Contacts:Jay Sapsford
Corporate Communications
Morgan Stanley+81 3 5424 5015

Hwee Peng Yeo
Corporate Communications
Starwood+65 6335 4837

For Immediate Release

STARWOOD HOTELS AND MORGAN STANLEY REAL ESTATE
ANNOUNCE JOINT VENTURE AGREEMENT TO ACQUIRESHERATON GRANDE TOKYO BAY HOTEL
Singapore, February 23, 2007 – Starwood Hotels & Resorts Worldwide, Inc.®
(NYSE: HOT) and a fund managed by Morgan Stanley Real Estate have entered into adefinitive joint venture agreement to acquire the Sheraton® Grande Tokyo Bay Hotelfrom Taisei Corporation Group, with a closing of the acquisition expected before theend of March 2007. The fund, managed by Morgan Stanley Real Estate, will own
approximately 75% of the joint venture and Starwood will own approximately 25%.

The 802-room Sheraton Grande Tokyo Bay has been managed by Starwood® since its
opening in 1988 and will continue to be operated by Starwood under a long-term
management agreement with the joint venture.

The Sheraton Grande Tokyo Bay is located in the Tokyo Disney Resort area and offers
guests direct access to Disney via monorail. One of the five official Tokyo Disneyhotels, the Sheraton Grande Tokyo Bay offers sweeping views of Tokyo Bay and Tokyo
Disneyland. The hotel is a leading wedding facility in Japan, with two chapels and 13
event rooms. Other amenities include eight restaurants, the Oasis sport and recreation
complex, indoor and outdoor pools.

The number of visitors to the popular Tokyo Disney Resort area is anticipated to growin the next few years as a result of the construction of a new 2,000-seat theater for theworld-renowned Cirque du Soleil, as well as celebrations and events for Tokyo Sea
Disney’s fifth anniversary and Tokyo Disneyland’s twenty-fifth anniversary.

About Starwood Hotels & Resorts Worldwide, Inc.
Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisurecompanies in the world with approximately 850 properties in more than 95 countries
and 145,000 employees at its owned and managed properties. Starwood® Hotels is afully integrated owner, operator and franchisor of hotels and resorts with the followinginternationally renowned brands: St. Regis®, The Luxury Collection®, Sheraton®,
Westin®, Four Points® by Sheraton, W®, Le Méridien® and the recently announced
AloftSM and ElementSM Hotels. Starwood Hotels also owns Starwood Vacation
Ownership, Inc., one of the premier developers and operators of high quality vacationinterval ownership resorts. For more information, please visit www.starwoodhotels.com.

About Morgan Stanley Real Estate
Morgan Stanley Real Estate is comprised of three major global businesses: Investing,
Banking and Lending. Since 1991, Morgan Stanley has acquired $102.0 billion of realestate assets worldwide and currently manages $60.5 billion in real estate assets onbehalf of its clients. In addition, Morgan Stanley Real Estate provides a complete rangeof market-leading investment banking services to its clients, including advice on
strategy, mergers, acquisitions and restructurings, as well as underwriting public andprivate debt and equity financings. Morgan Stanley is also a global leader in real estate
lending offering approximately $156.0 billion of CMBS through the capital markets
since 1997, including $35.5 billion in 2006. For more information about Morgan
Stanley Real Estate, go to www.morganstanley.com/realestate.

About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide range ofinvestment banking, securities, investment management, wealth management and credit
services. The Firm's employees serve clients worldwide including corporations,
governments, institutions and individuals from more than 600 offices in 30 countries.
For further information about Morgan Stanley, please visit www.morganstanley.com.
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Note: This press release contains forward-looking statements within the meaning of UnitedStates federal securities regulations. Forward-looking statements are not guarantees of future
performance or events and involve risks and uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated at the time the forwardlooking statements are made. These risks and uncertainties are presented in detail in our filings
with the Securities and Exchange Commission. Although we believe the expectations reflected insuch forward-looking statements are based upon reasonable assumptions, we can give noassurance that our expectations will be attained or that results and events will not materiallydiffer. We undertake no obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.

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