The Luxury Collection Announces Sixth Property in Greece

Mystique in Santorini

. October 14, 2008

WHITE PLAINS, NY, January 15, 2007. Starwood Hotels & Resorts Worldwide Inc. (NYSE:HOT) announced today its latest addition to The Luxury Collection(R), the exclusive Mystique hotel, located in Santorini, Greece, under a long-term agreement with Greek property owner, Kanava SA. The hotel, perched high on the cliffs of Oia, Santorini, is expected to open its doors in May of 2007.

With its awe-inspiring natural wonders and luminous sunsets, Santorini is considered by many to be one of the most spectacular of the Greek islands. Catering to the most discerning travellers, Mystique will offer unparalleled luxury in an exquisite setting. The hotel's cliff-top location offers sweeping views of the clear-blue equatorial waters and dramatic vistas of the Aegean Caldera, a breathtaking sea-filled crater created by a collapsing volcano. Visitors can sail into the six-mile wide, sunken caldera, which still smoulders with volcanic activity, to view the dizzying cliffs and picturesque, whitewashed villages hugging its rim. The Megaron Gyzi Museum, housed in a beautiful 17th century mansion, is a popular stopping-point for travellers curious to learn more about the island's dramatic past, including the cataclysmic volcanic eruption of 1640 BC that created the island.

"We are very excited to be associated with a hotel as extraordinary as Mystique as part of The Luxury Collection's ongoing strategy to provide the unique qualities of an independent hotel with the assurance and rewards of a global hotel brand," said Roeland Vos, President, Starwood Hotels & Resorts, Europe Africa & The Middle East. "Santorini is both an exciting and exotic destination, and this property has the potential to be one of the best hotels in Europe."

Attractions in Santorini include the traditional settlement of Oia, located at the northernmost point of Santorini, high up on the cliff, as well as the peaceful town of Oia. Directly below the hotel is the beach of Ammoudi, offering views of the Burnt Islands across the bay. A twenty minute drive will take visitors to Thira, the island's main town, packed with quaint shops and lively restaurants. Mystique offers convenient access to two transportation hubs, as it is just 11 miles from Santorini Airport and 12 miles from Athinios Port.

Mystique features 18 villas, carved into the cliff, with panoramic private terraces and unrivalled views of the ocean. The rooms combine tradition with modern conveniences: furnishings are lovingly handcrafted from materials including wood, local stone, glass and antique textiles, and guests will also enjoy flat screen televisions, wireless internet connections and CD players with surround sound. Guests will luxuriate in the villa's whirlpool bathtubs and enjoy personal services including aromatherapy and private massages.

Mystique's amenities include an outdoor infinity pool at the cliff's edge, the poolside Aura terrace bar and the Secret wine cave, a dramatic wine cellar serving rare and indigenous vintages. At Charisma, Mystique's gourmet restaurant, the chef uses only the freshest ingredients to season entrees with regional flavour. Guests seeking an intimate and dramatic setting for their nuptials can arrange to use the hotel's own chapel.

"The Luxury Collection is the perfect brand for Mystique and an ideal partner, with a strong presence in Greece and a proven track record," said Antonis Eliopoulos, Owner and CEO of Kanava SA. "Mystique will benefit from The Luxury Collection's expertise in luxury properties as has its sister property, Vedema Resort."

In addition to Mystique and Vedema Resort in Santorini, there are four other Luxury Collection hotels in Greece, including, Hotel Grande Bretagne and Hotel Arion in Athens, Santa Marina in Mykonos and Blue Palace on the island of Crete. For further information visit www.luxurycollection.com .

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