WHITE PLAINS, NY, March 18, 2008. Starwood Vacation Ownership (SVO), the fractional and vacation ownership division of Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), has expanded its fractional ownership portfolio with the opening of The Phoenician Residences, The Luxury Collection Residence Club, Scottsdale (The Phoenician Residences). Located on the grounds of Starwood's famed The Phoenician(R) resort -- a AAA Five Diamond property situated at the base of Camelback Mountain in the Valley of the Sun -- the residences feature accommodations of uncommon beauty and style, as well as an enticing array of amenities and recreational opportunities.

The Phoenician Residences offer guests a luxurious ownership opportunity at Arizona's premier 250-acre resort destination. Through a major renovation effort, The Phoenician villa complex has been transformed into a fractional ownership community. Unique two- and three-bedroom floor plans, ranging from 1,400 to 2,400 square feet, are currently available. Select features offered include imported Irish linens, rich hardwood floors, a natural stone fireplace, a private plunge pool and spa, an outdoor summer kitchen with gas grill and LCD televisions.

Sales of The Phoenician Residences have begun, with membership prices for fractional interests ranging from $150,000 to $400,000, depending on the specific floor plan, location, and weeks selected. Initially consisting of seven exquisite units, another five units are scheduled to be added in the future.

"As a premier destination, The Phoenician(R) is a perennial favorite of sophisticated vacationers, and we are extremely excited to offer ownership opportunities through The Phoenician Residences, our first fractional resort under The Luxury Collection brand," said Matt Avril, president and managing director of operations, Starwood Vacation Ownership, Inc. "This newest offering in our portfolio of fractional resorts is the perfect complement to the St. Regis Residence Club properties in Aspen and New York."

Bringing unparalleled flexibility to the luxury fractional market, The Phoenician Residences allow members to purchase a three-week Club Interest with two fixed weeks during peak seasons, and one floating week during the summer. Members also have the ability to convert up to two ownership weeks per year into Starwood Preferred Guest(R) (SPG) Starpoints(R), which can then be redeemed for stays at approximately 900 Starwood properties worldwide with no blackout dates. In addition, the internal exchange component provides members with the option of exchanging a maximum of two eligible weeks for stays at other Residence Club properties. All members automatically become Platinum Level SPG(SM) members and enjoy a host of Platinum benefits, including automatic upgrades, and complimentary access to hotel health clubs and Club Levels.

The Phoenician(R) resort offers a variety of luxurious amenities and diverse programs to entice even the most seasoned traveler. Members and their guests will enjoy access to all of the property's recreational and dining outlets. A sports enthusiast's paradise, The Phoenician(R) boasts a USGA championship golf complex comprised of three distinctive nine-hole courses, chipping and putting greens and a driving range, along with such services as private and group lessons and video swing analysis. The Tennis Garden offers 12 lighted courts, including a practice court with "Matchmate" automated ball serving machine. The facility's four unique playing surfaces feature the signature Wimbledon grass court, and the revolutionary Rebound Ace from Australia. Nine sparkling swimming pools, along with a 165-foot water slide and private cabanas, create a true oasis in the Sonoran desert.

Members and guests can also relax in a moment of peaceful reflection at The Centre for Well-Being(R) spa. Personalized spa programs, services and treatments, plus fitness classes and workout facilities, combine to offer an array of healthy pursuits. Later this month, The Phoenician(R) will also introduce a self-guided audio tour of its $25 million art collection. The Luxury Collection Residence Club members will also savor the culinary artistry of the resort's nine restaurants, including the Southwestern specialty dishes, artisan tequilas and boutique margaritas of the award-winning Windows on the Green.