SHANGHAI LIANGHUA ENTERPRISES AND DISCOVERY HOTEL GROUP BEGIN CONVERSION OF CHINA’S FIRST FOUR POINTS HOTEL BY SHERATON

NEW FOUR POINTS HOTEL BY SHERATON IN PUDONG, SHANGHAI

TO OPEN IN EARLY 2001

SINGAPORE, April 14, 2000 – Starwood Hotels & Resorts Worldwide, Inc. has announced the signing of its first Four Points Hotel by Sheraton in China - Four Points Hotel, Pudong, Shanghai.

Four Points Hotel, Pudong is a joint venture of the Discovery Hotel Group and Shanghai Lianghua Enterprises Company Limited (600817). The development will be a conversion of the Liangyou Building in Shanghai's Pudong District and will re-open as Four Points Hotel, Pudong in early 2001. Starwood Hotels & Resorts had earlier signed a Strategic Alliance Agreement with Discovery Hotel Group in 1999 to launch Four Points hotels in China.

“The challenge for business travelers in China is to find value-priced hotels which offer needed business services and consistent, quality accommodations. Four Points Hotels by Sheraton is the ideal answer, and we are very pleased to begin our expansion in the People’s Republic of China with this strategically located property in Pudong, Shanghai,” said John Wong, President and CEO of Discovery Hotel Group Limited.

The new Four Points Hotel, Pudong, Shanghai will expand the existing facility from 50 to 312 “smart” rooms, utilizing the latest computer technology to monitor heat, air conditioning, lighting, music, television and other amenities. The hotel is located in the heart of Pudong’s Lujiazhui Financial and Trade Development Zone and will offer hotel transportation to and from Shanghai’s new Pudong International Airport just 20 minutes away.

“We are very fortunate to be working with Shanghai Lianghua Enterprises, one of Shanghai’s fastest growing public companies. Kevin Long, President of Shanghai Lianghua Enterprises, and his company shares our vision that Four Points Hotels will create a critically needed niche in China’s hotel market. We hope to work with Mr. Long and his company to develop further Four Points Hotels throughout China,” continued Mr. Wong.

“After much analysis and due diligence, we decided that the Four Points Hotel concept was the best choice for re-positioning of our existing hotel,” stated Mr. Long. “The partnership between Lianghua Enterprises Company, Starwood Hotels and Resorts, and Discovery Hotel Group creates a synergy whereby each company assists each other in creating a hotel that is certain to be successful,” continued Mr. Long.

Four Points Hotel, Pudong marks the entry of the Four Points brand in China. Future Four Points Hotels are planned in the traditional gateway cities of China, such as Beijing and Guangzhou. The emerging business and manufacturing centers in regional hub cities, such as Chongqing, Wuhan and Dalian, will also be important target areas of the Four Points expansion plan in China. “Our research indicates that there are both geographic and economic opportunities to provide quality and economical lodging to the mid-priced market in China,” said John Wong, President and CEO of Discovery Hotel Group Limited. “There are currently few or no alternatives for such mid-priced international quality accommodation for business travelers in many regional hub cities,” he added.

“We are very excited to be working with Shanghai Lianghua Enterprises and Discovery Hotel Group to introduce this new top-ranked mid-priced hotel brand to China, a large and growing market for mid-price accommodation. Our partners are among the most forward-looking companies in China and we are honored that they have selected Four Points Hotels as the brand for their hotel developments in China” said Ted Teng, President, Asia-Pacific Division, Starwood Hotels & Resorts Worldwide, Inc. " We expect to have at least 10 Four Points Hotels, operating and under development, in Asia-Pacific by 2001" added Teng.

With China’s imminent entry into the World Trade Organization (WTO), China will continue to develop as an economic powerhouse and, apart from the multinational corporations, many small and mid-sized businesses are interested in doing business in China. These business travelers require consistent quality, access to business services, and assistance with the forms and processes of doing business in China. “Four Points Hotels will function as business partners to these travelers, making their China ventures that much more cost-effective and successful,” said John Wong.

Four Points Hotels was recently voted among the top “Mid-Scale Hotel Chains” in the United States by readers of Business Travel News. Business Travel News is a leading trade publication for corporate travel planners. Four Points Hotels was ranked ahead of several competitors in its category, including Courtyard by Marriott and Ramada.

Four Points Hotels was launched in 1995 by Sheraton as a mid-priced hotel brand offering a full-service hotel experience. Designed for business and leisure travelers seeking complete and consistent service, Four Points Hotels has become the world's fastest growing brand and its portfolio now includes more than 120 properties in ten countries. In Asia-Pacific, Four Points hotels have been announced in Taiwan (Four Points Hotel, Chung-Ho opens in April 2001) and Australia (Four Points Hotel, Sydney; Four Points Hotel, Geelong opens in August 2000; Four Points Hotel, Port Macquarie opens in July 2001).

Four Points Hotels offer consistent, full-service amenities at properties around the world. All hotels feature an on-premise restaurant serving three meals a day; room service; meeting rooms with full-service catering capabilities; fitness center and most hotels have a swimming pool. Four Points Hotels feature guest rooms with a comfortable workspace and a large desk; telephone with dataport; remote control television; complimentary newspaper delivered to each room.

Four Points Hotel, Pudong will welcome members of the Starwood Preferred Guest program – winner of five of the nine 1999 Freddies Award, including Top Hotel Frequent Guest Program of the Year, as voted by frequent travelers and also rated the #1 Hotel Loyalty Program by USA Today. Starwood Preferred Guest is one of the easiest, most flexible and rewarding hotel loyalty programs. It features innovative and breakthrough features such as no blackout dates, no point expiration dates for active members, plus instant awards and on-line redemption through the program’s web site at www.preferredguest.com

Shanghai Lianghua Enterprises Company Limited is a publicly listed company in Shanghai, China. Its current businesses include real estate investment, development, department stores and hi-tech ventures. It is currently one of the fastest growing public companies in Shanghai, China.

Discovery Hotel Group Limited operates from offices in Los Angeles and Shanghai. The company was founded by John W. Wong, a Los Angeles-based hotel executive who also owns and operates a Four Points Hotel in Ventura, California. In addition to operating hotels in China, the Starwood and Discovery Hotel Group alliance includes the establishment of a hotel management training program in Shanghai. Additional information on Discovery Hotel Group Limited can be located on the worldwide web at www.dhgchina.com

Starwood Hotels & Resorts Worldwide, Inc., through its St. Regis, Luxury Collection, Westin, Sheraton, Four Points and W brands, is one of the leading hotel and leisure companies in the world with more than 700 hotels and resorts in over 80 countries and 120,000 employees at its owned and managed properties. Additional information on Four Points Hotels can be located on the worldwide web at www.fourpoints.com