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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	September 21, 2006
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  	Starwood Hotels & Resorts Worldwide, Inc.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Maryland
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  	1-7959
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  	52-1193298
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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  	1111 Westchester Avenue, White Plains, New York
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  	10604
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  _________________________________<BR>
  	(Address of principal executive offices)
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  	&nbsp;
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  ___________<BR>
  	(Zip Code)
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  	Registrant&#146;s telephone number, including area code:
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  	&nbsp;
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  	(914) 640-8100
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  <FONT SIZE="2">
  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:</FONT>
  </P>
  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  	Item 1.01 Entry into a Material Definitive Agreement.
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  On September 27, 2006, the Compensation Committee of Starwood Hotels & Resorts Worldwide, Inc. (the "Corporation") named Matthew A. Ouimet a participant under the Annual Incentive Plan for Certain Executives and established a performance threshold for 2006 bonus compensation.  The 2006 performance threshold is based on the Corporation achieving certain levels of EBITDA.  If the performance threshold is achieved, Mr. Ouimet would be eligible to receive a bonus under the plan.  Since Mr. Ouimet started his employment with the Corporation on August 1, 2006, the performance period for Mr. Ouimet is from September 1, 2006 to December 31, 2006.<br><br><br>On September 21, 2006, the Corporation and Matthew A. Ouimet executed an employment agreement (the "Agreement") relating to Mr. Ouimet&#x2019;s appointment as President, Hotel Operations of the Corporation, which was previously disclosed.<br><br>The Agreement has an initial term through March 1, 2010, with automatic one year renewals commencing on such date, unless either party provides the other with at least six months prior written notice that the term shall not be extended.  Under the Agreement, Mr. Ouimet&#x2019;s annual base salary is $700,000 and he will be eligible to receive a target bonus of 100% of base salary.  For 2006, Mr. Ouimet will be eligible to receive the full target bonus. <br><br>The Agreement provides that Mr. Ouimet&#x2019;s equity grant for 2007 will have a value of $2,500,000, comprised of restricted stock units and/or options in the same proportion of grants made to other senior executives of the Corporation.  The restricted stock units awarded will vest in full on the third anniversary of their award.  The exercise price for the options will be the fair market value of the Corporation&#x2019;s common stock on the date of grant and the options shall become exercisable as to one fourth of the number of shares subject thereto on each anniversary of the date of grant.  <br><br>The Agreement provides that Mr. Ouimet is entitled to participate in certain benefit plans of the Corporation as well as to receive certain travel and other benefits in connection with his services to the Corporation.   The Agreement also provides that Mr. Ouimet will relocate to the vicinity of the Corporation&#x2019;s headquarters in New York/Connecticut by December 31, 2007 and that he will be entitled to up to $1,500,000 in reimbursement for travel to and from his California home for the first 12 months of his employment.  The Corporation will also provide Mr. Ouimet with relocation benefits associated with the sale of his home in California.  If Mr. Ouimet elects to defer the sale of his home for up to one year, the Corporation will, subject to certain limitations, reimburse Mr. Ouimet if the appraised value of his home after the deferral is less than the initial appraised value of his home done as soon as practicable following the commencement of his employment.  Mr. Ouimet will also be entitled to a tax gross up for these reimbursements.<br><br>If Mr. Ouimet&#x2019;s employment is terminated by the Corporation other than for cause or by Mr. Ouimet for good reason during the first two years of employment, the Corporation shall pay Mr. Ouimet as a severance benefit base salary and target bonus through July 31, 2009 and provide welfare benefits for that term.  If Mr. Ouimet&#x2019;s employment is terminated by the Corporation other than for cause or by Mr. Ouimet for good reason after the first two years of employment, the Corporation shall pay Mr. Ouimet as a severance benefit (i) his base salary for 12 months, (ii) his target bonus for one year and (iii) 50% of his target bonus pro rated for the number of days elapsed in the calendar year to the date of termination. Mr. Ouimet would also receive his medical benefits coverage for twelve months following his termination.<br><br>The Agreement is attached as Exhibit 10.1 hereto and incorporated herein by reference. <br><br><br>
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  	SIGNATURES
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  	Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
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  	&nbsp;
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  	Starwood Hotels & Resorts Worldwide, Inc.
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  	&nbsp;&nbsp;
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  <I>
  	September 27, 2006
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  	By:
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  	&nbsp;
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  <I>
  	Jared T. Finkelstein
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  	&nbsp;
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  <I>
  	Name: Jared T. Finkelstein
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  <I>
  	Title: Assistant Secretary
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  	Exhibit&nbsp;Index
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  	Exhibit No.
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  	&nbsp;
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  	Description
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  	10.1
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  	&nbsp;
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  Employment Agreement between Starwood Hotels & Resorts Worldwide, Inc. and Matthew A. Ouimet.
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_15193.htm", "description": "LIVE FILING", "secsgml_size_bytes": 13549}]
metadata_filer: {"company-data": {"conformed-name": "STARWOOD HOTEL & RESORTS WORLDWIDE INC", "cik": "0000316206", "assigned-sic": "7011", "irs-number": "521193298", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-07959", "film-number": "061111899"}, "business-address": {"street1": "1111 WESTCHESTER AVENUE", "city": "WHITE PLAINS", "state": "NY", "zip": "10604", "phone": "9146408100"}, "mail-address": {"street1": "2231 E CAMELBACK RD. 4TH FL", "street2": "SUITE 4O0", "city": "PHOENIX", "state": "AZ", "zip": "85016"}, "former-company": [{"former-conformed-name": "STARWOOD LODGING CORP", "date-changed": "19950215"}, {"former-conformed-name": "HOTEL INVESTORS CORP", "date-changed": "19920703"}]}
text: Starwood Hotels & Resorts Worldwide, Inc. (Form: 8-K)
  UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of Report (Date of Earliest Event Reported):
  September 21, 2006
  Starwood Hotels & Resorts Worldwide, Inc.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Maryland
  1-7959
  52-1193298
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  1111 Westchester Avenue, White Plains, New York
  10604
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  (914) 640-8100
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  Check the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any
  of the following provisions:
  [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  On September 27, 2006, the Compensation Committee of Starwood Hotels & Resorts Worldwide, Inc. (the "Corporation") named Matthew A. Ouimet a participant under the Annual Incentive Plan for Certain Executives and established a performance threshold for 2006 bonus compensation.  The 2006 performance threshold is based on the Corporation achieving certain levels of EBITDA.  If the performance threshold is achieved, Mr. Ouimet would be eligible to receive a bonus under the plan.  Since Mr. Ouimet started his employment with the Corporation on August 1, 2006, the performance period for Mr. Ouimet is from September 1, 2006 to December 31, 2006.
  On September 21, 2006, the Corporation and Matthew A. Ouimet executed an employment agreement (the "Agreement") relating to Mr. Ouimet's appointment as President, Hotel Operations of the Corporation, which was previously disclosed.
  The Agreement has an initial term through March 1, 2010, with automatic one year renewals commencing on such date, unless either party provides the other with at least six months prior written notice that the term shall not be extended.  Under the Agreement, Mr. Ouimet's annual base salary is $700,000 and he will be eligible to receive a target bonus of 100% of base salary.  For 2006, Mr. Ouimet will be eligible to receive the full target bonus.
  The Agreement provides that Mr. Ouimet's equity grant for 2007 will have a value of $2,500,000, comprised of restricted stock units and/or options in the same proportion of grants made to other senior executives of the Corporation.  The restricted stock units awarded will vest in full on the third anniversary of their award.  The exercise price for the options will be the fair market value of the Corporation's common stock on the date of grant and the options shall become exercisable as to one fourth of the number of shares subject thereto on each anniversary of the date of grant.
  The Agreement provides that Mr. Ouimet is entitled to participate in certain benefit plans of the Corporation as well as to receive certain travel and other benefits in connection with his services to the Corporation.   The Agreement also provides that Mr. Ouimet will relocate to the vicinity of the Corporation's headquarters in New York/Connecticut by December 31, 2007 and that he will be entitled to up to $1,500,000 in reimbursement for travel to and from his California home for the first 12 months of his employment.  The Corporation will also provide Mr. Ouimet with relocation benefits associated with the sale of his home in California.  If Mr. Ouimet elects to defer the sale of his home for up to one year, the Corporation will, subject to certain limitations, reimburse Mr. Ouimet if the appraised value of his home after the deferral is less than the initial appraised value of his home done as soon as practicable following the commencement of his employment.  Mr. Ouimet will also be entitled to a tax gross up for these reimbursements.
  If Mr. Ouimet's employment is terminated by the Corporation other than for cause or by Mr. Ouimet for good reason during the first two years of employment, the Corporation shall pay Mr. Ouimet as a severance benefit base salary and target bonus through July 31, 2009 and provide welfare benefits for that term.  If Mr. Ouimet's employment is terminated by the Corporation other than for cause or by Mr. Ouimet for good reason after the first two years of employment, the Corporation shall pay Mr. Ouimet as a severance benefit (i) his base salary for 12 months, (ii) his target bonus for one year and (iii) 50% of his target bonus pro rated for the number of days elapsed in the calendar year to the date of termination. Mr. Ouimet would also receive his medical benefits coverage for twelve months following his termination.
  The Agreement is attached as Exhibit 10.1 hereto and incorporated herein by reference.
  Top of the Form
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934, the
  	registrant has duly caused this report to be signed on its behalf by the
  	undersigned hereunto duly authorized.
  Starwood Hotels & Resorts Worldwide, Inc.
  September 27, 2006
  By:
  Jared T. Finkelstein
  Name: Jared T. Finkelstein
  Title: Assistant Secretary
  Top of the Form
  Exhibit Index
  Exhibit No.
  Description
  10.1
  Employment Agreement between Starwood Hotels & Resorts Worldwide, Inc. and Matthew A. Ouimet.