Sheraton Carlsbad Resort Breaks Ground

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. October 14, 2008

WHITE PLAINS, NY, November 10, 2006. Grand Pacific Resorts, Inc. and Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) announce the beginning of construction of the Sheraton Carlsbad Resort. Situated on 15 acres at the crossroads of Carlsbad's tourism and business districts, the Sheraton Carlsbad will be approximately thirty minutes north of San Diego and one hour south of Anaheim. The resort is scheduled to open its first phase in late 2007 which will include 250 guest rooms, including 13 suites, and 25,000 square feet of meeting and conference facilities. Another 100 additional guest rooms will be added in subsequent phases. The resort is owned and managed by Grand Pacific Resorts and will fly the Sheraton flag under a long-term license agreement.

Directly adjacent to the resort is the popular Legoland theme park, which will be linked to the hotel by a direct pedestrian walkway. The City of Carlsbad 18-hole championship golf course, which opens in 2007, is steps away from the property, with a nearby charming historic village and family-oriented beaches with world-renowned surf. Also within easy reach are the headquarters and operations of major national and international companies such as ViaSat, DJO, Graham Webb International, Invitrogen, Buffini & Co, and others.

"The upscale comforts of the Sheraton Carlsbad Resort will be enjoyed by leisure, family and business travelers from around the world and will ensure that guests have the ultimate experience while enjoying all that the region has to offer," said Co-President Tim Stripe of Grand Pacific Resorts, Inc., owners and developers of the Sheraton Carlsbad Resort.

All guest rooms will be furnished in Sheraton's own chic "Riverside" design featuring a color palette of warm, rich, creamy tones and textures, subdued Damask patterns mixed with faded florals and highly polished honey-colored woods. All guest rooms will feature Sheraton's signature Sweet Sleeper(R) Bed, known for its plush top mattress, down pillows, crisp sheets and plump duvets. Additional guest room features include an expansive work area, wireless Internet, Cable TV and 32-inch LCD TV's.

"The Sheraton Carlsbad Resort is an exciting addition to Sheraton's growing portfolio," said Chad Waetzig, senior vice president of marketing for Sheraton Hotels. "Coastal San Diego North is an especially desirable destination because of the natural beauty of the ocean, unique lagoons and its proximity to businesses, entertainment and upscale retail shopping which are a perfect complement to the Sheraton brand key attributes of warm, comforting connections."

Other convenient guest amenities will include a 5,200-square-foot destination restaurant that features an ocean view and terrace for outdoor patio dining; sports facilities including tennis courts, half-court basketball, fitness center and gym; health spa with 8 private treatment rooms; and an Olympic-size swimming pool for adults plus an adventure pool with water play equipment for children.