Exhibit 99.1

Investor Contact Stephen Pettibone 203-351-3500
Media Contact KC Kavanagh 866-478-2777	One StarPoint                         Stamford, CT 06902                         United States

STARWOOD REPORTS SECOND QUARTER

2014 RESULTS

STAMFORD, Conn. (July 24, 2014) – Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) today reported second quarter 2014 financial results.

Second Quarter 2014 Highlights

• Excluding special items, EPS from continuing operations was $0.77. Including special items, EPS from continuing operations was $0.80.

• Adjusted EBITDA was $324 million.

• Excluding special items, income from continuing operations was $147 million. Including special items, income from continuing operations was $153 million.

• Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.3% in constant dollars (5.1% in actual dollars) compared to 2013. Systemwide REVPAR for Same-Store Hotels in North America increased 6.3% in constant dollars (5.7% in actual dollars).

• Management fees, franchise fees and other income increased 10.2% compared to 2013.

• Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 87 basis points compared to 2013.

• Worldwide REVPAR for Starwood Same-Store Owned Hotels increased 6.0% in constant dollars (6.5% in actual dollars) compared to 2013.

• Margins at Starwood Same-Store Owned Hotels Worldwide increased approximately 160 basis points compared to 2013.

• Earnings from Starwood’s vacation ownership and residential business decreased approximately $30 million compared to 2013, including a $29 million decrease in earnings from the St. Regis Bal Harbour residential project which is sold out.

• During the quarter, the Company signed 45 hotel management and franchise contracts, representing approximately 8,500 rooms, and opened 19 hotels and resorts with approximately 3,800 rooms.

• During the quarter, the Company paid a quarterly dividend of $0.35 per share and a special dividend of $0.65 per share, and repurchased 2.2 million shares at a total cost of $170 million and an average price of $78.67 per share. Year to date through July 22, the company has repurchased 2.5 million shares at a total cost of $198 million and an average price of $79.19.

Second Quarter 2014 Earnings Summary

Starwood Hotels & Resorts Worldwide, Inc. (“Starwood” or the “Company”) today reported EPS from continuing operations for the second quarter of 2014 of $0.80 compared to $0.71 in the second quarter of 2013. Excluding special items, EPS from continuing operations was $0.77 for the second quarter of 2014 compared to $0.79 in the second quarter of 2013. Special items in the second quarter of 2014, which totaled a benefit of $6 million (after-tax), include a $3 million pre-tax benefit associated with the reversal of a note receivable reserve from a previous disposition and a $3 million pre-tax benefit primarily due to the conversion of a leased hotel to a managed hotel. Special items in the second quarter of 2013, which totaled a charge of $16 million (after tax), primarily related to certain non-recurring income tax charges associated with an asset disposition, interest on deferred income from sales of vacation ownership units, and the resolution of certain tax positions. Excluding special items, the effective income tax rate in the second quarter of 2014 was 33.3% compared to 33.8% in the second quarter of 2013.

Income from continuing operations was $153 million in the second quarter of 2014, compared to $137 million in the second quarter of 2013. Excluding special items, income from continuing operations was $147 million in the second quarter of 2014 compared to $153 million in the second quarter of 2013.

Net income was $153 million and $0.80 per share in the second quarter of 2014, compared to $137 million and $0.71 per share in the second quarter of 2013.

Frits van Paasschen, CEO, said, “We exceeded our expectations for both adjusted EBITDA and EPS in the second quarter. Rising REVPAR drove strong growth in our management and franchise fees. This continued growth in our fee business, along with the trends we are seeing across our hotels and vacation ownership, points to a global recovery that is steadily moving into its fifth year.

“As we look ahead to the balance of the year, we expect that global trend lines will fuel demand for high-end travel. In our view, rising wealth, urbanization, digital connectivity and expansion of global businesses will drive demand for our brands.”

Six Months Ended June 30, 2014 Earnings Summary

Income from continuing operations was $289 million in the six months ended June 30, 2014 compared to $280 million in the same period in 2013. Excluding special items, income from continuing operations was $269 million in the six months ended June 30, 2014 compared to $301 million in the same period in 2013.

Net income was $290 million and $1.52 per share in the six months ended June 30, 2014 compared to $350 million and $1.80 per share in the same period in 2013.

Adjusted EBITDA was $605 million in the six months ended June 30, 2014 compared to $648 million in the same period in 2013.

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Second Quarter 2014 Operating Results

Management and Franchise Revenues

Worldwide Systemwide REVPAR for Same-Store Hotels increased 5.3% in constant dollars (5.1% in actual dollars) compared to the second quarter of 2013. International Systemwide REVPAR for Same-Store Hotels increased 4.1% in constant dollars (4.4% in actual dollars).

Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by region:

	REVPAR
Region	Constant Dollars			Actual Dollars
Americas:
North America		6.3	%		5.7	%
Latin America		4.8	%		4.8	%
Asia Pacific:
Greater China		11.1	%		10.0	%
Rest of Asia		2.9	%		(2.9	)%
Europe, Africa & Middle East:
Europe		1.9	%		7.1	%
Africa & Middle East		(0.9	)%		(1.2	)%

Changes in REVPAR for Worldwide Systemwide Same-Store Hotels by brand:

	REVPAR
Brand	Constant Dollars			Actual Dollars
St. Regis/Luxury Collection		4.9	%		5.9	%
W Hotels		6.4	%		6.2	%
Westin		5.8	%		5.3	%
Sheraton		5.2	%		4.7	%
Le Méridien		1.1	%		2.5	%
Four Points by Sheraton		5.7	%		4.4	%
Aloft		12.6	%		12.3	%

Worldwide Same-Store Company-Operated gross operating profit margins increased approximately 87 basis points compared to 2013. International gross operating profit margins for Same-Store Company-Operated properties increased approximately 100 basis points. North American Same-Store Company-Operated gross operating profit margins increased approximately 72 basis points.

Management fees, franchise fees and other income were $260 million, up $24 million, or 10.2% compared to the second quarter of 2013. Management fees increased 6.6% to $146 million and franchise fees increased 10.7% to $62 million compared to the second quarter of 2013. Other management and franchise revenue was up 29.7% compared to the second quarter of 2013 primarily due to fees associated with the termination of certain franchise contracts during the quarter.

Development

During the second quarter of 2014, the Company signed 45 hotel management and franchise contracts, representing approximately 8,500 rooms, of which 37 are new builds and eight are conversions from other brands. At June 30, 2014, the Company had approximately 450 hotels in the active pipeline representing approximately 105,000 rooms.

During the second quarter of 2014, 19 new hotels and resorts (representing approximately 3,800 rooms) entered the system, including La Posada de Santa Fe, a Luxury Collection Resort & Spa (New Mexico, 157 rooms), The Westin Cleveland Downtown (Ohio, 484 rooms), The Westin Chongqing Liberation Square (China, 336 rooms), Sheraton Reserva do Paiva Hotel & Convention Center (Brazil, 298 rooms), and Aloft Atlanta Downtown (Georgia, 248 rooms). During the quarter, six properties (representing approximately 1,200 rooms) were removed from the system.

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Owned Hotels

Worldwide REVPAR at Starwood Same-Store Owned Hotels increased 6.0% in constant dollars (6.5% in actual dollars) when compared to 2013. REVPAR at Starwood Same-Store Owned Hotels in North America increased 4.1% in constant dollars (1.5% actual dollars). Internationally, Starwood Same-Store Owned Hotel REVPAR increased 7.4% in constant dollars (10.0% in actual dollars).

Revenues at Starwood Same-Store Owned Hotels Worldwide increased 4.6% in constant dollars (4.8% in actual dollars) while costs and expenses increased 2.4% in constant dollars (2.7% in actual dollars) when compared to 2013. Margins at these hotels increased approximately 160 basis points compared to 2013.

Revenues at Starwood Same-Store Owned Hotels in North America increased 3.3% in constant dollars (0.8% in actual dollars) while costs and expenses increased 2.3% in constant dollars (flat in actual dollars) when compared to 2013. Margins at these hotels increased approximately 50 basis points compared to 2013.

Internationally, revenues at Starwood Same-Store Owned Hotels increased 5.6% in constant dollars (7.8% in actual dollars) while costs and expenses increased 2.4% in constant dollars (4.8% in actual dollars) when compared to 2013. Margins at these hotels increased approximately 200 basis points compared to 2013.

Revenues at Owned Hotels were $414 million, compared to $419 million in 2013. Expenses at Owned Hotels were $314 million compared to $328 million in 2013. Second quarter revenues were negatively impacted by asset sales since the second quarter of 2013.

Vacation Ownership

Vacation ownership revenues for the three months ended June 30, 2014 increased $1 million, or 0.6%, to $160 million, compared to the corresponding period in 2013. Originated contract sales of vacation ownership intervals remained flat for the three months ended June 30, 2014, compared to the corresponding period in 2013, as the average price per vacation ownership unit sold increased 1.8% to approximately $15,100, offset by a 1.6% decrease in the number of contracts signed.

Residential

During the second quarter of 2014, the Company’s residential revenues were $11 million compared to $80 million in 2013. The Company realized residential revenues from Bal Harbour of $7 million and generated earnings of $1 million, compared to revenues of $74 million and earnings of $30 million in the second quarter of 2013, due to the sellout of the St. Regis Bal Harbour residential project.

Selling, General, Administrative and Other

During the second quarter of 2014, selling, general, administrative and other expenses increased 15.9% to $102 million compared to $88 million in 2013, primarily due to $7 million of favorable benefits from certain government incentives received in the second quarter of 2013 in connection with the relocation of our corporate headquarters, the increase in costs commensurate with our growth, and the timing of expenses within the year. The Company continues to target a 3% to 5% increase for the full year.

Capital

Gross capital spending during the quarter included approximately $46 million of maintenance capital and $41 million of development capital.

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Asset Sales

During the second quarter of 2014, the Company completed the sale of the Aloft Tucson University in Tucson, AZ for gross cash proceeds of approximately $19 million, subject to a long-term franchise contract. Also in the second quarter of 2014, the Company converted The Park Lane Hotel in London, United Kingdom from a leased hotel to a managed hotel.

Dividend

In the second quarter of 2014, the Company declared a regular quarterly dividend of $0.35 per share, which was paid on June 27, 2014. In accordance with the Company’s intention to return approximately $500 million in cash realized from the completion of the St. Regis Bal Harbour residential project and sale of the hotel in the first quarter of 2014, the Company paid a special dividend of $0.65 per share on June 27, 2014 and expects to pay additional special dividends of $0.65 per share over each of the next two quarters. The total dividends paid in the second quarter of 2014 were approximately $190 million.

Share Repurchase

In the second quarter of 2014, the Company repurchased 2.2 million shares at a total cost of approximately $170 million and an average price of $78.67 per share. As of June 30, 2014, approximately $444 million remained available under the Company’s share repurchase authorization. Year to date through July 22, 2014, the Company has repurchased 2.5 million shares at a total cost of $198 million and an average price of $79.19.

Balance Sheet

At June 30, 2014, the Company had gross debt of $1.4 billion, cash and cash equivalents of $641 million (including $44 million of restricted cash) and net debt of $785 million, compared to net debt of $528 million as of December 31, 2013, in each case excluding debt and restricted cash associated with securitized vacation ownership notes receivable. The increase in net debt is primarily due to the addition of a $153 million capital lease obligation as a result of the Company entering into a master lease of its headquarters building in the second quarter of 2014. Net debt at June 30, 2014, including $300 million of debt and $13 million of restricted cash associated with securitized vacation ownership notes receivable, was $1.1 billion.

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Outlook

For the full year 2014:

• Adjusted EBITDA is expected to be approximately $1.215 billion to $1.235 billion (based on the assumptions below).

• REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 5% to 7% in constant dollars (approximately 25 basis points lower in actual dollars at current exchange rates).

• REVPAR increases at Same-Store Owned Hotels Worldwide of 4% to 6% in constant and actual dollars.

• Margins at Same-Store Owned Hotels Worldwide increase 75 to 125 basis points.

• Management fees, franchise fees and other income increase approximately 8% to 10%.

• Earnings from the Company’s vacation ownership and residential business of approximately $160 million to $170 million.

• Selling, general and administrative expenses increase approximately 3% to 5%.

• Full year owned earnings are negatively impacted by approximately $30 million due to 2013 and year-to-date 2014 asset sales, and a leased hotel that was converted to a managed hotel in 2014.

• Depreciation and amortization is expected to be approximately $315 million.

• Interest expense is expected to be approximately $115 million.

• Full year effective tax rate is expected to be approximately 32.5%, and cash taxes from operating earnings are expected to be approximately $160 million (based on the assumptions above).

• EPS before special items is expected to be approximately $2.78 to $2.85 (based on the assumptions above).

• Full year capital expenditures (excluding vacation ownership and residential inventory) are expected to be approximately $200 million for maintenance, renovation and technology. In addition, in-flight investment projects and prior commitments for joint ventures and other investments are expected to total approximately $200 million.

• Vacation ownership is expected to generate approximately $300 million in positive cash flow, assuming the completion of a securitization of receivables in the second half of 2014.

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For the three months ended September 30, 2014:

• Adjusted EBITDA is expected to be approximately $285 million to $295 million (based on the assumptions below).

• REVPAR increases at Same-Store Company-Operated Hotels Worldwide of 5% to 7% in constant dollars (approximately 50 basis points higher in actual dollars at current exchange rates).

• REVPAR increases at Same-Store Company Owned Hotels Worldwide of 5% to 7% in constant dollars (approximately 150 basis points higher in actual dollars at current exchange rates).

• Management fees, franchise fees and other income increase approximately 2% to 4%. The growth rate is impacted by a termination fee in 2013.

• Earnings from the Company’s vacation ownership and residential business of approximately $35 million to $40 million.

• Depreciation and amortization is expected to be approximately $80 million.

• Interest expense is expected to be approximately $30 million.

• The effective tax rate for the quarter is expected to be approximately 33% (based on the assumptions above).

• EPS is expected to be approximately $0.62 to $0.65 (based on the assumptions above).

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Special Items

The Company’s special items included a pre-tax and after-tax benefit of $6 million in the second quarter of 2014 compared to a pre-tax benefit of $1 million ($16 million charge after-tax) in the same period of 2013.

The following represents a reconciliation of income from continuing operations before special items to income from continuing operations including special items (in millions, except per share data):

Three Months Ended June 30,						Six Months Ended June 30,
2014		2013				2014			2013
$	147	$	153		Income from continuing operations before special items	$	269		$	301
$	0.77	$	0.79		EPS before special items	$	1.40		$	1.55
					Special Items
	3		—		Restructuring and other special (charges) credits, net (a)		3			1
	3		1		Gain (loss) on asset dispositions and impairments, net (b)		(33	)		(8	)
	6		1		Total special items – pre-tax		(30	)		(7	)
	—		(17	)	Income tax benefit (expense) for special items (c)		50			(14	)
	6		(16	)	Total special items – after-tax		20			(21	)
$	153	$	137		Income from continuing operations	$	289		$	280
$	0.80	$	0.71		EPS including special items	$	1.51		$	1.44

a) During the three and six months ended June 30, 2014, the net credit relates to the reversal of a reserve associated with a $3 million note receivable from a previous disposition.

b) During the three months ended June 30, 2014, the net gain is primarily due to the conversion of a leased hotel to a managed hotel discussed below. During the six months ended June 30, 2014, the net loss primarily relates to the impairment of two hotels, one of which was sold subject to a long-term franchise contract and the other of which represents a leased hotel that was converted to a managed hotel. In addition, during the six months ended June 30, 2014, the Company recorded an impairment charge associated with one of its foreign unconsolidated joint ventures. During the six months ended June 30, 2013, the net loss primarily relates to the sale of three wholly-owned hotels.

c) During the six months ended June 30, 2014, the net benefit primarily relates to the recognition of $52 million for settlement of a foreign tax audit, partially offset by tax charges on the pre-tax special items. During the three months ended June 30, 2013, the net charges included $4 million related to an asset disposition, $8 million to accrue interest on deferred income associated with vacation ownership sales, and approximately $5 million for charges associated with tax reserves and resolution of certain tax positions. The six months ended June 30, 2013, included a tax benefit of $3 million related to an asset sale.

The Company has included the above supplemental information concerning special items to assist investors in analyzing Starwood’s financial position and results of operations. The Company has chosen to provide this information to investors to enable them to perform meaningful comparisons of past, present and future operating results and as a means to emphasize the results of core ongoing operations.

Starwood will be conducting a conference call to discuss the second quarter financial results at 10:30 a.m. Eastern Time today, available via webcast on the Company’s website at http://www.starwoodhotels.com/corporate/about/investor/earnings.html. A webcast replay will be available on the corporate website a few hours after the live event on Thursday, July 24 and will run for one year. Alternatively, participants may dial into the live call at (866) 921-0636 with conference ID 61542222. Outside the U.S., participants may dial into the live call at (706) 758-8764. Please dial in fifteen minutes early to ensure a timely start. A call replay will be available a few hours after the live event on Thursday, July 24 and will run for one week; the call replay can be accessed by dialing (855) 859-2056 with conference ID 61542222. Outside the U.S., the call replay can be accessed at (404) 537-3406.

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Definitions

All references to EPS, unless otherwise noted, reflect earnings per diluted share from continuing operations attributable to Starwood’s common stockholders. All references to continuing operations, discontinued operations and net income reflect amounts attributable to Starwood’s common stockholders (i.e., excluding amounts attributable to noncontrolling interests). All references to “net capital expenditures” mean gross capital expenditures for timeshare and fractional inventory net of cost of sales. EBITDA represents net income before interest expense, taxes, depreciation and amortization. The Company believes that EBITDA is a useful measure of the Company’s operating performance due to the significance of the Company’s long-lived assets and level of indebtedness. EBITDA is a commonly used measure of performance in its industry which, when considered with GAAP measures, the Company believes gives a more complete understanding of the Company’s operating performance. It also facilitates comparisons between the Company and its competitors. The Company’s management has historically adjusted EBITDA (i.e., “Adjusted EBITDA”) when evaluating operating performance for the Company, as well as for individual properties or groups of properties, because the Company believes that the inclusion or exclusion of certain recurring and non-recurring items, such as restructuring and other special charges (credits), and gains and losses on asset dispositions and impairments, is necessary to provide the most accurate measure of core operating results and as a means to evaluate comparative results. The Company’s management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions and it is used in the annual budget process. The Company has historically reported this measure to its investors and believes that the continued inclusion of Adjusted EBITDA provides consistency in its financial reporting and enables investors to perform more meaningful comparisons of past, present and future operating results and provides a means to evaluate the results of its core ongoing operations. EBITDA and Adjusted EBITDA are not intended to represent cash flow from operations as defined by GAAP and such metrics should not be considered as an alternative to net income, cash flow from operations or any other performance measure prescribed by GAAP. The Company’s calculation of EBITDA and Adjusted EBITDA may be different from the calculations used by other companies and, therefore, comparability may be limited.

All references to Owned or Owned Hotels reflect the Company’s owned, leased, and consolidated joint venture hotels. All references to Same-Store Owned Hotels reflect the Company’s owned, leased and consolidated joint venture hotels, excluding condo hotels, hotels sold to date and hotels undergoing significant repositionings or for which comparable results are not available (i.e., hotels not owned during the entire periods presented or closed due to seasonality or natural disasters). References to Company-Operated Hotel metrics (e.g., REVPAR) reflect metrics for the Company’s Owned and managed hotels. References to Systemwide metrics (e.g., REVPAR) reflect metrics for the Company’s Owned, managed and franchised hotels. REVPAR is defined as revenue per available room. ADR is defined as average daily rate.

All references to revenues in constant dollars represent revenues excluding the impact of the movement of foreign exchange rates. The Company calculates revenues in constant dollars by calculating revenues for the current year using the prior year’s exchange rates. The Company uses this revenue measure to better understand the underlying results and trends of the business, excluding the impact of movements in foreign exchange rates.

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All references to contract sales or originated sales reflect vacation ownership sales before revenue adjustments for percentage of completion accounting methodology. All references to earnings from vacation ownership and residential represents operating income before depreciation expense. All references to management and franchise revenues represent base and incentive fees, franchise fees, amortization of deferred gains resulting from the sales of hotels subject to long-term management contracts and termination fees.

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the world with nearly 1,200 properties in 100 countries and 181,400 employees at its owned and managed properties. Starwood is a fully integrated owner, operator and franchisor of hotels, resorts and residences with the following internationally renowned brands: St. Regis^®, The Luxury Collection^®, W^®, Westin^®, Le Méridien^®, Sheraton^®, Four Points^® by Sheraton, Aloft^®, and Element^®. The Company boasts one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG^®), allowing members to earn and redeem points for room stays, room upgrades and flights, with no blackout dates. Starwood also owns Starwood Vacation Ownership, Inc., a premier provider of world-class vacation experiences through villa-style resorts and privileged access to Starwood brands. For more information, including reconciliations of non-GAAP financial measures to GAAP financial measures, please visit www.starwoodhotels.com or contact Investor Relations at (203) 351-3500.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Further results, performance and achievements may be affected by general economic conditions including the impact of war and terrorist activity, natural disasters, business and financing conditions (including the condition of credit markets in the U.S. and internationally), foreign exchange fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation ownership businesses, operating risks associated with the hotel, vacation ownership and residential businesses, relationships with associates and labor unions, customers and property owners, the impact of the internet reservation channels, our reliance on technology, domestic and international political and geopolitical conditions, competition, governmental and regulatory actions (including the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of exposure to contagious diseases, risk associated with the level of our indebtedness, risk associated with potential acquisitions and dispositions and the introduction of new brand concepts and other risks and uncertainties. These risks and uncertainties are presented in detail in our filings with the Securities and Exchange Commission. There can be no assurance as to the development of future hotels in the Company’s pipeline or additional vacation ownership units. Although we believe the expectations reflected in forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. 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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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Unaudited Consolidated Statements of Income

(In millions, except per share data)

Three Months Ended June 30										Six Months Ended June 30,
2014			2013			% Variance				2014			2013			% Variance
									Revenues
$	414		$	419			(1.2	)	Owned, leased and consolidated joint venture hotels	$	778		$	798			(2.5	)
	171			239			(28.5	)	Vacation ownership and residential sales and services		345			548			(37.0	)
	260			236			10.2		Management fees, franchise fees and other income		508			453			12.1
	694			668			3.9		Other revenues from managed and franchised properties (a)		1,366			1,302			4.9
	1,539			1,562			(1.5	)			2,997			3,101			(3.4	)
									Costs and Expenses
	314			328			4.3		Owned, leased and consolidated joint venture hotels		615			648			5.1
	125			163			23.3		Vacation ownership and residential		253			362			30.1
	102			88			(15.9	)	Selling, general, administrative and other		197			178			(10.7	)
	(3	)		—			n/m		Restructuring and other special charges (credits), net		(3	)		(1	)		n/m
	63			57			(10.5	)	Depreciation		123			115			(7.0	)
	7			8			12.5		Amortization		15			15			—
	694			668			(3.9	)	Other expenses from managed and franchised properties (a)		1,366			1,302			(4.9	)
	1,302			1,312			0.8				2,566			2,619			2.0
	237			250			(5.2	)	Operating income		431			482			(10.6	)
	9			8			12.5		Equity earnings and gains from unconsolidated ventures, net		18			17			5.9
	(23	)		(26	)		11.5		Interest expense, net of interest income of $1, $0, $2 and $1		(46	)		(52	)		11.5
	3			1			n/m		Gain (loss) on asset dispositions and impairments, net		(33	)		(8	)		n/m
	226			233			(3.0	)	Income from continuing operations before taxes and noncontrolling interests		370			439			(15.7	)
	(73	)		(95	)		23.2		Income tax expense		(81	)		(159	)		49.1
	153			138			10.9		Income from continuing operations		289			280			3.2
									Discontinued Operations:
	—			—			—		Gain on dispositions, net of tax		1			70			(98.6	)
	153			138			10.9		Net income		290			350			(17.1	)
	—			(1	)		100.0		Net loss (income) attributable to noncontrolling interests		—			—			—
$	153		$	137			11.7		Net income attributable to Starwood	$	290		$	350			(17.1	)
									Earnings Per Share – Basic
$	0.81		$	0.72			12.5		Continuing operations	$	1.52		$	1.46			4.1
	—			—			—		Discontinued operations		0.01			0.37			(97.3	)
$	0.81		$	0.72			12.5		Net income	$	1.53		$	1.83			(16.4	)
									Earnings Per Share – Diluted
$	0.80		$	0.71			12.7		Continuing operations	$	1.51		$	1.44			4.9
	—			—			—		Discontinued operations		0.01			0.36			(97.2	)
$	0.80		$	0.71			12.7		Net income	$	1.52		$	1.80			(15.6	)
									Amounts attributable to Starwood’s Common Stockholders
$	153		$	137			11.7		Continuing operations	$	289		$	280			3.2
	—			—			—		Discontinued operations		1			70			(98.6	)
$	153		$	137			11.7		Net income	$	290		$	350			(17.1	)
	190			192					Weighted average number of shares		190			192
	191			194					Weighted average number of shares assuming dilution		191			194

(a) The Company includes in revenues the reimbursement of costs incurred on behalf of managed hotel property owners and franchisees with no added margin and includes in costs and expenses these reimbursed costs. These costs relate primarily to payroll costs at managed properties where the Company is the employer.

n/m = not meaningful

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Consolidated Balance Sheets

(In millions, except share data)

	June 30, 2014			December 31, 2013
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	597		$	616
Restricted cash		53			134
Accounts receivable, net of allowance for doubtful accounts of $67 and $59		640			643
Inventories		202			217
Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $5 and $6		51			54
Deferred income taxes		203			211
Prepaid expenses and other		176			121
Total current assets		1,922			1,996
Investments		242			251
Plant, property and equipment, net		3,046			3,034
Goodwill and intangible assets, net		2,013			2,032
Deferred income taxes		617			591
Other assets (a)		636			543
Securitized vacation ownership notes receivable, net		270			315
Total assets	$	8,746		$	8,762
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings and current maturities of long-term debt (b)	$	3		$	2
Accounts payable		88			105
Current maturities of long-term securitized vacation ownership debt		86			97
Accrued expenses		1,141			1,092
Accrued salaries, wages and benefits		367			404
Accrued taxes and other		257			224
Total current liabilities		1,942			1,924
Long-term debt (b)		1,423			1,265
Long-term securitized vacation ownership debt		214			258
Deferred income taxes		46			48
Other liabilities		1,976			1,904
Total liabilities		5,601			5,399
Commitments and contingencies
Stockholders’ equity:
Common stock; $0.01 par value; authorized 1,000,000,000 shares; 190,637,669 and 191,897,809 shares outstanding at June 30, 2014 and December 31, 2013, respectively		2			2
Additional paid-in capital		533			661
Accumulated other comprehensive loss		(330	)		(335	)
Retained earnings		2,937			3,032
Total Starwood stockholders’ equity		3,142			3,360
Noncontrolling interests		3			3
Total equity		3,145			3,363
Total liabilities and equity	$	8,746		$	8,762

(a) Includes restricted cash of $4 million and $3 million at June 30, 2014 and December 31, 2013, respectively.

(b) Excludes Starwood’s share of unconsolidated joint venture debt aggregating approximately $216 million and $218 million at June 30, 2014 and December 31, 2013, respectively.

12

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Historical Data

(In millions)

Three Months Ended June 30,										Six Months Ended June 30,
2014			2013			% Variance				2014			2013			% Variance
									Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
$	153		$	137			11.7		Net income	$	290		$	350			(17.1	)
	27			32			(15.6	)	Interest expense (a)		54			60			(10.0	)
	73			95			(23.2	)	Income tax (benefit) expense (b)		80			89			(10.1	)
	69			61			13.1		Depreciation (c)		135			125			8.0
	8			9			(11.1	)	Amortization (d)		16			17			(5.9	)
	330			334			(1.2	)	EBITDA		575			641			(10.3	)
	(3	)		(1	)		n/m		(Gain) loss on asset dispositions and impairments, net		33			8			n/m
	(3	)		—			n/m		Restructuring and other special charges (credits), net		(3	)		(1	)		n/m
$	324		$	333			(2.7	)	Adjusted EBITDA	$	605		$	648			(6.6	)

(a) Includes $3 million and $6 million of Starwood’s share of interest expense from unconsolidated joint ventures for the three months ended June 30, 2014 and 2013, respectively, and $6 million and $7 million for the six months ended June 30, 2014 and 2013, respectively.

(b) Includes $0 million of tax expense (benefit) recorded in discontinued operations for the three months ended June 30, 2014 and 2013, respectively, and $(1) million and $(70) million for the six months ended June 30, 2014 and 2013, respectively.

(c) Includes $6 million and $4 million of Starwood’s share of depreciation expense from unconsolidated joint ventures for the three months ended June 30, 2014 and 2013, respectively, and $12 million and $10 million for the six months ended June 30, 2014 and 2013, respectively.

(d) Includes $1 million and $1 million of Starwood’s share of amortization expense from unconsolidated joint ventures for the three months ended June 30, 2014 and 2013, respectively, and $1 million and $2 million for the six months ended June 30, 2014 and 2013, respectively.

13

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels Worldwide

(In millions)

	Three Months Ended June 30, 2014
	$ Change			% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	16			4.8
Impact of changes in foreign exchange rates		(1	)		(0.2	)
Revenue increase/(decrease) in constant dollars	$	15			4.6
Expense
Expense increase/(decrease) (GAAP)	$	7			(2.7	)
Impact of changes in foreign exchange rates		(1	)		0.3
Expense increase/(decrease) in constant dollars	$	6			(2.4	)

Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels North America

(In millions)

	Three Months Ended June 30, 2014
	$ Change		% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	1		0.8
Impact of changes in foreign exchange rates		4		2.5
Revenue increase/(decrease) in constant dollars	$	5		3.3
Expense
Expense increase/(decrease) (GAAP)	$	—		—
Impact of changes in foreign exchange rates		3		(2.3	)
Expense increase/(decrease) in constant dollars	$	3		(2.3	)

Non-GAAP to GAAP Reconciliations – Same-Store Owned Hotels International

(In millions)

	Three Months Ended June 30, 2014
	$ Change			% Variance
Revenue
Revenue increase/(decrease) (GAAP)	$	15			7.8
Impact of changes in foreign exchange rates		(4	)		(2.2	)
Revenue increase/(decrease) in constant dollars	$	11			5.6
Expense
Expense increase/(decrease) (GAAP)	$	7			(4.8	)
Impact of changes in foreign exchange rates		(4	)		2.4
Expense increase/(decrease) in constant dollars	$	3			(2.4	)

14

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliation – Earnings from Vacation Ownership and Residential Business

(In millions)

	Three Months Ended June 30, 2014
	2014			2013			$ Variance
Vacation ownership and residential sales and services revenue	$	171		$	239			(68	)
Vacation ownership and residential expense		(125	)		(163	)		38
Earnings from vacation ownership and residential	$	46		$	76			(30	)
	Three Months Ended June 30, 2014
	2014			2013			$ Variance
Total Bal Harbour revenues	$	7		$	74			(67	)
Total Bal Harbour expenses		(6	)		(44	)		38
Earnings from Bal Harbour	$	1		$	30			(29	)

15

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Future Performance

(In millions, except per share data)

Low Case

Three Months Ended September 30, 2014			Year Ended December 31, 2014
$	117	Net income	$	551
	30	Interest expense		115
	58	Income tax expense		204
	80	Depreciation and amortization		315
	285	EBITDA		1,185
	—	(Gain) loss on asset dispositions and impairments, net		33
	—	Restructuring and other special charges (credits), net		(3	)
$	285	Adjusted EBITDA	$	1,215
Three Months Ended September 30, 2014			Year Ended December 31, 2014
$	117	Income from continuing operations before special items	$	530
$	0.62	EPS before special items	$	2.78
		Special Items
	—	Restructuring and other special (charges) credits, net		3
	—	Gain (loss) on asset dispositions and impairments, net		(33	)
	—	Total special items – pre-tax		(30	)
	—	Income tax benefit (expense) on special items		50
	—	Total special items – after-tax		20
$	117	Income from continuing operations	$	550
$	0.62	EPS including special items	$	2.88
		High Case
Three Months Ended September 30, 2014			Year Ended December 31, 2014
$	124	Net income	$	565
	30	Interest expense		115
	61	Income tax expense		210
	80	Depreciation and amortization		315
	295	EBITDA		1,205
	—	(Gain) loss on asset dispositions and impairments, net		33
	—	Restructuring and other special charges (credits), net		(3	)
$	295	Adjusted EBITDA	$	1,235
Three Months Ended September 30, 2014			Year Ended December 31, 2014
$	124	Income from continuing operations before special items	$	544
$	0.65	EPS before special items	$	2.85
		Special Items
	—	Restructuring and other special (charges) credits, net		3
	—	Gain (loss) on asset dispositions and impairments, net		(33	)
	—	Total special items – pre-tax		(30	)
	—	Income tax benefit (expense) on special items		50
	—	Total special items – after-tax		20
$	124	Income from continuing operations	$	564
$	0.65	EPS including special items	$	2.95

16

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations –

Future Earnings from Vacation Ownership and Residential Business

(In millions)

Low Case

	Three Months Ended September 30, 2014
Vacation ownership and residential sales and services revenue	$	158
Vacation ownership and residential expenses		(123	)
Earnings from vacation ownership and residential	$	35
	Year Ended   December 31, 2014
Vacation ownership and residential sales and services revenues	$	680
Vacation ownership and residential expenses		(520	)
Earnings from vacation ownership and residential	$	160

High Case

	Three Months Ended September 30, 2014
Vacation ownership and residential sales and services revenue	$	161
Vacation ownership and residential expenses		(121	)
Earnings from vacation ownership and residential	$	40
	Year Ended   December 31, 2014
Vacation ownership and residential sales and services revenues	$	685
Vacation ownership and residential expenses		(515	)
Earnings from vacation ownership and residential	$	170

17

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Non-GAAP to GAAP Reconciliations – Same Store Owned Hotel Revenue and Expenses

(In millions)

Three Months Ended June 30,								Six Months Ended June 30,
2014		2013		% Variance			Same-Store Owned Hotels Worldwide	2014		2013		% Variance
							Revenue
$	351	$	335		4.8		Same-Store Owned Hotels (a)	$	618	$	598		3.4
	3		36		(91.7	)	Hotels Sold or Closed in 2014 and 2013		19		83		(77.1	)
	53		41		29.3		Hotels Without Comparable Results		127		104		22.1
	7		7		—		Other ancillary hotel operations		14		13		7.7
$	414	$	419		(1.2	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	778	$	798		(2.5	)
							Costs and Expenses
$	261	$	254		(2.7	)	Same-Store Owned Hotels (a)	$	485	$	478		(1.5	)
	2		28		92.9		Hotels Sold or Closed in 2014 and 2013		13		62		79.0
	44		40		(10.0	)	Hotels Without Comparable Results		104		95		(9.5	)
	7		6		(16.7	)	Other ancillary hotel operations		13		13		—
$	314	$	328		4.3		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	615	$	648		5.1
Three Months Ended June 30,								Six Months Ended June 30,
2014		2013		% Variance			Same-Store Owned Hotels North America	2014		2013		% Variance
							Revenue
$	143	$	142		0.8		Same-Store Owned Hotels (a)	$	283	$	278		1.6
	—		27		(100.0	)	Hotels Sold or Closed in 2014 and 2013		8		67		(88.1	)
	53		40		32.5		Hotels Without Comparable Results		103		83		24.1
	—		—		—		Other ancillary hotel operations		—		—		—
$	196	$	209		(6.2	)	Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	394	$	428		(7.9	)
							Costs and Expenses
$	112	$	112		—		Same-Store Owned Hotels (a)	$	225	$	224		(0.5	)
	—		22		100.0		Hotels Sold or Closed in 2014 and 2013		5		51		90.2
	44		40		(10.0	)	Hotels Without Comparable Results		87		79		(10.1	)
	1		—		n/m		Other ancillary hotel operations		—		1		100.0
$	157	$	174		9.8		Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	317	$	355		10.7
Three Months Ended June 30,								Six Months Ended June 30
2014		2013		% Variance			Same-Store Owned Hotels International	2014		2013		% Variance
							Revenue
$	208	$	193		7.8		Same-Store Owned Hotels (a)	$	335	$	320		5.1
	3		9		(66.7	)	Hotels Sold or Closed in 2014 and 2013		11		16		(31.3	)
	—		1		(100.0	)	Hotels Without Comparable Results		24		21		14.3
	7		7		—		Other ancillary hotel operations		14		13		7.7
$	218	$	210		3.8		Total Owned, Leased and Consolidated Joint Venture Hotels Revenue	$	384	$	370		3.8
							Costs and Expenses
$	149	$	142		(4.8	)	Same-Store Owned Hotels (a)	$	260	$	254		(2.3	)
	2		6		66.7		Hotels Sold or Closed in 2014 and 2013		8		11		27.3
	—		—		—		Hotels Without Comparable Results		17		16		(6.3	)
	6		6		—		Other ancillary hotel operations		13		12		(8.3	)
$	157	$	154		(1.9	)	Total Owned, Leased and Consolidated Joint Venture Hotels Costs and Expenses	$	298	$	293		(1.7	)

(a) Same-Store Owned Hotel results exclude five hotels sold, one leased hotel converted to a managed hotel and four hotels without comparable results for the three months ended June 30, 2014 and eight hotels sold, one leased hotel converted to a managed hotel and six hotels without comparable results for the six months ended June 30, 2014.

18

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide⁽¹⁾ Statistics—Same Store

For the Three Months Ended June 30,

UNAUDITED

	Systemwide—Worldwide									Systemwide—North America									Systemwide—International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS
REVPAR ($)		128.14			121.91			5.1	%		136.83			129.47			5.7	%		118.23			113.27			4.4	%
ADR ($)		178.19			174.42			2.2	%		175.73			170.07			3.3	%		181.54			180.45			0.6	%
Occupancy (%)		71.9	%		69.9	%		2.0			77.9	%		76.1	%		1.8			65.1	%		62.8	%		2.3
SHERATON
REVPAR ($)		108.59			103.75			4.7	%		117.01			111.54			4.9	%		99.53			95.36			4.4	%
ADR ($)		153.80			150.70			2.1	%		153.05			148.67			2.9	%		154.76			153.35			0.9	%
Occupancy (%)		70.6	%		68.8	%		1.8			76.4	%		75.0	%		1.4			64.3	%		62.2	%		2.1
WESTIN
REVPAR ($)		146.24			138.90			5.3	%		149.04			140.29			6.2	%		140.39			135.99			3.2	%
ADR ($)		192.03			187.33			2.5	%		188.58			181.14			4.1	%		200.14			202.24			-1.0	%
Occupancy (%)		76.2	%		74.1	%		2.1			79.0	%		77.4	%		1.6			70.1	%		67.2	%		2.9
ST. REGIS/LUXURY COLLECTION
REVPAR ($)		207.03			195.54			5.9	%		252.47			239.40			5.5	%		188.69			177.56			6.3	%
ADR ($)		311.47			304.14			2.4	%		338.85			323.56			4.7	%		298.46			294.36			1.4	%
Occupancy (%)		66.5	%		64.3	%		2.2			74.5	%		74.0	%		0.5			63.2	%		60.3	%		2.9
LE MERIDIEN
REVPAR ($)		132.32			129.10			2.5	%		230.69			215.39			7.1	%		116.68			115.30			1.2	%
ADR ($)		195.71			190.99			2.5	%		267.35			259.42			3.1	%		180.51			177.04			2.0	%
Occupancy (%)		67.6	%		67.6	%		0.0			86.3	%		83.0	%		3.3			64.6	%		65.1	%		-0.5
W
REVPAR ($)		238.25			224.37			6.2	%		233.66			224.78			4.0	%		247.59			223.54			10.8	%
ADR ($)		299.15			289.78			3.2	%		284.95			274.59			3.8	%		330.81			326.53			1.3	%
Occupancy (%)		79.6	%		77.4	%		2.2			82.0	%		81.9	%		0.1			74.8	%		68.5	%		6.3
FOUR POINTS
REVPAR ($)		80.50			77.13			4.4	%		91.12			85.51			6.6	%		65.67			65.51			0.2	%
ADR ($)		115.36			115.69			-0.3	%		119.38			116.32			2.6	%		108.29			114.57			-5.5	%
Occupancy (%)		69.8	%		66.7	%		3.1			76.3	%		73.5	%		2.8			60.6	%		57.2	%		3.4
ALOFT
REVPAR ($)		85.17			75.81			12.3	%		101.93			90.09			13.1	%		51.72			47.01			10.0	%
ADR ($)		115.89			112.34			3.2	%		127.99			121.57			5.3	%		84.48			86.86			-2.7	%
Occupancy (%)		73.5	%		67.5	%		6.0			79.6	%		74.1	%		5.5			61.2	%		54.1	%		7.1

(1) Includes same store Owned, managed, and franchised hotels

19

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results—Same Store

For the Three Months Ended June 30,

UNAUDITED

	Systemwide (1)									Company Operated (2)
	2014			2013			Var. USD			2014			2013			Var. USD
TOTAL WORLDWIDE
REVPAR ($)		128.14			121.91			5.1	%		141.63			134.81			5.1	%
ADR ($)		178.19			174.42			2.2	%		199.65			195.85			1.9	%
Occupancy (%)		71.9	%		69.9	%		2.0			70.9	%		68.8	%		2.1
AMERICAS
REVPAR ($)		133.37			126.26			5.6	%		162.86			155.00			5.1	%
ADR ($)		175.09			169.35			3.4	%		212.25			204.87			3.6	%
Occupancy (%)		76.2	%		74.6	%		1.6			76.7	%		75.7	%		1.0
North America
REVPAR ($)		136.83			129.47			5.7	%		170.96			162.88			5.0	%
ADR ($)		175.73			170.07			3.3	%		215.97			208.50			3.6	%
Occupancy (%)		77.9	%		76.1	%		1.8			79.2	%		78.1	%		1.1
Latin America
REVPAR ($)		94.24			89.91			4.8	%		101.51			95.30			6.5	%
ADR ($)		165.31			158.38			4.4	%		173.99			167.18			4.1	%
Occupancy (%)		57.0	%		56.8	%		0.2			58.3	%		57.0	%		1.3
ASIA PACIFIC
REVPAR ($)		97.01			93.55			3.7	%		98.87			94.16			5.0	%
ADR ($)		153.01			157.61			-2.9	%		154.93			158.99			-2.6	%
Occupancy (%)		63.4	%		59.4	%		4.0			63.8	%		59.2	%		4.6
Greater China
REVPAR ($)		92.29			83.87			10.0	%		91.57			83.00			10.3	%
ADR ($)		148.50			152.76			-2.8	%		146.71			151.20			-3.0	%
Occupancy (%)		62.1	%		54.9	%		7.2			62.4	%		54.9	%		7.5
Rest of Asia Pacific
REVPAR ($)		103.05			106.12			-2.9	%		112.89			115.91			-2.6	%
ADR ($)		158.54			162.91			-2.7	%		169.75			171.31			-0.9	%
Occupancy (%)		65.0	%		65.1	%		-0.1			66.5	%		67.7	%		-1.2
EAME
REVPAR ($)		155.53			148.28			4.9	%		163.20			155.33			5.1	%
ADR ($)		222.63			213.77			4.1	%		231.79			222.13			4.3	%
Occupancy (%)		69.9	%		69.4	%		0.5			70.4	%		69.9	%		0.5
Europe
REVPAR ($)		175.19			163.52			7.1	%		193.75			179.72			7.8	%
ADR ($)		238.71			226.94			5.2	%		256.71			243.25			5.5	%
Occupancy (%)		73.4	%		72.1	%		1.3			75.5	%		73.9	%		1.6
Africa & Middle East
REVPAR ($)		116.74			118.14			-1.2	%		116.94			118.21			-1.1	%
ADR ($)		185.61			184.46			0.6	%		186.39			184.98			0.8	%
Occupancy (%)		62.9	%		64.0	%		-1.1			62.7	%		63.9	%		-1.2

(1) Includes same store Owned, managed, and franchised hotels

(2) Includes same store Owned and managed hotels

20

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotel Results—Same Store

For the Three Months Ended June 30,

UNAUDITED

	Worldwide									North America									International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS	40 Hotels									12 Hotels									28 Hotels
REVPAR ($)		178.74			167.85			6.5	%		156.88			154.56			1.5	%		196.73			178.80			10.0	%
ADR ($)		240.17			229.56			4.6	%		201.53			198.26			1.6	%		274.75			258.65			6.2	%
Occupancy (%)		74.4	%		73.1	%		1.3			77.8	%		78.0	%		-0.2			71.6	%		69.1	%		2.5
Total Revenue*		350,719			334,505			4.8	%		143,014			141,910			0.8	%		207,705			192,596			7.8	%
Total Expenses*		260,710			253,868			-2.7	%		112,486			112,462			0.0	%		148,224			141,405			-4.8	%

* Revenues & Expenses above are represented in ‘000’s

21

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Three Months Ended June 30,

UNAUDITED ($ millions)

	Worldwide
	2014		2013		Variance			% Variance
Management Fees
Base Fees		98		92		6			6.5	%
Incentive Fees		48		45		3			6.7	%
Total Management Fees		146		137		9			6.6	%
Franchise Fees		62		56		6			10.7	%
Total Management & Franchise Fees		208		193		15			7.8	%
Other Management & Franchise Revenues (1)		48		37		11			29.7	%
Total Management & Franchise Revenues		256		230		26			11.3	%
Other		4		6		(2	)		(33.3	)%
Management Fees, Franchise Fees and Other Income		260		236		24			10.2	%

(1) Other Management & Franchise Revenues primarily includes the amortization of the deferred gains of approximately $22 million in 2014 and 2013 resulting from the sales of hotels subject to long-term management contracts and termination fees.

22

Vacation Ownership & Residential Revenues and Expenses

For the Three Months Ended June 30,

UNAUDITED ($ millions)

	2014			2013			$ Variance			% Variance
Originated Sales Revenues (1)—Vacation Ownership Sales		79			79			—			—
Other Sales and Services Revenues (2)		85			83			2			2.4	%
Deferred Revenues—Percentage of Completion		(2	)		—			(2	)		n/m
Deferred Revenues—Other (3)		(2	)		(3	)		1			33.3	%
Vacation Ownership Sales and Services Revenues		160			159			1			0.6	%
Residential Sales and Services Revenues (4)		11			80			(69	)		(86.3	%)
Total Vacation Ownership & Residential Sales and Services Revenues		171			239			(68	)		(28.5	%)
Originated Sales Expenses (5)—Vacation Ownership Sales		55			53			(2	)		(3.8	%)
Other Expenses (6)		64			63			(1	)		(1.6	%)
Deferred Expenses—Percentage of Completion		(2	)		—			2			n/m
Deferred Expenses—Other		2			3			1			33.3	%
Vacation Ownership Expenses		119			119			—			—
Residential Expenses (4)		6			44			38			86.4	%
Total Vacation Ownership & Residential Expenses		125			163			38			23.3	%

(1) Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2) Includes resort income, interest income, and miscellaneous other revenues

(3) Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 978-605-25 and provision for loan loss

(4) For 2014 and 2013, includes $7 million and $74 million of revenues and $6 million and $44 million expenses associated with the St. Regis Bal Harbour residential project, respectively.

(5) Timeshare cost of sales and sales and marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(6) Includes resort, general and administrative, and other miscellaneous expenses

Note: Deferred revenue is calculated based on the Percentage of Completion (“POC”) of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.

n/m = not meaningful

23

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Systemwide⁽¹⁾ Statistics—Same Store

For the Six Months Ended June 30,

UNAUDITED

	Systemwide—Worldwide									Systemwide—North America									Systemwide—International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS
REVPAR ($)		121.51			115.71			5.0	%		128.77			121.64			5.9	%		113.28			108.94			4.0	%
ADR ($)		175.51			172.47			1.8	%		173.28			167.80			3.3	%		178.46			178.81			-0.2	%
Occupancy (%)		69.2	%		67.1	%		2.1			74.3	%		72.5	%		1.8			63.5	%		60.9	%		2.6
SHERATON
REVPAR ($)		103.64			98.44			5.3	%		109.33			103.63			5.5	%		97.43			92.76			5.0	%
ADR ($)		152.58			150.22			1.6	%		150.41			146.33			2.8	%		155.33			155.27			0.0	%
Occupancy (%)		67.9	%		65.5	%		2.4			72.7	%		70.8	%		1.9			62.7	%		59.7	%		3.0
WESTIN
REVPAR ($)		138.62			131.96			5.0	%		140.60			132.20			6.4	%		134.57			131.46			2.4	%
ADR ($)		188.69			184.65			2.2	%		185.50			178.42			4.0	%		195.90			198.99			-1.6	%
Occupancy (%)		73.5	%		71.5	%		2.0			75.8	%		74.1	%		1.7			68.7	%		66.1	%		2.6
ST. REGIS/LUXURY COLLECTION
REVPAR ($)		203.19			191.20			6.3	%		270.56			253.53			6.7	%		175.07			164.80			6.2	%
ADR ($)		311.51			304.06			2.5	%		364.47			343.41			6.1	%		284.81			282.94			0.7	%
Occupancy (%)		65.2	%		62.9	%		2.3			74.2	%		73.8	%		0.4			61.5	%		58.2	%		3.3
LE MERIDIEN
REVPAR ($)		119.93			117.99			1.6	%		211.70			199.71			6.0	%		105.98			105.54			0.4	%
ADR ($)		184.68			182.17			1.4	%		255.59			246.75			3.6	%		170.33			169.38			0.6	%
Occupancy (%)		64.9	%		64.8	%		0.1			82.8	%		80.9	%		1.9			62.2	%		62.3	%		-0.1
W
REVPAR ($)		229.45			219.14			4.7	%		223.76			215.03			4.1	%		240.19			226.91			5.9	%
ADR ($)		297.84			287.52			3.6	%		282.76			272.24			3.9	%		328.72			319.64			2.8	%
Occupancy (%)		77.0	%		76.2	%		0.8			79.1	%		79.0	%		0.1			73.1	%		71.0	%		2.1
FOUR POINTS
REVPAR ($)		77.14			74.36			3.7	%		83.65			79.77			4.9	%		68.12			66.89			1.8	%
ADR ($)		114.99			115.60			-0.5	%		115.94			113.86			1.8	%		113.40			118.58			-4.4	%
Occupancy (%)		67.1	%		64.3	%		2.8			72.1	%		70.1	%		2.0			60.1	%		56.4	%		3.7
ALOFT
REVPAR ($)		79.28			73.29			8.2	%		92.75			83.35			11.3	%		49.60			51.14			-3.0	%
ADR ($)		113.04			110.34			2.4	%		123.00			117.66			4.5	%		84.76			90.21			-6.0	%
Occupancy (%)		70.1	%		66.4	%		3.7			75.4	%		70.8	%		4.6			58.5	%		56.7	%		1.8

(1) Includes same store Owned, managed, and franchised hotels

24

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Worldwide Hotel Results—Same Store

For the Six Months Ended June 30,

UNAUDITED

	Systemwide (1)									Company Operated (2)
	2014			2013			Var. USD			2014			2013			Var. USD
TOTAL WORLDWIDE
REVPAR ($)		121.51			115.71			5.0	%		135.06			128.38			5.2	%
ADR ($)		175.51			172.47			1.8	%		196.66			193.37			1.7	%
Occupancy (%)		69.2	%		67.1	%		2.1			68.7	%		66.4	%		2.3
AMERICAS
REVPAR ($)		126.31			119.46			5.7	%		155.93			147.90			5.4	%
ADR ($)		172.81			167.42			3.2	%		210.12			202.56			3.7	%
Occupancy (%)		73.1	%		71.4	%		1.7			74.2	%		73.0	%		1.2
North America
REVPAR ($)		128.77			121.64			5.9	%		162.55			154.07			5.5	%
ADR ($)		173.28			167.80			3.3	%		213.64			205.82			3.8	%
Occupancy (%)		74.3	%		72.5	%		1.8			76.1	%		74.9	%		1.2
Latin America
REVPAR ($)		98.94			95.25			3.9	%		108.36			103.60			4.6	%
ADR ($)		166.28			162.24			2.5	%		178.46			173.33			3.0	%
Occupancy (%)		59.5	%		58.7	%		0.8			60.7	%		59.8	%		0.9
ASIA PACIFIC
REVPAR ($)		99.34			95.85			3.6	%		101.77			96.38			5.6	%
ADR ($)		157.26			162.17			-3.0	%		160.54			164.15			-2.2	%
Occupancy (%)		63.2	%		59.1	%		4.1			63.4	%		58.7	%		4.7
Greater China
REVPAR ($)		92.78			83.38			11.3	%		92.08			82.20			12.0	%
ADR ($)		153.71			157.24			-2.2	%		152.15			155.50			-2.2	%
Occupancy (%)		60.4	%		53.0	%		7.4			60.5	%		52.9	%		7.6
Rest of Asia Pacific
REVPAR ($)		108.03			112.42			-3.9	%		121.04			124.67			-2.9	%
ADR ($)		161.50			167.36			-3.5	%		175.16			177.11			-1.1	%
Occupancy (%)		66.9	%		67.2	%		-0.3			69.1	%		70.4	%		-1.3
EAME
REVPAR ($)		138.01			132.16			4.4	%		145.53			139.09			4.6	%
ADR ($)		212.12			205.69			3.1	%		219.51			212.64			3.2	%
Occupancy (%)		65.1	%		64.3	%		0.8			66.3	%		65.4	%		0.9
Europe
REVPAR ($)		145.61			137.29			6.1	%		160.17			150.14			6.7	%
ADR ($)		220.67			212.00			4.1	%		234.02			224.22			4.4	%
Occupancy (%)		66.0	%		64.8	%		1.2			68.4	%		67.0	%		1.4
Africa & Middle East
REVPAR ($)		122.66			121.78			0.7	%		122.97			121.98			0.8	%
ADR ($)		194.10			192.63			0.8	%		195.21			193.59			0.8	%
Occupancy (%)		63.2	%		63.2	%		0.0			63.0	%		63.0	%		0.0

(1) Includes same store Owned, managed, and franchised hotels

(2) Includes same store Owned and managed hotels

25

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotel Results—Same Store

For the Six Months Ended June 30,

UNAUDITED

	Worldwide									North America									International
	2014			2013			Var. USD			2014			2013			Var. USD			2014			2013			Var. USD
TOTAL HOTELS	38 Hotels									12 Hotels									26 Hotels
REVPAR ($)		159.53			152.57			4.6	%		154.77			151.51			2.2	%		163.59			153.47			6.6	%
ADR ($)		223.31			216.10			3.3	%		205.87			200.28			2.8	%		239.70			231.54			3.5	%
Occupancy (%)		71.4	%		70.6	%		0.8			75.2	%		75.6	%		-0.4			68.2	%		66.3	%		1.9
Total Revenue*		618,135			597,580			3.4	%		282,669			278,241			1.6	%		335,466			319,338			5.1	%
Total Expenses*		485,224			478,167			-1.5	%		225,004			223,864			-0.5	%		260,219			254,303			-2.3	%

* Revenues & Expenses above are represented in ‘000’s

26

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Management Fees, Franchise Fees and Other Income

For the Six Months Ended June 30,

UNAUDITED ($ millions)

	Worldwide
	2014		2013		Variance			% Variance
Management Fees
Base Fees		184		172		12			7.0	%
Incentive Fees		97		89		8			9.0	%
Total Management Fees		281		261		20			7.7	%
Franchise Fees		115		104		11			10.6	%
Total Management & Franchise Fees		396		365		31			8.5	%
Other Management & Franchise Revenues (1)		101		76		25			32.9	%
Total Management & Franchise Revenues		497		441		56			12.7	%
Other		11		12		(1	)		(8.3	)%
Management Fees, Franchise Fees and Other Income		508		453		55			12.1	%

(1) Other Management & Franchise Revenues primarily includes the amortization of the deferred gains of approximately $43 million and $45 million in 2014 and 2013, respectively, resulting from the sales of hotels subject to long-term management contracts and termination fees.

27

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership & Residential Revenues and Expenses

For the Six Months Ended June 30,

UNAUDITED ($ millions)

	2014			2013			$ Variance			% Variance
Originated Sales Revenues (1) — Vacation Ownership Sales		163			162			1			0.6	%
Other Sales and Services Revenues (2)		172			171			1			0.6	%
Deferred Revenues — Percentage of Completion		(16	)		(2	)		(14	)		n/m
Deferred Revenues — Other (3)		—			5			(5	)		(100.0	%)
Vacation Ownership Sales and Services Revenues		319			336			(17	)		(5.1	%)
Residential Sales and Services Revenues (4)		26			212			(186	)		(87.7	%)
Total Vacation Ownership & Residential Sales and Services Revenues		345			548			(203	)		(37.0	%)
Originated Sales Expenses (5) — Vacation Ownership Sales		121			116			(5	)		(4.3	%)
Other Expenses (6)		128			127			(1	)		(0.8	%)
Deferred Expenses — Percentage of Completion		(10	)		(1	)		9			n/m
Deferred Expenses — Other		5			5			—			—
Vacation Ownership Expenses		244			247			3			1.2	%
Residential Expenses (4)		9			115			106			92.2	%
Total Vacation Ownership & Residential Expenses		253			362			109			30.1	%

(1) Timeshare sales revenue originated at each sales location before deferrals of revenue for U.S. GAAP reporting purposes

(2) Includes resort income, interest income, and miscellaneous other revenues

(3) Includes deferral of revenue for contracts still in rescission period, contracts that do not yet meet the requirements of ASC 978-605-25 and provision for loan loss

(4) For 2014 and 2013, includes $20 million and $203 million of revenues and $9 million and $115 million expenses associated with the St. Regis Bal Harbour residential project, respectively.

(5) Timeshare cost of sales and sales and marketing expenses before deferrals of sales expenses for U.S. GAAP reporting purposes

(6) Includes resort, general and administrative, and other miscellaneous expenses

Note: Deferred revenue is calculated based on the Percentage of Completion (“POC”) of the project. Deferred expenses, also based on POC, include product costs and direct sales and marketing costs only. Indirect sales and marketing costs are not deferred per ASC 978-720-25 and ASC 978-340-25.

n/m = not meaningful

28

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Owned Hotels without Comparable Results & Other Selected Items

As of June 30, 2014

UNAUDITED ($ millions)

Owned Hotels without comparable results in 2014 and 2013:

Hotel	Location
Element Denver Park Meadows	Denver, CO
Sheraton Steamboat Resort	Steamboat Springs, CO
The Gritti Palace, Venice	Venice, Italy
The St. Regis New York	New York, NY
The Westin Excelsior, Florence	Florence, Italy
The Westin Maui Resort & Spa, Ka’anapali	Maui, HI

Owned Hotels sold in 2014 and 2013:

Hotel	Location
Aloft Lexington	Lexington, MA
Aloft San Francisco Airport	San Francisco, CA
Aloft Tucson University	Tucson, AZ
Element Lexington	Lexington, MA
The Park Lane Hotel	London, England
The St. Regis Bal Harbour Resort	Miami Beach, FL
The Westin San Francisco Airport	San Francisco, CA
W New Orleans	New Orleans, LA
W New Orleans—French Quarter	New Orleans, LA

Revenues and Expenses Associated with Hotels Sold in 2014 and 2013: ⁽¹⁾ 

	Q1		Q2		Q3		Q4		Full Year
Hotels Sold in 2013:
2013
Revenues	$	19	$	12	$	12	$	4		$    47
Expenses (excluding depreciation)	$	14	$	9	$	8	$	3		$    34
Hotels Sold in 2014:
2014
Revenues	$	16	$	3		—		—		$    19
Expenses (excluding depreciation)	$	11	$	2		—		—		$    13
2013
Revenues	$	28	$	24	$	22	$	28		$  102
Expenses (excluding depreciation)	$	20	$	19	$	18	$	20		$    77

(1) Results consist of two hotels sold in 2014, one leased hotel converted to a managed hotel in 2014, and six hotels sold in 2013.

These amounts are included in the revenues and expenses from owned, leased and consolidated joint venture hotels in the statements of income for 2014 and 2013.

29

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Capital Expenditures

For the Three and Six Months Ended June 30, 2014

UNAUDITED ($ millions)

	Q2			YTD
Maintenance Capital Expenditures: (1)
Owned, Leased and Consolidated Joint Venture Hotels		11			24
Corporate/IT		35			66
Subtotal		46			90
Net capital expenditures for Vacation Ownership inventory (2)		(2	)		(7	)
Development Capital		41			90
Total Capital Expenditures		85			173

(1) Maintenance capital expenditures include improvements that extend the useful life of the asset.

(2) Represents gross inventory capital expenditures of $15 million and $24 million in the three and six months ended June 30, 2014, less cost of sales of $17 million and $31 million in the three and six months ended June 30, 2014.

30

STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

2014 Divisional Hotel Inventory Summary by Ownership by Brand

As of June 30, 2014

	Americas				North America				Latin America				Asia Pacific				Greater China				Rest of Asia				Europe, Africa & Middle East				Europe				Africa & Middle East				TOTAL
	Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms		Hotels		Rooms
Owned
Sheraton		11		6,281		6		3,585		5		2,696		2		854		—		—		2		854		3		402		3		402		—		—		16		7,537
Westin		5		2,734		2		1,832		3		902		1		243		—		—		1		243		3		650		3		650		—		—		9		3,627
Four Points		1		177		1		177		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		177
W		1		509		1		509		—		—		—		—		—		—		—		—		2		665		2		665		—		—		3		1,174
Luxury Collection		2		824		1		643		1		181		—		—		—		—		—		—		5		577		5		577		—		—		7		1,401
St. Regis		2		498		2		498		—		—		1		160		—		—		1		160		2		261		2		261		—		—		5		919
Le Meridien		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Aloft		1		136		1		136		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		136
Element		1		123		1		123		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		123
Other		1		135		1		135		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		135
Total Owned		25		11,417		16		7,638		9		3,779		4		1,257		—		—		4		1,257		15		2,555		15		2,555		—		—		44		15,229
Managed & UJV
Sheraton		50		28,175		34		25,090		16		3,085		89		34,235		60		26,027		29		8,208		72		20,184		41		11,860		31		8,324		211		82,594
Westin		56		29,064		53		28,178		3		886		35		11,834		18		6,431		17		5,403		15		4,697		11		3,748		4		949		106		45,595
Four Points		3		426		—		—		3		426		28		8,492		21		6,395		7		2,097		12		2,270		4		499		8		1,771		43		11,188
W		28		8,516		26		8,083		2		433		9		2,393		3		1,115		6		1,278		5		937		4		495		1		442		42		11,846
Luxury Collection		11		1,938		4		1,648		7		290		10		1,983		4		811		6		1,172		27		5,261		22		3,671		5		1,590		48		9,182
St. Regis		12		2,347		10		2,038		2		309		8		2,029		5		1,378		3		651		7		1,536		3		369		4		1,167		27		5,912
Le Meridien		4		469		3		309		1		160		26		7,383		9		3,144		17		4,239		44		12,814		16		5,215		28		7,599		74		20,666
Aloft		4		614		—		—		4		614		10		2,606		7		1,636		3		970		4		943		3		535		1		408		18		4,163
Element		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Other		1		151		1		151		—		—		—		—		—		—		—		—		1		210		1		210		—		—		2		361
Total Managed & UJV		169		71,700		131		65,497		38		6,203		215		70,955		127		46,937		88		24,018		187		48,852		105		26,602		82		22,250		571		191,507
Franchised
Sheraton		175		51,192		163		48,172		12		3,020		13		6,124		3		1,836		10		4,288		18		4,715		16		4,312		2		403		206		62,031
Westin		74		23,017		69		21,490		5		1,527		8		2,531		1		288		7		2,243		4		1,525		4		1,525		—		—		86		27,073
Four Points		125		19,491		116		18,154		9		1,337		10		1,577		1		126		9		1,451		7		1,085		7		1,085		—		—		142		22,153
W		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Luxury Collection		11		2,108		8		1,657		3		451		10		3,069		—		—		10		3,069		12		1,783		12		1,783		—		—		33		6,960
St. Regis		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Le Meridien		13		3,157		12		3,046		1		111		5		1,209		1		160		4		1,049		3		788		3		788		—		—		21		5,154
Aloft		60		9,181		59		8,878		1		303		5		731		—		—		5		731		—		—		—		—		—		—		65		9,912
Element		10		1,670		10		1,670		—		—		—		—		—		—		—		—		—		—		—		—		—		—		10		1,670
Other		1		305		1		305		—		—		—		—		—		—		—		—		—		—		—		—		—		—		1		305
Total Franchised		469		110,121		438		103,372		31		6,749		51		15,241		6		2,410		45		12,831		44		9,896		42		9,493		2		403		564		135,258
Systemwide
Sheraton		236		85,648		203		76,847		33		8,801		104		41,213		63		27,863		41		13,350		93		25,301		60		16,574		33		8,727		433		152,162
Westin		135		54,815		124		51,500		11		3,315		44		14,608		19		6,719		25		7,889		22		6,872		18		5,923		4		949		201		76,295
Four Points		129		20,094		117		18,331		12		1,763		38		10,069		22		6,521		16		3,548		19		3,355		11		1,584		8		1,771		186		33,518
W		29		9,025		27		8,592		2		433		9		2,393		3		1,115		6		1,278		7		1,602		6		1,160		1		442		45		13,020
Luxury Collection		24		4,870		13		3,948		11		922		20		5,052		4		811		16		4,241		44		7,621		39		6,031		5		1,590		88		17,543
St. Regis		14		2,845		12		2,536		2		309		9		2,189		5		1,378		4		811		9		1,797		5		630		4		1,167		32		6,831
Le Meridien		17		3,626		15		3,355		2		271		31		8,592		10		3,304		21		5,288		47		13,602		19		6,003		28		7,599		95		25,820
Aloft		65		9,931		60		9,014		5		917		15		3,337		7		1,636		8		1,701		4		943		3		535		1		408		84		14,211
Element		11		1,793		11		1,793		—		—		—		—		—		—		—		—		—		—		—		—		—		—		11		1,793
Other		3		591		3		591		—		—		—		—		—		—		—		—		1		210		1		210		—		—		4		801
Vacation Ownership		14		7,576		13		6,996		1		580		—		—		—		—		—		—		—		—		—		—		—		—		14		7,576
Total Systemwide		677		200,814		598		183,503		79		17,311		270		87,453		133		49,347		137		38,106		246		61,303		162		38,650		84		22,653		1,193		349,570

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STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

Vacation Ownership Inventory Pipeline

As of June 30, 2014

UNAUDITED

	# Resorts						# of Units (1)
Brand	Total (2)		In Operations		In Active Sales		Completed  (3)		Pre-sales/ Development  (4)		Future Capacity  (5),(6)		Total at Buildout
Sheraton		7		7		6		3,079		—		712		3,791
Westin		9		9		9		1,606		92		21		1,719
St. Regis		2		2		—		56		—		—		56
The Luxury Collection		1		1		—		6		—		—		6
Unbranded		2		2		1		99		—		—		99
Total SVO, Inc.		21		21		16		4,846		92		733		5,671
Unconsolidated Joint Ventures (UJV’s)		1		1		1		198		—		—		198
Total including UJV’s		22		22		17		5,044		92		733		5,869
Total Intervals Including UJV’s (7)								262,288		4,784		38,116		305,188

(1) Lockoff units are considered as one unit for this analysis.

(2) Includes resorts in operation, active sales or future development.

(3) Completed units include those units that have a certificate of occupancy.

(4) Units in Pre-sales/Development are in various stages of development (including the permitting stage), most of which are currently being offered for sale to customers.

(5) Based on owned land and average density in existing marketplaces

(6) Future units indicated above include planned timeshare units on land owned by the Company or applicable UJV that have received all major governmental land use approvals for the development of timeshare. There can be no assurance that such units will in fact be developed and, if developed, the time period of such development (which may be more than several years in the future). Some of the projects may require additional third-party approvals or permits for development and build out and may also be subject to legal challenges as well as a commitment of capital by the Company. The actual number of units to be constructed may be significantly lower than the number of future units indicated.

(7) Assumes 52 intervals per unit.

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