Timeshare Overview

March 6, 2008

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These presentations contain forward-looking statements within the meaning of federal securities regulations. These forward-looking 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.

Safe Harbor Statement

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Agenda

• Industry Overview

• Starwood Overview

• Timeshare Project Overview

• Development Update

• Conslusions

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Industry Overview

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Regatz: Resort Timesharing in the USConfrence Board Publication: The Road to Affluence 2010RCI: Resort Timeshare Worldwide

Timeshare Industry Strength

• In 2005 and 2006, the Vacation Ownership industry continued to have rapid growth and positive demographic trends

• 16% Sales CAGR since 1993

• Worldwide sales of $14B in 2006, with US sales over $10B

• Penetration rates remain low among qualified consumers (~7%)

• Target consumer base growing 30%+ over next ten years

• Purchasing power of target consumers increasing 35%

• High owner satisfaction rates

• Owner base becomes brand loyal through great vacation experiences

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1/ Bear & Stearns Equity Research (Extrapolated Estimates for 2003 & 2005), PWC data for 20062/ ARDA 2006 State of Vacation Timeshare Industry, Bear & Stearns Equity Research, PWC data for 20063/ Smith Travel Research (2005 & 2006 estimate based on extrapolation of reported room revenue)

Timeshare Industry Growth

• Timeshare sales continue to deliver each year• US Timeshare industry revenue growing at 16% CAGR

$14.0

$12.3$11.0

$10.3$9.4$8.6

$7.7$6.7

$6.1$5.7$5.3$5.1$4.8$4.5

$10.5

$9.0

$1.5 $1.7 $1.9 $2.2 $2.7$3.2 $3.7

$4.2$4.8

$5.5$6.5

$7.9

$134$124

$105$103$104

$64 $67 $70 $77 $86 $93 $103 $112 $114

$0

$2

$4

$6

$8

$10

$12

$14

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06$50

$100

$150

$200

$250

$300

$350

US Timeshare Revenue ($B) 2/

US Lodging Revenue ($B) 3/

Worldwide Timeshare Revenue ($B) 1/2/

6%US Lodging9%Worldwide TS

16%US TimeshareCAGRMarket

Consistent and Dramatic Growth in Timeshare Industry Since 1993

Consistent and Dramatic Growth in Timeshare Industry Since 1993

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Timeshare Industry Economic Impact

• Economic impact of the Timeshare Industry on the US economy was estimated at $91.8B* in 2005 and is driven by three forces:

1. Direct owner driven economic impact of $31B• $23B was driven by the timeshare operation and includes:

• Resort Operations of $10B• Purchases of timeshare of $9B• Maintenance fees of $4B

• $8B in additional owner driven economic impact including construction, resort employment and other direct vacation related purchases

2. Indirect economic activity impact of $52B includes:• Indirect employment impact of $13B• Other activity of $39B

3. Tax revenues of $8B are also generated from this activity• Includes timeshare employee taxes, property and occupancy taxes and taxes on

activities in other industries

*Source: PWC Economic Impact of Timeshare Industry, 2006 Edition; data available rounded to $billions

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Key US Timeshare Industry Ratios

• Overall industry margins are driven by public companies who enjoy broader distribution systems and well positioned brands which drive higher price points

51%41%44%Sales & Marketing Costs

% of Originated Sales

16%

1%

6%

9%

27%

Public Companies

12%

2%

8%

9%

25%

All US Timeshare Companies

Private Companies

13%Estimated Uncollectable Sales

2%Originated Pre-Tax Margin

4%HOA Subsidies

8%General & Administrative

22%Product Costs

Source: PWC Financial Performance Survey – 2007, 2006 Data

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Starwood Overview

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• Operating strategy remains focused on developing and executing the mixed-use model to create value by leveraging:

Hotels, amenity infrastructures and land holdings

Resort management infrastructure and operating costs

Marketing spend (room nights and customer incentives) internally

Starwood brands

SVO distribution capabilities within proven markets

• Support and enhance Starwood relationships with existing and prospective owners for new hotel opportunities

• Create positive system impact through incremental brand marketing

• Create a valuable customer base of brand loyal, highly satisfied owners

Starwood Timeshare Operating Strategy

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Starwood Competitive Advantages

• Continued use of multiple brands – Sheraton, Westin and St. Regis

• Focused on profitable business segments in the US, Caribbean and Mexico where we can operate with more efficient sales and marketing costs

• Pricing premiums in common markets over competitors

• Combination of scale, multiple brands and price points, and efficient distribution model yields superior results

• Inventory and projects to support growth objectives over the next three years is more than 90% identified and owned today

• Predominantly mixed use model leverages resort assets

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Hotels SVO

LeverageResources

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

• 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 Hotels

Benefits to Timeshare

Starwood Mixed Use Strategy Synergies

• Incremental system value synergies realized by aligning Timeshare & Hotel assets closely

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Starwood Brands

• Product portfolio well balanced and addresses the needs of a vast demographic audience

~$400,000~$36,300~$13,700Average 2007 Contract Amount

>$150k35-74$1M+

>$75k35-64

$150k - $1M

>$50k35-54

$75k - $750k

Target CustomerHousehold Income

AgeNet Worth

$176K - $760K/Fraction

$15K - $114K/Week

$8K - $53K/WeekPrice Range 2/

9%61%30%% of Total 2007 Contract Sales 1/

(originated sales)

1/ Excluding Harborside at Atlantis2/ Price ranges based on annual products and of resorts in sales during 2007

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Starwood Vacation Ownership Overview

• Over 200,000 unique owners– ~16% of owners have purchased more than one week

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5

3

12

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Total Resorts

32213Unbranded & JV

4,7811617Total

6932

1,32265

3,06866

# Units 1/Resorts in Active

SalesResorts in Operation

1/ Includes existing units and/or in active pre-sales / development

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Financial Performance

• Starwood Vacation Ownership & Residential Delivers Best in Class Financial Results– 2007 results were down because of the decision to defer a receivable sale

Op. Income CAGRSVO = 24%

HGVC = 23% (2006)MVCI = 20%

Op. Income CAGRSVO = 24%

HGVC = 23% (2006)MVCI = 20%

25%

26%28%

25%

27%

12%

14%16%

15% 15%

23%24% 24% 23%

10%

15%

20%

25%

30%

35%

2003 2004 2005 2006 2007

Operating Income Margin

SVO/RES

MVCI

Source: Information was obtained or calculated from the respective segment disclosures in the most recent 10-K reports, with SVO’s revenues excluding any VOI condo recovery gross-up (from SVO management reports).

109164

253268 257

306280271

203

149

152129

9982

$0

$100

$200

$300

2003 2004 2005 2006 2007

Operating Income

SVO/RES

MVCI

Total Revenue CAGRSVO = 24%

HGVC = 24% (2006)MVCI = 13%

Total Revenue CAGRSVO = 24%

HGVC = 24% (2006)MVCI = 13% 439

640

8891,005 1,025

2,0651,840

1,502

1,279

1,721

650554

421345$0

$500

$1,000

$1,500

$2,000

2003 2004 2005 2006 2007

Total Revenues MVCI

SVO/RES

HGVC

HGVC

HGVC

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Operating Income Distribution

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

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

– Interest Income– Gain on Sale of Receivables– Retained Interest Amortization

• 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

Timeshare Sales

67%

2007 Operating Income Distribution 1/

Financing Income

22%

Resort Income

7%

JV Equity Earnings

4%

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

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Starwood Originated Sales Growth

• Originated sales CAGR of 19% between 2001 & 2007• Revenue growth trends experience some variability due to the nature of the business model• 2007 Originated Sales were down slightly due primarily to declining close rates in Hawaii as

the Westin Ka’anapali Ocean Resort North neared sell out

1/ Originated sales includes Timeshare and Fractional sales, excludes JV’s

Originated Sales ($M) 1/

$714$739

$581$507

$358$290

$249

$0

$200

$400

$600

$800

2001 2002 2003 2004 2005 2006 2007

Yr/Yr Chg 17% 23% 42% 15% 27% (3%)

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Key Financing Metrics

• Average original loan amount is $19,300

• Average FICO score 705

• Average down payment 14%

• Weighted average interest rate 12.2%

• Total portfolio is approximately $850M, includes loans that have been securitized by SVO– $569M Timeshare and Fractional on balance sheet at 12/31/07– $285M in off balance sheet securitizations

• Total annual delinquency including defaults remains below 6%, up just slightly from all time lows in 2006

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Timeshare Project Overview

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Timeshare Project Lifecycle

• A project typically has several important phases during it’s lifecycle• Feasibility / Investigation: This is the first step in evaluating a project for potential financial returns and includes

inputs from Construction, Sales and Finance.

• Executive Review / Approval: Projects that pass the feasibility test are then presented to Starwood Executives and Board of Directors for review and approval.

• Development / Construction: Begins with preparing detailed project specifications and working with local governments to ensure proper due diligence has been completed. Once local approvals have been received construction begins.

• Sales Start: Pre opening sales can begin as much as 24 months before resort completion.

• Resort Activity: Resort officially opens, and the Starwood Resort Operations team begins servicing owners, managing the property, coordinating renters, collecting dues

Feasibility / Investigation

Site Identification

Scope Estimation

Cost Estimation

Project Underwriting

Finance Committee Review

Detailed Project Specs

Local Government Review

Construction Begins

Sales Center Developed

Development / Construction Resort Activity

Construction Completed

Resort Opening

Resort Management

Sell Out in 2 – 15 years

Approval

Starwood Board of Directors Review

Sales Start

Up to 24 months before

completion

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Evaluating a Vacation Ownership Project

• A typical vacation ownership project has three distinct phases of review

Initial request for

underwriting –(Model

Initiation form )

Construction(Master Budget ,

Schedule , Massing , Program )

Sales & Marketing

&

Consumer Profile(financing )

Resort

Starwood Economics

• Construction cash flow modelOutputs: Construction expenditure, escalation, cost of sales, percentage of completion

• Pricing modelOutputs: price by unit type, view, season, biennials, splits, and contract pricing

• Channel distribution modelSales and S&M costs by channel, e.g. preview packages, integration, OTCRoom block requirement

• Resort modelOutputs: resort economics, HOA fee estimate

• Incremental modelOutputs: incremental economics to hotel due to SVO presence

• Timeshare modelOutputs: overall economics, receivables sales, returns

Modeling Data Gathering Economics

• After-Tax Unlevered IRRRanges from 11% - 40%+

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Originated Earnings

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Financing Earnings

Resort Earnings

Timeshare Sales Earnings

Hypothetical Timeshare Project ExampleOriginated Earnings• This hypothetical example of earning streams of a timeshare project at a new location

– ~160 2 bedroom lock off units built in two equal 80 unit phases– Sell out occurs over 7 years– Typical cost rates:

• Sales & Marketing 30% - 40%• Product Costs 25% - 35%• G&A 5% - 8%

46%27% 29%56%51%41%28%26%29%23%(33%)Pre-Tax

Originated Margins (Hypothetical) Total

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Hypothetical Timeshare Project ExampleGAAP Earnings

• Percentage of completion accounting materially impacts GAAP results– Reduces early year margins (Y1 & Y2)– Increases Y3 margin

GAAP Earnings

Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10

Financing Earnings

Resort Earnings

Timeshare Sales Earnings

46%56% 29%51%41%28%26%27%37%(17%)(64%)Pre-Tax

GAAP Margins (Hypothetical)

Phase 1 Complete

Phase 2 Complete

Total

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Development Update

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1) Lockoff units are considered as one unit for this analysis

2) Includes resorts in operation, or active sales

3) Completed units include those units that have a certificate of occupancy.

4) Units in Pre-sales/Development are in various stages of development (including the permitting stage), most of which are currently being offered for sale to customers.

5) Based on owned land and average density in existing marketplaces

6) Future units indicated above include planned timeshare units on land held for development by the Company or applicable UJV. There can 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.

7) Assumes 52 intervals per unit.

Starwood Inventory Pipeline

• Summary of existing and future inventory pipeline

# ResortsIn In Active Pre-sales/ Future Total at

Brand Total (2) Operations Sales Completed (3) Development (4) Capacity (5),(6) Buildout

Sheraton 8 6 6 2,711 357 1,424 4,492 Westin 12 5 6 1,121 201 1,164 2,486 St. Regis 2 2 2 51 12 - 63 The Luxury Collection 1 - 1 - 6 6 12 Unbranded 3 3 - 124 - 1 125 Total SVO, Inc. 26 16 15 4,007 576 2,595 7,178

Unconsolidated Joint Ventures (UJV's) 2 1 1 198 - 40 238 Total including UJV's 28 17 16 4,205 576 2,635 7,416

Total Intervals Including UJV's (7) 218,660 29,952 137,020 385,632

# of Units (1)

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New Resorts

Westin Lagunamar Ocean Resort296 Units

Cancun, MexicoOpening Mid 2008

Sheraton Steamboat45 Units

Steamboat Springs, ColoradoOpening Late 2008

Westin Ka’anapali North Ocean Resort (sequel project)296 Units

Maui, HawaiiOpened Mid 2007

Westin Princeville Ocean Resort179 Units

Kauai, HawaiiOpening Mid 2008

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Growth at Existing Resorts

615 Units Completed287 Units under construction – Opening 2009 – 2010

Future Capacity of ~553 Units

272 Units Completed70 Units under construction – Opening 2009 – 2010

Future Capacity of ~160 Units

106 Units Completed40 Units under construction – Opening Mid 2008

Future Capacity of ~120 Units

198 Units Completed~300 Units to begin construction in 2008

Sequel project

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Projects Currently Under Development

Westin Riverfront113 Units

Selling Early 2008

Westin Desert Willow300 Units

Selling Late 2007

Westin Los Cabos64 Units

Selling Late 2008

St. Regis Punta Mita~40 Fractional Units

Selling Late 2008

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Future Development

Sheraton Kauai Ocean Resort~365 Units

Status: Owned & Entitlement Approved

Westin Ka’anapali Ocean Resort III (sequel)~390 Units

Status: Owned & Entitlement Pending

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Conclusions

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Conclusions

• Loyalize customers with a strong brand connection

• Generate premium margins

• Provide visible growth and less cyclicality

• Create substantial earnings from its owner base & resorts – both short term and long term

• Generate highly satisfied customers at the resort experience level

• Create strong system economics within the timeshare model and the hotel income statements

• Overall brand enhancement through marketing efforts

Starwood’s entry into Vacation Ownership has proven strategically successful, leveraging assets. Results to date have been exceptional – continuing growth

opportunities are substantial. This successful brand extension will continue to: