Amid a chilly economic environment Starwood Hotels & Resorts Worldwide Inc.'s (HOT) said Thursday it's unlikely to maintain its current dividend rate of 90 cents a share.

Vasant Prabhu, Starwood's chief financial officer, said during the company's fourth-quarter earnings call that based on its baseline earnings per share target of $1.10 in 2009, a 90-cent dividend would work out to a payout ratio of 80%.

"As such, it is unlikely that we will maintain our dividend," at that level, Prabhu said.

He added that if Starwood maintains a payout ratio in the 25% to 40% range, it will result in a significant dividend reduction. "Given the substantial change in market conditions, we are reviewing our dividend plans," Prabhu said.

Starwood shares were recently down 3% at $16.89.

-By A.D. Pruitt, Dow Jones Newswires; 201-938-2269; angela.pruitt@dowjones.com

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