WHITE PLAINS, NY, August 30, 2007. Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT), today announced that W Hotels will open its first property in Indonesia in 2009. W Retreat & Spa–Bali will be the brand’s fourth retreat in the world, following the award-winning W Retreat & Spa-Maldives, which opened in September 2006, and the impending openings of W Retreat & Spa-Vieques, scheduled to open in late 2008, and W Retreat & Residences-Koh Samui, scheduled to open in 2009.

The newly built W Retreat & Spa-Bali will be located in the Seminyak area on the paradise isle of Bali, featuring 232 rooms, including 80 luxury villas. Developed by PT Dua Cahaya Anugrah (“DCA”), W Retreat & Spa–Bali is situated in the southern seas with a story-book setting of sun-drenched beaches, rustic villages, fertile plains and sculptured rice terraces. The retreat’s 157 guest rooms will provide direct ocean views and its 80 villas will reflect designs of a traditional Balinese courtyard featuring a private pool for guests to enjoy a personal refreshing experience.

“Following the success of our first W Retreat & Spa, the award-winning W Maldives, W Retreat & Spa–Bali is a terrific extension of our brand’s growth in the Asia Pacific region,” said Ross Klein, President, Starwood’s Luxury Brands Group. “The rich and deeply spiritual culture of Bali, combined with the cosmopolitan style and energy of Seminyak, provides a perfect setting for the newest edition to our Retreat & Spa product offering. With the announcement of W Retreat & Spa-Bali, the W brand continues to extend beyond the boundaries of everyday travel, offering a magical mix of sexy destinations and sublime design.”

“We are very excited to partner with Starwood on this project and to introduce the W brand to Bali. We feel that the W signature design and cosmopolitan ambience are a perfect fit with our vision for the project,” said Magda Hutagalung from DCA. “Its unrivaled location in Seminyak will set a new benchmark for luxury accommodation in Bali,” added Zamzam Reza from DCA.

"We are thrilled with the signing of W Retreat & Spa-Bali, marking the entry of the W brand into Bali, undeniably one of the top-rated resort destinations in the world,” said Miguel Ko, President, Starwood Hotels & Resorts, Asia Pacific. "The W Retreat & Spa - Bali will be a unique alternative to the more traditional Bali resorts. Located on a seven hectare absolute beachfront site in Seminyak, the resort will be within walking distance to Bali’s most trendy boutiques, galleries, restaurants and clubs. This addition of this retreat, coupled with The Luxury Collection, Le Meridien and Westin properties will certainly strengthen our presence in Bali,” added Ko.

The resort will offer a uniquely W dining experience with two gourmet eateries – W Kitchen and the retreat’s waterfront signature restaurant – a poolside destination bar and the W Living Room. In addition to W The Store, the brand’s retail component, a spa, pool and health center, guests will be able to indulge in the W brand’s signature Whatever/Whenever concierge service that provides guests with whatever they want, whenever they want it.

Bali is one of the 17,508 islands which make up of the archipelagic Republic of Indonesia. For the first half of the year, foreign arrivals to Indonesia neared the 750,000 mark, hitting 745,949 tourists, a figure well on the way to targeted arrivals of 1.3 -1.5 million for the year. Comparing the first six months of 2007 with the same period in 2006, Bali's arrivals increased an astounding 35 percent.