New Ballroom, Premiere Restaurant Offerings and Complete Interior Redesign Highlight $70 Million Master Plan

SCOTTSDALE, Ariz. (March 11, 2008) – Responding to the needs of a changing and increasingly diverse travel audience, The Phoenician is putting a contemporary design on the luxury resort experience. Introducing a variety of distinctive guest options within a more relaxed, residential setting, the 250-acre property will serve as the definitive resort destination. The $70 million project, which launched in fall 2006, encompasses all 643 guestrooms; the main lobby and tea court; retail and restaurant venues; as well as an innovative family activity center; and culminates in June 2008 with the groundbreaking for a 42,000 square-foot conference facility and ballroom.

Scheduled to open in October 2009, the new $40 million structure will be located at the southeast base of Camelback Mountain, providing dramatic views of the surrounding Sonoran landscape through skylights and high clerestory windows. The ballroom, which comprises 15,000 square feet of the overall complex, will have the ability to be subdivided into seven separate function areas, and will be complemented by a veranda for outdoor breakout sessions and receptions. The lobby foyer entry will seamlessly join the ballroom to the resort’s pre-existing main meeting space.

“Recent trends indicate a need for a more casual, yet elegant resort environment where greater choices allow guests of all ages to personalize their experiences,” said Managing Director Mark Vinciguerra. “It’s our ability to respond to the ever-changing travel dynamic that has brought millions of guests to The Phoenician since 1988. Today, we answer the call once again by providing the discerning traveler with a true luxury resort destination alternative.”

Creating the majority of The Phoenician’s new classic, modern look and ambiance is Cádiz Design Studio of Huntington Beach, Calif., under the direction of Lorraine Francis.

Other contemporary innovations include:

Restaurants – Following the enhancements to both venue and menu at the Southwestern-style Windows on the Green in 2006, a $6 million renovation begins in May for the panoramic fifth-floor area currently occupied by Mary Elaine’s. After nearly 20 years, the decorated, modern French restaurant will be closing its doors following dinner service on Saturday, April 5. Through a partnership between The Phoenician’s parent company, Starwood Hotels & Resorts Worldwide, and Culinary Concepts by Jean-Georges, a multi-concept restaurant and licensing business, a new, high-end, high-energy restaurant will be introduced. J&G Steakhouse, featuring premium meats and fish, is scheduled to debut in late 2008. Incorporating an individually designed dinner menu, the restaurant will offer a distinctive selection of appetizers and side dishes, as well as sauces and condiments from around the world. The 250-seat establishment, which will include a bar and terrace, will integrate the stunning valley views into its elegant, soft modern design by David Rockwell, utilizing various wood and stone material throughout the space. Jean-Georges Vongerichten, a world-renowned chef and businessman, has established nearly 20 restaurants in the United States, the United Kingdom, the Bahamas and Shanghai, offering a variety of award-winning cuisines. His resume includes Jean-Georges in New York, a AAA Five Diamond and Mobil Five Star restaurant featuring Asian inspired French fare; Spice Market in New York, specializing in the flavorful street food of Southeast Asia and Prime Steakhouse in The Bellagio Las Vegas.

The Terrace, currently offering traditional American dishes, will bring even more diversity to the dining experience when it reopens in May as Il Terrazzo, an Italian restaurant featuring authentic national cuisine, including homemade pastas and breads. The AAA Four Diamond establishment will also undergo a $1 million refurbishment, creating distinct divisions of space within the restaurant. New furniture and draping will offer a classic boutique atmosphere, complemented by warm architectural details such as upholstered panels, polished nickel and contemporary chandeliers. Woven recycled fiber and teak tables will define the inviting al fresco setting. With the addition of cozy living room furniture, The Bar at Il Terrazzo will serve as a central meeting/gathering place for both guests and visitors. The restaurant’s upper level will also be re-configured as a more casual dining area, and named Il Terrazzo Di Luce (Terrace “Light”). Offering a convenient continental breakfast and a variety of specialty coffees, along with the restaurant’s full menu throughout the day, this section will feature long, tall, shared tables for those guests on the go. Il Terrazzo will continue the integration of the pleasant, earthy tones of browns and blues found throughout the resort.

In addition, The Café and Ice Cream Parlor will be revamping its menu with a variety of American favorites.

All four restaurants will offer an entertaining, lively and welcoming dining atmosphere, while maintaining The Phoenician’s AAA Five Diamond standards.

Family Activity Center – A $500,000 retrofit to The Tennis Garden building this spring will create a home for The Phoenician’s new Family Activity Center. The facility will include a theater complete with a 72-inch-wide cinema screen and surround-sound speaker system. The center will also feature a 60-inch plasma television and the popular Nintendo Wii interactive game system.

The Canyon Suites – Arizona’s first boutique resort within a resort. A $5.5 million redesign completed in spring 2007 combined classic textures and warmer hues with sculptured furnishings and plush fabrics, producing a more sophisticated, timeless feel throughout the 60-room hotel. Offering the rich splendor, services and amenities of The Phoenician, the AAA Five Diamond Canyon Suites also provides added privacy and numerous signature features to create a more intimate, personalized experience. Canyon Ambassadors – approximately one to every 10 guestrooms – greet each visitor upon arrival, and are well versed in their preferences. Other exclusive Canyon Suites features include an infinity pool, afternoon wine tastings and chauffeur-driven Mercedes.

The Phoenician Guestrooms, Main Lobby and Tea Court – This $12 million project, completed in January, included the total renovation of all 583 Phoenician guestrooms. An extension of the more inviting, soothing ambiance created within The Canyon Suites, these three areas also incorporate the indigenous tones of the rich Sonoran desert throughout their carpeting and fabrics. Guestroom additions include furnishings more residential in feel, as well as classic Southwestern artwork.

The Phoenician Retail Arcade – A refit completed in January included the debut of Attitude, a swimwear and sleepwear shop. In addition, contemporary couture and designer collections characteristic of trend-setting boutiques have been introduced in the men’s and women’s apparel shops.

The Phoenician Residences – Presenting yet another alternative for enjoying The Phoenician’s all-encompassing luxury resort experience is The Phoenician Residences. Through a $5 million renovation, the property’s villa complex has been transformed into a fractional ownership community. Initially consisting of seven exquisite units, these unique two- and three-bedroom floor plans range from 1,400 to 2,400 square feet. Select features offered include rich hardwood floors, a travertine fireplace, a private plunge pool, outdoor summer kitchen with gas grill and LCD televisions.

Located at the base of Camelback Mountain, the 250-acre Phoenician offers two exquisite experiences – a 583-room AAA Five Diamond resort hotel and an exclusive Five Diamond boutique hotel, The Canyon Suites — at one magnificent destination. The property features elegant, newly redesigned accommodations, distinctive and tantalizing cuisine across a variety of restaurants, 27 holes of championship golf, 11 lighted tennis courts, The Centre for Well-Being spa complex, numerous boutique shops and a $25 million art collection. In addition to these offerings, the stylish 60-room Canyon Suites provides more intimate surroundings and enhanced services, creating an atmosphere of uncompromising splendor. Both The Phoenician and The Canyon Suites are owned and operated by Starwood Hotels & Resorts Worldwide, Inc., as part of The Luxury Collection. For additional information, please call (480) 941-8200; (800) 888-8234.