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Caesars Unit Wins South African Gaming License

GREENWICH, Conn. -– Caesars World, Inc., a wholly owned subsidiary of Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT), has been awarded one of four unrestricted gaming licenses for the Johannesburg/Pretoria metropolitan area in South Africa.

The license from the Gauteng Gambling and Betting Board is for the construction and operation of the Caesars-Gauteng Casino and Resort, which is expected to be located adjacent to the Johannesburg International Airport. The project is expected to cost about 865 million Rand (approximately $175 million). Construction is anticipated to begin in the next three months with the opening of temporary gaming facilities anticipated for late in 1998. The project is expected to be completed in the fourth quarter of 1999.

The Project will be owned by a consortium including a black empowerment group, Global Resorts SA (Pty) LTD., a regional gaming company in Africa, and Caesars World, Inc. Caesars expects to invest approximately $20 million dollars for 25% of the equity capital. Caesars and Global will be equally sharing the management fees generated from the project.

"The Johannesburg metropolitan area, with a total population in excess of six million, is anticipated to generate the highest gaming revenues on the African continent," said Mr. Sternlicht. "Within the next decade, the gaming revenues for the area could exceed one billion dollars annually," said Starwood Chairman and CEO Barry S. Sternlicht.

The completed project will promote the classical Greco-Roman architecture originated by the renowned Caesars Palace in Las Vegas. The facilities will include approximately 70,000 square feet of casino area with 1500 slots and 50 tables, over 4,000 parking bays, a two hundred (200) room hotel with an international quality health club and spa, four restaurants plus a buffet and separate food court, extensive retail areas for native arts and crafts, jewelry design and manufacturing, theaters, and entertainment venues.

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