Exhibit 99.1

CONTACT:

Jason Koval (914) 640-4429

FOR IMMEDIATE RELEASE
July 28, 2011

STARWOOD REPORTS SECOND QUARTER 2011 RESULTS

WHITE PLAINS, NY, July 28, 2011 — Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported second quarter 2011 financial results.

Second Quarter 2011 Highlights

	•		Excluding special items, EPS from continuing operations was $0.50, an increase of 43% compared to 2010. Including special items, EPS from continuing operations was $0.77.
	•		Adjusted EBITDA was $262 million.
	•		Excluding special items, income from continuing operations was $97 million. Including special items, income from continuing operations was $150 million.
	•		Worldwide System-wide REVPAR for Same-Store Hotels increased 11.8% (8.2% in constant dollars) compared to 2010. System-wide REVPAR for Same-Store Hotels in North America increased 9.5% (8.7% in constant dollars).
	•		Management fees, franchise fees and other income increased 13.6% compared to 2010.
	•		Worldwide Same-Store company-operated gross operating profit margins increased approximately 90 basis points compared to 2010. Gross operating profits were negatively impacted by events in the Middle East, North Africa and Japan.
	•		Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 18.5% (12.5% in constant dollars) compared to 2010. REVPAR for Starwood branded Same-Store Owned Hotels in North America increased 10.8% (8.7% in constant dollars).
	•		Margins at Starwood branded Same-Store Owned Hotels Worldwide increased approximately 225 basis points compared to 2010.
	•		Earnings from our vacation ownership and residential business were flat compared to 2010.
	•		During the quarter, the Company completed the sales of two wholly-owned hotels and one consolidated joint venture hotel for cash proceeds of approximately $281 million and the assumption of approximately $57 million of debt by the buyer.
	•		During the quarter, the Company signed 22 hotel management and franchise contracts representing approximately 5,900 rooms and opened 13 hotels and resorts with approximately 2,900 rooms.

Second Quarter 2011 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the second quarter of 2011 of $0.77 per share compared to $0.42 in the second quarter of 2010. Excluding special items, EPS from continuing operations was $0.50 for the second quarter of 2011 compared to $0.35 in the second quarter of 2010. Special items in the second quarter of 2011, which totaled $53 million (after-tax), primarily relate to a tax benefit associated with the sale of two wholly-owned hotels. Excluding special items, the effective income tax rate in the second quarter of 2011 was 25.4%, compared to 16.1% in the second quarter of 2010.

Income from continuing operations was $150 million in the second quarter of 2011 compared to $79 million in the second quarter of 2010. Excluding special items, income from continuing operations was $97 million in the second quarter of 2011 compared to $67 million in the second quarter of 2010.

Net income was $131 million and $0.68 per share in the second quarter of 2011 compared to $114 million and $0.61 per share in the second quarter of 2010. Net income in the second quarter of 2011 includes an $18 million after-tax loss in discontinued operations from the sale of a consolidated joint venture hotel and net income in the second quarter of 2010 included a $36 million after-tax gain in discontinued operations from the sale of a wholly-owned hotel.

Frits van Paasschen, CEO said, “We continue to see strong demand across both business and leisure travelers. This demand fueled growth across each of our nine distinct and compelling brands. Our efforts to hold the line on costs enabled us to beat EBITDA and EPS expectations in the quarter.”

“Our senior leadership team relocated to China for the month of June as part of an effort to get closer to this growing market. Being there has reinforced our view that China and other rapidly growing markets represent a once-in-a-lifetime growth opportunity for us. Our asset light business model and global brands are well-positioned to benefit from this phenomenon.”

Six Months Ended June 30, 2011 Earnings Summary

Income from continuing operations was $179 million in the six months ended June 30, 2011 compared to $109 million in the same period in 2010. Excluding special items, income from continuing operations was $155 million in the six months ended June 30, 2011 compared to $91 million in the same period in 2010.

Net income was $159 million and $0.82 per share in the six months ended June 30, 2011 compared to $144 million and $0.77 per share in the same period in 2010.

Adjusted EBITDA was $470 million in the six months ended June 30, 2011 compared to $405 million in the same period in 2010.

Second Quarter 2011 Operating Results

Management and Franchise Revenues

Worldwide System-wide REVPAR for Same-Store Hotels increased 11.8% (8.2% in constant dollars) compared to the second quarter of 2010. International System-wide REVPAR for Same-Store Hotels increased 14.8% (7.4% in constant dollars).

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

		REVPAR
Region		Reported				Constant dollars
North America			9.5	%			8.7	%
Europe			24.8	%			12.2	%
Asia Pacific			14.4	%			7.3	%
Africa and the Middle East			(7.1	)%			(7.2	)%
Latin America			17.1	%			17.1	%

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

		REVPAR
Brand		Reported				Constant dollars
St. Regis/Luxury Collection			20.6	%			14.9	%
W Hotels			16.9	%			15.8	%
Westin			11.7	%			8.3	%
Sheraton			8.3	%			5.2	%
Le Méridien			14.2	%			7.6	%
Four Points by Sheraton			12.0	%			8.2	%
Aloft			16.6	%			16.3	%

Excluding North Africa and Japan, REVPAR increases in constant dollars were 7.5% for Sheraton and 9.4% for Le Méridien.

Worldwide Same-Store company-operated gross operating profit margins increased approximately 90 basis points compared to 2010. International gross operating profit margins for Same-Store company-operated properties were flat, negatively impacted by political unrest in the Middle East and North Africa, as well as the earthquake in Japan. North American Same-Store company-operated gross operating profit margins increased approximately 170 basis points, driven by REVPAR increases and cost controls.

Management fees, franchise fees and other income were $201 million, up $24 million, or 13.6% from the second quarter of 2010. Management fees increased 11.0% to $111 million and franchise fees increased 19.5% to $49 million. Excluding North Africa and Japan, management fees increased 16.1%.

During the second quarter of 2011, the Company signed 22 hotel management and franchise contracts, representing approximately 5,900 rooms, of which 20 are new builds and two are conversions from other brands. At June 30, 2011, the Company had over 350 hotels in the active pipeline representing almost 90,000 rooms.

During the second quarter of 2011, 13 new hotels and resorts (representing approximately 2,900 rooms) entered the system, including the W St. Petersburg (Russia, 137 rooms), St. Regis Bangkok (Thailand, 116 rooms), Sheraton Bangalore (India, 230 rooms), The Westin Playa Conchal (Costa Rica, 406 rooms) and The Chatwal, a Luxury Collection Hotel (New York, 83 rooms). Six properties (representing approximately 1,700 rooms) were removed from the system during the quarter, including the 941 room Boston Park Plaza, where we sold our interest in the quarter.

Owned, Leased and Consolidated Joint Venture Hotels

Worldwide REVPAR for Starwood branded Same-Store Owned Hotels increased 18.5% (12.5% in constant dollars) in the second quarter of 2011 when compared to 2010. REVPAR at Starwood branded Same-Store Owned Hotels in North America increased 10.8% (8.7% in constant dollars). Internationally, Starwood branded Same-Store Owned Hotel REVPAR increased 27.9% (17.2% in constant dollars).

Revenues at Starwood branded Same-Store Owned Hotels in North America increased 9.3% while costs and expenses increased 5.9% when compared to 2010. Margins at these hotels increased approximately 255 basis points.

Revenues at Starwood branded Same-Store Owned Hotels Worldwide increased 15.0% (9.3% in constant dollars) while costs and expenses increased 11.7% (6.5% in constant dollars) when compared to 2010. Margins at these hotels increased approximately 225 basis points.

Revenues at owned, leased and consolidated joint venture hotels were $478 million, compared to $437 million in 2010. Expenses at owned, leased and consolidated joint venture hotels were $381 million compared to $347 million in 2010. Second quarter results were impacted by the effect of the earthquake at the new leased St. Regis Osaka, five renovations and three asset sales.

Vacation Ownership

Total vacation ownership revenues increased 9.9% to $144 million compared to 2010. Originated contract sales of vacation ownership intervals increased 8.1% primarily due to improved sales performance from existing owner channels and increased tour flow from new buyer preview packages. The number of contracts signed increased 5.3% when compared to 2010 and the average price per vacation ownership unit sold increased 2.0% to approximately $14,800, driven by inventory mix.

Selling, General, Administrative and Other

Selling, general, administrative and other expenses decreased 4.3% to $88 million compared to $92 million in 2010. Selling, general, administrative and other expenses declined relative to 2010 due to lower accruals for incentive compensation and lower legal expenses, offset by a weaker dollar.

Capital

Gross capital spending during the quarter included approximately $51 million of maintenance capital and $32 million of development capital. Net investment spending on

vacation ownership interest (“VOI”) and residential inventory was $31 million, primarily related to the St. Regis Bal Harbour project.

Asset Sales

During the quarter, the Company completed the sales of two wholly-owned hotels, the Westin Gaslamp (San Diego) and W City Center (Chicago), for cash proceeds of approximately $237 million. These hotels were sold subject to long-term management contracts. Additionally during the quarter, the Company sold a consolidated joint venture hotel, the Boston Park Plaza, for cash proceeds of approximately $44 million and the buyer assumed $57 million of debt that was previously on our balance sheet. The Company recognized an after-tax loss in discontinued operations of $18 million as a result of the sale.

Balance Sheet

At June 30, 2011, the Company had gross debt of $2.800 billion, excluding $422 million of debt associated with securitized vacation ownership notes receivable. Additionally, the Company had cash and cash equivalents of $1.060 billion (including $61 million of restricted cash), and net debt of $1.740 billion, compared to net debt of $2.121 billion as of March 31, 2011. Net debt at June 30, 2011 including debt and restricted cash ($18 million) associated with securitized vacation ownership notes receivables was $2.144 billion.

At June 30, 2011, debt was approximately 77% fixed rate and 23% floating rate and its weighted average maturity was 3.74 years with a weighted average interest rate of 6.79% excluding the securitized debt. The Company had cash (including current restricted cash) and availability under the domestic and international revolving credit facility of approximately $2.546 billion.

Outlook

For the three months ended September 30, 2011:

•

Adjusted EBITDA is expected to be approximately $225 million to $235 million, including asset sales completed to date, which reduce EBITDA by approximately $8 million, and assuming:

	•		REVPAR increases at Same-Store Company Operated Hotels Worldwide of 7% to 9% in constant dollars (approximately 500 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 700 basis points higher in dollars at current exchange rates).
	•		Management fees, franchise fees and other income increase of approximately 13% to 15%.
	•		Earnings from our vacation ownership and residential business are flat.

	•		Depreciation and amortization is expected to be approximately $76 million.
	•		Interest expense is expected to be approximately $55 million.
	•		Income from continuing operations is expected to be approximately $70 million to $78 million, reflecting an effective tax rate of approximately 25%.
	•		Assuming all of the above, EPS before special items is expected to be approximately $0.36 to $0.40.

For the Full Year 2011:

Macro-economic and geo-political environments remain uncertain. 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, negatively impacted by Japan, North Africa and Mexico; and asset sales completed year to date:

•

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 300 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 400 basis points higher in dollars at current exchange rates).
	•		Asset sales completed to date reduce EBITDA for the year by approximately $20 million.
	•		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 11% to 13% and were negatively impacted by approximately 200 basis points by Japan and North Africa.
	•		Earnings from our vacation ownership and residential business of approximately $130 million to $140 million.
	•		Selling, general and administrative expenses increase 4% to 5%.

•

Depreciation and amortization is expected to be approximately $310 million.

•

Interest expense is expected to be approximately $230 million and cash taxes will be approximately $80 million.

•

Full year effective tax rate is expected to be approximately 25%.

•

Assuming all of the above, EPS before special items is expected to be approximately $1.67 to $1.77.

•

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 fourth quarter 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 the fourth quarter of 2011 and the Company will provide updates as the year progresses. Bal Harbour capital expenditure for 2011 is expected to be approximately $150 million.

Special Items

The Company’s special items netted to a benefit of $2 million ($53 million after-tax) in the second quarter of 2011 compared to a benefit of $21 million ($12 million after-tax) in the same period of 2010.

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									Six Months Ended
June 30,									June 30,
2011			2010						2011				2010
$	97		$	67			Income from continuing operations before special items		$	155			$	91
$	0.50		$	0.35			EPS before special items		$	0.80			$	0.48
							Special Items
	—			1			Restructuring, goodwill impairment, and other special charges (credits), net (a)			—				1
	2			20			Gain (loss) on asset dispositions and impairments, net (b)			(31	)			21
	2			21			Total special items — pre-tax			(31	)			22
	—			(9	)		Income tax benefit (expense) for special items (c)			—				(4	)
	51			—			Income tax benefit (expense) associated with dispositions (d)			55				—
	53			12			Total special items — after-tax			24				18
$	150		$	79			Income from continuing operations		$	179			$	109
$	0.77		$	0.42			EPS including special items		$	0.92			$	0.58

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 second 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 August 4, 2011 at 12:00 midnight (EDT) on both the Company’s website and via telephone replay at (706) 645-9291 (pass code #23166636).

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 represent 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 earnings from vacation ownership and residential represents operating income before depreciation expense.

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 1,058 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, including reconciliations of non-GAAP financial measures to GAAP financial measures, please visit www.starwoodhotels.com or contact Investor Relations at (914) 640-8165.

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, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), 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														Six Months Ended
June 30,														June 30,
								%														%
2011				2010				Variance						2011				2010				Variance
												Revenues
$	478			$	437				9.4			Owned, leased and consolidated joint venture hotels		$	888			$	818				8.6
	146				137				6.6			Vacation ownership and residential sales and services			299				270				10.7
	201				177				13.6			Management fees, franchise fees and other income			378				330				14.5
	601				538				11.7			Other revenues from managed and franchised properties (a)			1,156				1,058				9.3
	1,426				1,289				10.6						2,721				2,476				9.9
												Costs and Expenses
	381				347				(9.8	)		Owned, leased and consolidated joint venture hotels			742				676				(9.8	)
	112				103				(8.7	)		Vacation ownership and residential			223				204				(9.3	)
	88				92				4.3			Selling, general, administrative and other			168				168				—
	—				(1	)			(100.0	)		Restructuring, goodwill impairment and other special charges (credits), net			—				(1	)			(100.0	)
	60				66				9.1			Depreciation			120				132				9.1
	7				7				—			Amortization			15				17				11.8
	601				538				(11.7	)		Other expenses from managed and franchised properties (a)			1,156				1,058				(9.3	)
	1,249				1,152				(8.4	)					2,424				2,254				(7.5	)
	177				137				29.2			Operating income			297				222				33.8
	7				3				n/m			Equity (losses) earnings and gains and (losses) from unconsolidated ventures, net.			11				6				83.3
	(52	)			(59	)			11.9			Interest expense, net of interest income of $0, $0, $1 and $1			(106	)			(121	)			12.4
	2				20				(90.0	)		Gain (loss) on asset dispositions and impairments, net			(31	)			21				n/m
	134				101				32.7			Income from continuing operations before taxes and noncontrolling interests			171				128				33.6
	16				(22	)			n/m			Income tax benefit (expense)			6				(21	)			n/m
	150				79				89.9			Income (loss) from continuing operations			177				107				65.4
												Discontinued Operations:
	—				(1	)			100.0			Income (loss) from operations, net of tax			—				(1	)			100.0
	(19	)			36				n/m			Gain (loss) on dispositions, net of tax			(20	)			36				n/m
	131				114				14.9			Net income			157				142				10.6
	—				—				—			Net loss (income) attributable to noncontrolling interests			2				2				—
$	131			$	114				14.9			Net income attributable to Starwood		$	159			$	144				10.4
												Earnings (Losses) Per Share — Basic
$	0.79			$	0.44				79.5			Continuing operations		$	0.95			$	0.60				58.3
	(0.10	)			0.19				n/m			Discontinued operations			(0.11	)			0.19				n/m
$	0.69			$	0.63				9.5			Net income		$	0.84			$	0.79				6.3
												Earnings (Losses) Per Share — Diluted
$	0.77			$	0.42				83.3			Continuing operations		$	0.92			$	0.58				58.6
	(0.09	)			0.19				n/m			Discontinued operations			(0.10	)			0.19				n/m
$	0.68			$	0.61				11.5			Net income		$	0.82			$	0.77				6.5
												Amounts attributable to Starwood’s Common Shareholders
$	150			$	79				89.9			Continuing operations		$	179			$	109				64.2
	(19	)			35				n/m			Discontinued operations			(20	)			35				n/m
$	131			$	114				14.9			Net income		$	159			$	144				10.4
	189				182							Weighted average number of shares			188				182
	195				189							Weighted average number of shares assuming dilution			195				188

n/m = not meaningful

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

CONSOLIDATED BALANCE SHEETS
(In millions, except share data)

		June 30,				December 31,
		2011				2010
		(unaudited)
Assets
Current assets:
Cash and cash equivalents		$	999			$	753
Restricted cash			78				53
Accounts receivable, net of allowance for doubtful accounts of $39 and $45			584				513
Inventories			848				802
Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $9 and $10			56				59
Prepaid expenses and other			185				126
Total current assets			2,750				2,306
Investments			294				312
Plant, property and equipment, net			3,129				3,323
Assets held for sale			—				—
Goodwill and intangible assets, net			2,047				2,067
Deferred tax assets			988				979
Other assets (a)			440				381
Securitized vacation ownership notes receivable			351				408
		$	9,999			$	9,776
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt (b)		$	612			$	9
Accounts payable			140				138
Current maturities of long-term securitized vacation ownership debt			121				127
Accrued expenses			1,226				1,104
Accrued salaries, wages and benefits			341				410
Accrued taxes and other			302				373
Total current liabilities			2,742				2,161
Long-term debt (b)			2,188				2,848
Long-term securitized vacation ownership debt			301				367
Deferred income taxes			30				28
Other liabilities			1,935				1,886
			7,196				7,290
Commitments and contingencies
Stockholders’ equity:
Common stock; $0.01 par value; authorized 1,000,000,000 shares; outstanding 195,461,305 and 192,970,437 shares at June 30, 2011 and December 31, 2010, respectively			2				2
Additional paid-in capital			901				805
Accumulated other comprehensive loss			(207	)			(283	)
Retained earnings			2,106				1,947
Total Starwood stockholders’ equity			2,802				2,471
Noncontrolling interest			1				15
Total equity			2,803				2,486
		$	9,999			$	9,776

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

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

Three Months Ended														Six Months Ended
June 30,														June 30,
2011				2010				% Variance						2011				2010				% Variance
												Reconciliation of Net Income to EBITDA and Adjusted EBITDA
$	131			$	114				14.9			Net income		$	159			$	144				10.4
	54				64				(15.6	)		Interest expense (a)			113				130				(13.1	)
	(15	)			(12	)			(25.0	)		Income tax (benefit) expense (b)			(4	)			(13	)			69.2
	67				75				(10.7	)		Depreciation (c)			135				149				(9.4	)
	9				8				12.5			Amortization (d)			18				19				(5.3	)
	246				249				(1.2	)		EBITDA			421				429				(1.9	)
	(2	)			(20	)			(90.0	)		(Gain) loss on asset dispositions and impairments, net			31				(21	)			n/m
	18				(2	)			n/m			Discontinued operations (gain) loss on dispositions			18				(2	)			n/m
	—				(1	)			100.0			Restructuring, goodwill impairment and other special charges (credits), net			—				(1	)			100.0
$	262			$	226				15.9			Adjusted EBITDA		$	470			$	405				16.0

Non-GAAP to GAAP Reconciliations — Branded Same-Store Owned Hotels Worldwide
(In millions)

		Three Months Ended
		June 30, 2011
		$ Change				% Variance
Revenue
Revenue increase (GAAP)		$	49				15.0	%
Impact of changes in foreign exchange rates			(19	)			(5.7	)%
Revenue increase in constant dollars		$	30				9.3	%
Expense
Expense increase (GAAP)		$	30				11.7	%
Impact of changes in foreign exchange rates			(13	)			(5.2	)%
Expense increase in constant dollars		$	17				6.5	%

Non-GAAP to GAAP Reconciliation — Earnings from Vacation Ownership and Residential Business
(In millions)

		Three Months Ended												Six Months Ended
		June 30,												June 30,
										$												$
		2011				2010				Variance				2011				2010				Variance
Earnings from vacation ownership and residential		$	34			$	34			$	—			$	76			$	66			$	10
Depreciation expense			(5	)			(7	)			2				(12	)			(14	)			2
Operating income from vacation ownership and residential		$	29			$	27			$	2			$	64			$	52			$	12

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
September 30, 2011						December 31, 2011
$	70			Net income		$	330
	55			Interest expense			230
	24			Income tax expense(a)			56
	76			Depreciation and amortization			310
	225			EBITDA			926
	—			(Gain) loss on asset dispositions and impairments, net			31
	—			Discontinued operations (gain) loss on dispositions			18
$	225			Adjusted EBITDA		$	975

Three Months Ended						Year Ended
September 30, 2011						December 31, 2011
$	70			Income from continuing operations before special items		$	326
$	0.36			EPS before special items		$	1.67
				Special Items
	—			Gain (loss) on asset dispositions and impairments, net			(31	)
	—			Total special items — pre-tax			(31	)
	—			Income tax benefit associated with dispositions			55
	—			Total special items — after-tax			24
$	70			Income from continuing operations		$	350
$	0.36			EPS including special items		$	1.79

High Case

Three Months Ended						Year Ended
September 30, 2011						December 31, 2011
$	78			Net income		$	349
	55			Interest expense			230
	26			Income tax expense(a)			62
	76			Depreciation and amortization			310
	235			EBITDA			951
	—			(Gain) loss on asset dispositions and impairments, net			31
	—			Discontinued operations (gain) loss on dispositions			18
$	235			Adjusted EBITDA		$	1,000

Three Months Ended						Year Ended
September 30, 2011						December 31, 2011
$	78			Income from continuing operations before special items		$	345
$	0.40			EPS before special items		$	1.77
				Special Items
	—			Gain (loss) on asset dispositions and impairments, net			(31	)
	—			Total special items — pre-tax			(31	)
	—			Income tax benefit associated with dispositions			55
	—			Total special items — after-tax			24
$	78			Income from continuing operations		$	369
$	0.40			EPS including special items		$	1.89

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations — Future Earnings from Vacation Ownership and Residential Business
(In millions)

		Three Months Ended
		September 30,
										$
		2011				2010				Variance
Earnings from vacation ownership and residential		$	34			$	34			$	—
Depreciation expense			(5	)			(7	)			2
Operating income from vacation ownership and residential		$	29			$	27			$	2

Non-GAAP to GAAP Reconciliations — Future Earnings from Vacation Ownership and Residential Business
(In millions)

Low Case

Three Months Ended						Year Ended
September 30, 2011						December 31, 2011
$	34			Earnings from vacation ownership and residential		$	130
	(5	)		Depreciation expense			(23	)
$	29			Operating income from vacation ownership and residential		$	107

High Case

Three Months Ended						Year Ended
September 30, 2011						December 31, 2011
$	34			Earnings from vacation ownership and residential		$	140
	(5	)		Depreciation expense			(23	)
$	29			Operating income from vacation ownership and residential		$	117

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
Non-GAAP to GAAP Reconciliations — Same Store Owned Hotel Revenue and Expenses
(In millions)

Three Months Ended														Six Months Ended
June 30,														June 30,
								%				Same-Store Owned Hotels										%
2011				2010				Variance				Worldwide		2011				2010				Variance
												Revenue
$	400			$	350				14.3			Same-Store Owned Hotels (a)		$	726			$	654				11.0
	18				39				(53.8	)		Hotels Sold or Closed in 2011 and 2010			42				70				(40.0	)
	52				46				13.0			Hotels Without Comparable Results			106				92				15.2
	8				2				n/m			Other ancillary hotel operations			14				2				n/m
$	478			$	437				9.4			Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	888			$	818				8.6
												Costs and Expenses
$	305			$	276				(10.5	)		Same-Store Owned Hotels (a)		$	585			$	538				(8.7	)
	14				30				53.3			Hotels Sold or Closed in 2011 and 2010			38				58				34.5
	54				40				(35.0	)		Hotels Without Comparable Results			105				78				(34.6	)
	8				1				n/m			Other ancillary hotel operations			14				2				n/m
$	381			$	347				(9.8	)		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	742			$	676				(9.8	)

Three Months Ended														Six Months Ended
June 30,														June 30,
								%				Same-Store Owned Hotels										%
2011				2010				Variance				North America		2011				2010				Variance
												Revenue
$	217			$	200				8.5			Same-Store Owned Hotels (a)		$	406			$	380				6.8
	18				39				(53.8	)		Hotels Sold or Closed in 2011 and 2010			42				70				(40.0	)
	31				36				(13.9	)		Hotels Without Comparable Results			72				76				(5.3	)
	—				—				—			Other ancillary hotel operations			—				—				—
$	266			$	275				(3.3	)		Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	520			$	526				(1.1	)
												Costs and Expenses
$	173			$	165				(4.8	)		Same-Store Owned Hotels (a)		$	336			$	322				(4.3	)
	14				30				53.3			Hotels Sold or Closed in 2011 and 2010			38				58				34.5
	32				32				—			Hotels Without Comparable Results			66				64				(3.1	)
	—				—				—			Other ancillary hotel operations			—				—				—
$	219			$	227				3.5			Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses.		$	440			$	444				0.9

Three Months Ended														Six Months Ended
June 30,														June 30,
								%				Same-Store Owned Hotels										%
2011				2010				Variance				International		2011				2010				Variance
												Revenue
$	183			$	150				22.0			Same-Store Owned Hotels (a)		$	320			$	274				16.8
	—				—				—			Hotels Sold or Closed in 2011 and 2010			—				—				—
	21				10				n/m			Hotels Without Comparable Results			34				16				n/m
	8				2				n/m			Other ancillary hotel operations			14				2				n/m
$	212			$	162			$	30.9			Total Owned, Leased and Consolidated Joint Venture Hotels Revenue		$	368			$	292				26.0
												Costs and Expenses
$	132			$	111				(18.9	)		Same-Store Owned Hotels (a)		$	249			$	216				(15.3	)
	—				—				—			Hotels Sold or Closed in 2011 and 2010			—				—				—
	22				8				n/m			Hotels Without Comparable Results			39				14				n/m
	8				1				n/m			Other ancillary hotel operations			14				2				n/m
$	162			$	120				(35.0	)		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses		$	302			$	232				(30.2	)

n/m = not meaningful

Starwood Hotels & Resorts Worldwide, Inc.
Systemwide⁽¹⁾ Statistics — Same Store
For the Three Months Ended June 30,
UNAUDITED

		Systemwide - Worldwide												Systemwide - North America												Systemwide - International
		2011				2010				Variance				2011				2010				Variance				2011				2010				Variance
TOTAL HOTELS
REVPAR ($)			118.13				105.69				11.8	%			114.15				104.21				9.5	%			123.67				107.77				14.8	%
ADR ($)			168.58				156.95				7.4	%			154.97				147.92				4.8	%			190.05				171.04				11.1	%
Occupancy (%)			70.1	%			67.3	%			2.8				73.7	%			70.4	%			3.3				65.1	%			63.0	%			2.1
SHERATON
REVPAR ($)			98.45				90.93				8.3	%			96.65				90.35				7.0	%			100.84				91.70				10.0	%
ADR ($)			144.23				136.33				5.8	%			134.04				129.49				3.5	%			159.68				146.46				9.0	%
Occupancy (%)			68.3	%			66.7	%			1.6				72.1	%			69.8	%			2.3				63.2	%			62.6	%			0.6
WESTIN
REVPAR ($)			134.38				120.34				11.7	%			128.13				116.25				10.2	%			152.28				132.05				15.3	%
ADR ($)			181.83				170.34				6.7	%			169.28				161.35				4.9	%			221.37				198.24				11.7	%
Occupancy (%)			73.9	%			70.6	%			3.3				75.7	%			72.0	%			3.7				68.8	%			66.6	%			2.2
ST. REGIS/LUXURY COLLECTION
REVPAR ($)			203.70				168.90				20.6	%			209.35				180.80				15.8	%			201.07				163.33				23.1	%
ADR ($)			306.31				274.78				11.5	%			288.87				270.50				6.8	%			315.54				277.06				13.9	%
Occupancy (%)			66.5	%			61.5	%			5.0				72.5	%			66.8	%			5.7				63.7	%			59.0	%			4.7
LE MERIDIEN
REVPAR ($)			133.03				116.47				14.2	%			213.88				189.33				13.0	%			124.06				108.38				14.5	%
ADR ($)			196.23				179.36				9.4	%			245.04				229.94				6.6	%			189.02				172.02				9.9	%
Occupancy (%)			67.8	%			64.9	%			2.9				87.3	%			82.3	%			5.0				65.6	%			63.0	%			2.6
W
REVPAR ($)			213.17				182.31				16.9	%			203.61				179.27				13.6	%			246.50				192.91				27.8	%
ADR ($)			269.72				245.19				10.0	%			254.85				237.34				7.4	%			324.13				274.61				18.0	%
Occupancy (%)			79.0	%			74.4	%			4.6				79.9	%			75.5	%			4.4				76.0	%			70.2	%			5.8
FOUR POINTS
REVPAR ($)			78.84				70.37				12.0	%			75.86				69.79				8.7	%			84.23				71.44				17.9	%
ADR ($)			113.08				106.04				6.6	%			107.14				102.34				4.7	%			124.35				113.28				9.8	%
Occupancy (%)			69.7	%			66.4	%			3.3				70.8	%			68.2	%			2.6				67.7	%			63.1	%			4.6
ALOFT
REVPAR ($)			74.10				63.56				16.6	%			75.86				65.38				16.0	%
ADR ($)			102.41				100.47				1.9	%			104.01				100.73				3.3	%
Occupancy (%)			72.4	%			63.3	%			9.1				72.9	%			64.9	%			8.0