Total management fees are combined base management and incentive fees.

Franchise Fees by Region

Europe 15% AP 10% AME 1% Americas 13%

8% Americas

US 61%

Significant Penetration Opportunity in the US “Significant Growth Opportunity” United States Existing Tracts

Additional Tract Opportunity

121

169

Le Méridien

5

167

Westin

42

129

W

10

79

St. Regis & The Luxury Collection

9

35

Sheraton

Owned Hotel Strategy „

Superior growth / IRR opportunities • •

„

Brand “Standard Bearers” • •

„

Re-development Re-positioning

Flagship hotels Centers for innovation

Continue to sell non-strategic hotels and opportunistically sell high-value assets, such as the Westin Turnberry and three Lido hotels that closed on October 31st, 2008 for roughly $500K/key

High Value, Global Portfolio of Owned Hotels

High Value, Global Owned Hotel Portfolio Mix of Owned Hotel EBITDA

AP 5% Americas 19% EAME 20%

US 56%

Resort

Urban

29%

56%

8% Airport

7% Suburban

* Based on 2007 full year results adjusted for asset sales as if they had occurred on January 1, 2007

Westin 26% St Regis/ Luxury 21%

Sheraton 33%

W 15%

Other Four Points

High Value, Global Owned Hotel Portfolio Top 40 Owned, Lease, and Consolidated Joint Venture Hotels (For Year Ended December 31, 2007) US Hotels

Location

Rms

International Hotels

Location

Rms

St. Regis Aspen St. Regis New York

Aspen, CO New York, NY

179 229

St. Regis Grand Hotel, Rome

Rome, Italy

161

The Phoenician

Scottsdale, AZ

643

W Chicago – City Center W Chicago – Lakeshore W Los Angeles Westwood W New Orleans W New York – The Court & Tuscany W New York – Times Square W San Francisco W Atlanta

Chicago, IL Chicago, IL Los Angeles, CA New Orleans, LA New York, NY New York, NY San Francisco, CA Atlanta, GA

369 520 258 423 318 507 404 275

Hotel Alfonso XIII Hotel Gritti Palace Hotel Imperial Park Tower, Buenos Aires

Seville, Spain Venice, Italy Vienna, Austria Buenos Aires, Argentina

147 91 140 180

The Westin Excelsior, Florence The Westin Excelsior, Rome The Westin Resort & Spa Cancun The Westin Resort & Spa, Los Cabos The Westin Resort & Spa Puerto Vallarta Westin St. John Resort & Villas

Florence, Italy Rome, Italy Cancun, Mexico San Jose del Cabo, Mexico Puerto Vallarta, Mexico St. John, Virgin Islands

171 319 379 243 280 174

Westin Maui Resort & Spa Westin Peachtree Plaza Westin Horton Plaza San Diego Westin San Francisco Airport

Lahaina, HI Atlanta, GA San Diego, CA San Francisco, CA

759 1068 450 397

Buenos Aires, Argentina Toronto, Canada Toronto, Canada Mexico City, Mexico Sydney, Australia Roissy Aerogare, France Montreal, Canada London, England

739 1377 474 755 557 252 825 305

Sydney, Australia

630

Sheraton Bal Harbour Beach Resort Bal Harbour, FL Sheraton Kauai Resort Koloa, HI Sheraton Manhattan Hotel New York, NY

645 394 665

Sheraton Buenos Aires Hotel & Convention Ctr Sheraton Centre Toronto Hotel Sheraton Gateway Hotel in Toronto Int’l Hotel Sheraton Maria Isabel Hotel & Towers Sheraton on The Park Sheraton Paris Airport Hotel Charles de Gaulle Le Centre Sheraton Hotel The Park Lane Hotel

Boston Park Plaza Hotel

941

Four Points Sydney Hotel

Boston, MA

Top 40 hotels represent approximately 90% of owned, lease and consolidated joint venture earnings before depreciation

Vacation Ownership Business Starwood continues to gain incremental system value by aligning Timeshare & Hotel assets

Benefits to Hotels Hotels • Guaranteed occupancy year round • Additional revenue from preview guests, renters and owners • Leased hotel space • Concierge services • HOA shares in certain hotel operating costs

Benefits to SVO Timeshare Leverage Resources Amenities Management Infrastructure

•Access to guests for tour flow •Access to great brands •Leverage existing assets & infrastructure •Rooms for preview and explorer packages •VOI Sales to hotel & vacation package guests

Vacation Ownership Brands Product portfolio well balanced and addresses the needs of a vast demographic audience

% of Total YTD 2008 Contract Sales (1) (originated sales) Price Range

(2)

Average 2007 Contract Amount Target Customer Household Income Age Net Worth

35%

60%

5%

$8K - $120K/ Week

$14K - $125K/ Week

$176K - $760K/ Fraction

~$16,400

~$32,400

~$400,000

>$50k 35-54 $75k - $750k

>$75k 35-64 $150k - $1M

>$150k 35-74 $1M+

(1) Excluding Harborside at Atlantis (2) Price ranges based on annual products and of resorts in sales through September 2008

Vacation Ownership Operating Income Distribution 2007 Operating Income Distribution JV Equity Earnings Resort Income

(1)

Timeshare sales are the main driver of segment profitability and they account for over two thirds of segment income

4%

7%

Financing income is a valuable income stream which is typically comprised of the following components „ „

Financing Income

Timeshare Sales

22%

67%

„

Interest Income Retained Interest Amortization Gain on Sale of Receivables

Resort operations income continues to grow as new resorts are added to the system Equity earnings is driven by our joint venture with the Kerzner group at the Atlantis Resort

(1) Timeshare sales also includes G&A, Depreciation & Amortization, Net Interest Expense and Other Income

Balance Sheet and Liquidity •Investment Grade Rating (Baa3/BBB-) •Debt/TTM EBITDA at 3Q08 of 3.3X •Ample Liquidity •$321 million in cash and restricted cash as of 3Q08 •$1.9 billion committed revolver (matures 2011) with $1.6 billion available as of 3Q08 •Closed on four asset sales on October 31, 2008 with additional proceeds of $310 million Existing borrowing capacity will be augmented by proceeds from additional asset sales and free cash flow generation

Starwood’s Use of Funds Fund Growth „

Acquire/Develop New Brands −

−

„

−

„

Complement existing brands for consumers and developers Significant growth potential when added to our system

Acquire/Reposition Real Estate −

Return Value to Shareholders

Growth and monetization potential Meet/Exceed Hurdle Rates

$0.90 dividend declared for 2008 −

„

C-Corp leading dividend yield of 6.0%

Share Buybacks −

The Company has reduced the diluted share count by 20% over the last three years.

2008 Guidance* • • • • • •

WW Owned and Managed RevPAR: Managed and Franchised Revenues: NA Owned RevPAR: Margin Improvement: EBITDA: EPS:

+2-4% +4-6% -1 to +1% -250 to -150bps $1.135-1.150B $2.07-2.13

Industry Leading Shareholder Value Creation * 2008 guidance given during 3Q08 earnings call on October 23rd, 2008