GOVERNOR RELL: STARWOOD HOTELS & RESORTS TO RELOCATE TO GLOBAL HEADQUARTERS TO STAMFORD

Company Moving to Stamford's Historic Waterfront; Move Brings $40 Million Investment, Over 800 Jobs to Connecticut

NOVEMBER 18, 2009 -- Governor M. Jodi Rell today announced that Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) will relocate its global corporate headquarters to Stamford, bringing millions of dollars in investments and 800 jobs to the state.

"For months I have worked with Starwood executives and my economic development team to make this deal -- and the jobs and investments it brings -- a reality for the people of our state, "Governor Rell said. "I am thrilled to see a company of Starwood's stature make the business decision to move here and invest here. It is a triumph for Connecticut -- and it speaks volumes about what our state has to offer businesses.

"This project exemplifies the economic development philosophies I have championed, "the Governor said. "Not only does it add to the state's employment base, it is a responsible and environmentally sensitive use of an existing structure in the heart of a downtown district with access to Interstate 95 and the Metro-North commuter rail line. New jobs, open space preservation, transit-oriented development, 'green buildings' -- all of these goals are embodied in this one project."

The company's move from White Plains, New York, to Stamford's waterfront Harbor Point development is planned for January 2012. Harbor Point is already home to major employers such as Pitney Bowes and Deloitte & Touche. The company's new headquarters will be certified under the "LEED" (Leadership in Energy and Environmental Design) standards program.

Starwood Hotels & Resorts is one of the world's leading hotel and leisure companies, with 982 hotels in nearly 100 countries and nine renowned brands including Sheraton, Westin, St. Regis and W Hotels. Plans call for Starwood to partner with the landlord to invest $40 million into renovating the existing facility.

The company, which plans to occupy 250,000 square feet of space by January 2012, will create more than 800 full-time Connecticut-based positions within two years. Newmark Knight Frank's Neal Golden, Ross Perlman and John Goodkind represented Starwood Hotels in the transaction.

"After an extensive search for new office space for our worldwide headquarters, it became clear that this particular space in Stamford was an ideal choice," said Frits van Paasschen, President and CEO of Starwood. "Not only did the State of Connecticut provide meaningful incentives that translate to a savings of 20 percent per year in rent, but we will also have the opportunity to design office space that reflects Starwood's leadership in global hospitality, design and brand-building, as well as our commitment to the environment and our communities."

The Department of Economic and Community Development will assist the project with a $9.5 million loan and up to $75 million in Urban and Industrial Site Reinvestment Tax Credits. In addition, Starwood expects to receive up to $5 million in sales tax exemptions on building materials through the Connecticut Development Authority. The exemption is subject to approval by CDA's Board of Directors.

"Starwood's decision to relocate its headquarters to Harbor Point validates our decision to invest in the redevelopment of Stamford's South End as an ideal 'smart-growth' community," said Carl R. Kuehner, President and CEO of Building and Land Technology. "These kinds of developments have been at the top of Governor Rell's agenda and we very much appreciate the efforts of state and local officials who worked with us to make this happen."