Le Meridien Hotel to Anchor New Arizona Development; Established European Hotel Brand Joins a Cadre of Innovative, International Corporate Tenants Including KPMG, Smith Barney, T.Y. Lin, and Regus/HQ

Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) and SunCorDevelopment Company announced today that a Le Meridien hotel is thelatest addition to the stylish, mixed-use, master-planned project,Hayden Ferry Lakeside, in Tempe, Arizona. Le Meridien at Tempe TownLake is the brand's first new build property since it was acquired byStarwood in November of 2005, and follows the May 2006 opening of LeMeridien San Francisco. The brand is on an aggressive global growthpath, particularly in the U.S., Asia-Pacific and Latin America.

Le Meridien is recognized by global travelers for its style,originality and passion for art, architecture, food, fashion, musicand film. The 183-room, 14-story contemporary styled hotel with aEuropean flair will offer to worldly travelers a culturally-rich andsophisticated accommodation in Tempe, a highly popular downtowndistrict in the greater Phoenix area. The hotel is bordered by the220-acre Tempe Town Lake and picturesque Hayden's Butte, and islocated ten minutes from Sky Harbor International Airport.

In addition to the hotel, 44 residential units will be built atopthe property and will enjoy the internationally acclaimed services andamenities afforded to Le Meridien guests, along with magnificent lakeviews. There also are four other SunCor condominium buildings in theHayden Ferry Lakeside development, all of which may have access tosome of the hotel amenities.

Le Meridien joins an innovative, forward-looking cadre ofcorporate tenants including KPMG, Smith Barney, T. Y. Lin, Regus/HQand MedAire as well as SunCor. Tenants in the vicinity include U.S.Airways, and Monster International. When complete the Hayden FerryLakeside master-planned development will include the hotel,approximately 350 condominiums, three high-rise office buildings, andretail components including a spa/fitness club and myriad high-endrestaurants.

"As we aggressively expand our footprint around the globe,particularly here in the United States, we search for communitiesthat, like Le Meridien, embrace culture and creativity," said EvaZiegler, Senior Vice President, Le Meridien Brand. "With the energy ofArizona State University, its sophisticated, international corporatepresence, and thriving downtown, Tempe is a very desirable location.This project's unique design concept perfectly complements thepreferences and desires of our guests."

The Hayden Ferry Lakeside project is part of the master-plannedTempe Town Lake, an extensive landscape comprising of water and parkspace that frames Tempe Beach Park, originally built in 1931. The parkconnects to five miles of picturesque bike and jogging paths, andboating concessions. The area plays host to open-air concerts andholiday celebrations throughout the year. The Tempe Town Lake isArizona's second largest tourist attraction.

A joint venture among Valhalla Development Corporation, SierraHospitality, and Adobe Development Partners who together compriseTempe Lake Development Partners, the new hotel will be operated byAPMC, an approved Starwood Operator. The international hotel designerBent Severin Design (Westin Tokyo, Sheraton Bahrain and SheratonWarsaw) and highly acclaimed hotel architects Callison Group ofSeattle have been selected with an urban design in mind.

"Le Meridien's European sensibility, style and sophistication areall highly desirable, even in a market that already boasts some of theworld's finest accommodations," said SunCor President & CEO SteveBetts. "With the power of Starwood, the brand brings with itoperational excellence, cutting edge technology, and an existingglobal customer base."

With 13 hotels in Arizona and 10 hotels in the greater-Phoenixarea, plus 3 more under development, Starwood is a vital player in thearea's tourism industry. Its famed properties in the region includeThe Phoenician, the Westin Kierland Resort & Spa, the Sheraton WildHorse Pass Resort & Spa, and the soon-to-open W Scottsdale and WPhoenix.

Originating in Paris, Le Meridien epitomizes European serviceculture, with a commitment to offering guests a truly authenticexperience, respecting local culture and appealing to the curious andprogressive guest. With more than 120 properties in 52 differentcountries, almost 70 percent of the Le Meridien properties are locatedin Europe, Asia-Pacific, Africa and the Middle East with an aggressivegrowth plan in North American and Asia-Pacific currently underway.

About Valhalla Development Corporation

Led by President and CEO Tod Decker, The Valhalla DevelopmentGroup (VDG) was founded with the philosophy of building long-termvalue by designing, developing and managing exclusive commercial realestate projects. VDG's primary focus is the creation and developmentof mixed-use "live, work, play" urban village environments in thewestern United States.

About Sierra Hospitality

Sierra Hospitality and our sister companies Sierra Financial andSierra Homes has been an active developers in the Valley for the past15 years. Completed projects include Sierra Hills in Scottsdale.Sierra Hospitality is focused on the development of mixed usehotel/resort and residential projects with an emphasis on quality andservice. Sierra Hospitality is an investor, in the Hotel La Jolla, aprestigious hotel in La Jolla California managed by our strategicalliance partner American Property Management.

About Adobe Development Partners

Adobe Real Estate Development LLC, founded in 2003 by Paul Winslowand Olivier Severin, has grown from development projects based inArizona to California, Trinidad & Tobago and other countriesworldwide. ARED prides itself on developing projects that suit theeconomy's current and future needs and demands. With its strongbackground in design excellence from medical, hospitality,residential, commercial, institutional; and industrial; ARED placesforefront designs and ideas to use, in order to secure itsdevelopments' success in the marketplace. "We develop today fortomorrow's future".

About Starwood Hotels & Resorts

Starwood Hotels & Resorts Worldwide, Inc. is one of the leadinghotel and leisure companies in the world with more than 850 propertiesin more than 95 countries and 145,000 employees at its owned andmanaged properties. Starwood(R) Hotels is a fully integrated owner,operator and franchisor of hotels and resorts with the followinginternationally renowned brands: St. Regis(R), The LuxuryCollection(R), Sheraton(R), Westin(R), Four Points(R) by Sheraton,W(R), Le Meridien(R) and the recently announced Aloft(SM). StarwoodHotels also owns Starwood Vacation Ownership, Inc., one of the premierdevelopers and operators of high quality vacation interval ownershipresorts. For more information, please visit www.starwoodhotels.com.

About SunCor

SunCor is one of the Southwest's premier developers, providingexceptional, meticulously planned environments. It is known fordeveloping integrated communities that protect the beauty of natureand offer superior places to live, work, and play. SunCor is a whollyowned subsidiary of Pinnacle West Capital Corporation, a publiclytraded company (NYSE: PNW). Pinnacle West Capital Corporation is alsothe holding company for Arizona Public Service, Arizona's largestelectric utility. For more information, please visit www.suncoraz.com.

(Note: This press release contains forward-looking statementswithin the meaning of federal securities regulations. Forward-lookingstatements are not guarantees of future performance or events andinvolve risks and uncertainties and other factors that may causeactual results or events to differ materially from those anticipatedat the time the forward-looking statements are made. These risks anduncertainties are presented in detail in our filings with theSecurities and Exchange Commission. Although we believe theexpectations reflected in such forward-looking statements are basedupon reasonable assumptions, we can give no assurance that ourexpectations will be attained or that results and events will notmaterially differ. We undertake no obligation to publicly update orrevise any forward-looking statement, whether as a result of newinformation, future events or otherwise.)