St. Regis Announces Ultra-Luxury Resort and Residences at St. Regis Resort, Bahia Beach, Puerto Rico; St. Regis Continues Dynamic Growth with Latest Development

"St. Regis is focused on building the world's most exclusive andluxurious properties in the finest locations around the world. When itopens, the resort will introduce an unrivaled dimension of luxury andbespoke hospitality to Puerto Rico," said Kerry Hatch, President ofSt. Regis. St. Regis Resort, Bahia Beach, Puerto Rico represents the12th property currently under development for St. Regis. On a dynamicgrowth path, the legendary brand is projected to double in size by2009, unveiling ultra-luxury hotels, resorts and residences across theglobe.

Easily accessible from the New York metropolitan area and morethan 20 U.S. gateway cities, the resort will allow guests to escapefor a long weekend, or weeks on end. The majestic St. Regis Resort,Bahia Beach will be built directly along the ocean among toweringcoconut palms and lush tropical foliage and surrounded by a newoceanfront Robert Trent Jones, Jr. golf course. The resort willfeature 150 luxuriously appointed suites, boasting spectacular viewsfrom private open terraces of the sparkling sea to the east or themountainous El Yunque tropical rainforest to the south. In keepingwith St. Regis' unparalleled standards of hospitality, the resort willfeature St. Regis' signature butler service, a world-class Remede Spaand Fitness Center, casual and fine dining restaurants, oceanfrontswimming pools, and concierge.

Bahia Beach is taking shape on 483 acres of pristine coconut palmsand native maritime forest just 16 miles from San Juan InternationalAirport. The community will boast a magnificent two-mile crescent ofsandy beach, a beachfront golf course, world-class golf and beachclubhouses and a charming seaside village.

"Bahia Beach Resort & Golf Club will be a world-class resortcommunity reflecting excellence in land planning, architecture andgolf course design, all surrounded by breathtaking natural beauty,"said Federico J. Sanchez-Ortiz, president of Interlink Group, thedevelopment managers of Bahia Beach. "Bahia Beach will undoubtedly bePuerto Rico's finest resort community, and the preferred destinationin the Caribbean."

Scheduled to open in early 2007, the championship 18-hole BahiaBeach Golf Course designed Robert Trent Jones, Jr. will challengegolfers of all abilities, with thick canopies of native maritimeforest, scenic lakes and ocean breezes. Three stunning finishing holesdirectly along the ocean will offer a memorable finale to each roundof golf. The stately golf clubhouse will include areas for dining andentertaining, as well as a complete selection of golf equipment andsportswear. Troon Golf, the world's leading golf course managementfirm, will operate Bahia Beach Golf Course and clubhouse.

The community's two-mile stretch of sugar-fine sandy beach andgently lapping waves offer postcard-quality beauty and the tranquilityof a private island.

Nature lovers will be delighted by the community's scenic naturetrails, spectacular two-mile shoreline, 80 acres of lakes, tropicalforests of sea grape, almond and flamboyan trees and environmentalchildren's program. The natural splendor of nearby El Yunque NationalRainforest can be explored along the many excellent hiking trailsmaintained by the U.S. Park Service.

BBP Partners, LLC are firmly committed to the principles ofcareful environmental stewardship and are taking major steps to ensureminimal impact on the flora and fauna of the site. Bahia Beach is aregistered member of the Audubon International Silver SignatureProgram working toward designation as a Certified Silver AudubonInternational Signature Sanctuary.

Nestled among coconut palms and flowering flamboyan trees withinwalking distance of most homes will be Bahia Village, a welcoming towncenter of shops, cafes and restaurants where residents and guests canenjoy shopping, dining and entertainment while being caressed by theocean breeze.

Among the lovely residences available for sale are 26 St. RegisEstate Homes exemplifying the luxury and beauty for which the companyis renowned. These homes overlook both the golf course and the ocean.Designed in a tropical plantation architectural style, the homes willrange from 6,000 to 10,000 square feet of total construction area andbe available in six different models, all of which include largeverandas, three-car garages and separate maid quarters. The firstEstate Homes will be completed in 2007.

The charming Las Verandas Villas will include condominiums ofapproximately 1,500 to 3,500 square feet of total construction areaand offer splendid views of El Yunque, golf, forest and lakes. Theproject will feature shady courtyards, private gardens and open greenspaces. The first phase of Las Verandas Villas will be available in2007.

All residences sold within Bahia Beach will include a socialmembership in the private club, providing members with specialprivileges and the highest level of service. Upgrades to full golfclub memberships will also be available.

Bahia Beach is idyllically situated just east of Puerto Rico'scapital city of San Juan. With the recent completion of the Route 66expressway, the community is a relaxing 25-minute drive from SanJuan's Luis Munoz Marin International Airport, which is served by avariety of major airlines worldwide.

Bahia Beach is being created by BBP Partners, LLC, whoseaward-winning principals are resort and residential developersInterlink Group, and office and commercial developers Munoz Holdings,Inc. Together they offer 45 years of experience in real estatedevelopment, project management and construction, and real estatebrokerage of the highest caliber. For more information, please visitwww.interlinkpr.com and www.munozbermudez.com. For more informationabout Bahia Beach Resort & Golf Club, please visitwww.bahiabeachpuertorico.com.

St. Regis Hotels & Resorts includes the most celebrated propertiesin the world. Founded by John Jacob Astor with landmark St. RegisHotel, New York over a century ago, the company will unveil highlyanticipated St. Regis properties in Bora Bora, French Polynesia (2006)Fort Lauderdale (2006), Mexico City (2007), Punta Mita, Mexico (2007),Singapore (2007), Anguilla (2008), Atlanta (2008), Bahia Beach, PuertoRico (2008) Costa Rica (2008) Deer Valley, UT (2008), Puerto Rico(2008) and Bal Harbour, FL (2009) that will further enhance thebrand's legacy. Personalized service and amenities, enviable locationsand luxuriously localized design are recognized worldwide as hallmarksof the St. Regis experience. For more information on St. Regis Hotels& Resorts, please visit www.stregis.com.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leadinghotel and leisure companies in the world with approximately 850properties in more than 95 countries and 145,000 employees at itsowned and managed properties. Starwood(R) Hotels is a fully integratedowner, operator and franchisor of hotels and resorts with thefollowing internationally 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.

(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.)