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Host Hotels & Resorts Reports 2nd Qtr 2007 Profit Falls
to $149 million from $330 million in Previous Year
Hotel Operating Data
BETHESDA, Md., July 18, 2007 - Host Hotels & Resorts, Inc. (NYSE: HST), the nation's largest lodging real estate investment trust (REIT), today announced its results of operations for the second quarter ended June 15, 2007.

    -- Total revenue increased $210 million, or 17.8%, to $1,391 million for
       the second quarter and $422 million, or 21.0%, to $2,428 million for
       year-to-date 2007.  Excluding the revenues for the Starwood portfolio,
       which was purchased in April 2006, revenues increased 8.4% and 7.9% for
       the second quarter and year-to-date 2007, respectively.

    -- Net income decreased $181 million to $149 million for the second
       quarter and $166 million to $336 million for year-to-date 2007.
       Earnings per diluted share decreased $.35 to $.27 and $.48 to $.62 for
       the second quarter and year-to-date 2007, respectively.

       Net income in 2007 included a net loss of approximately $46 million, or
       $.08 per diluted share, for the second quarter, and a net gain of $90
       million, or $.16 per diluted share, for year-to-date 2007 associated
       with the refinancing of debt and gains (losses) on hotel dispositions.
       By comparison, net income in 2006 included a net gain of approximately
       $199 million, or $.38 per diluted share, and $345 million, or $.78 per
       diluted share, in the second quarter and year-to-date 2006,
       respectively, associated with similar transactions, as well as
       preferred stock redemptions and non-recurring costs associated with the
       Starwood acquisition. For further detail, refer to the "Schedule of
       Significant Transactions Affecting Earnings per Share and Funds From
       Operations per Diluted Share" attached to this press release.

    -- Funds from Operations (FFO) per diluted share increased 23.1% to $.48
       for the second quarter and 16.4% to $.78 for year-to-date 2007.  FFO
       was reduced by $.08 per diluted share for costs associated with debt
       refinancings for both the second quarter and year-to-date 2007. By
       comparison, FFO per diluted share was reduced by $.04 and $.05 for the
       second quarter and year-to-date 2006, respectively, for costs
       associated with debt refinancings, as well as costs associated with
       preferred stock redemptions and the Starwood acquisition. For further
       detail, refer to the "Schedule of Significant Transactions Affecting
       Earnings per Share and Funds From Operations per Diluted Share"
       attached to this press release.

The Company also announced the following second quarter results for Host Hotels & Resorts, L.P., through which it conducts all of its operations and holds approximately 97% of the partnership interests:

    -- Net income decreased $189 million to $154 million for the second
       quarter and $176 million to $348 million for year-to-date 2007. Net
       income of Host LP was also affected by certain transactions-See
       "Schedule of Significant Transactions Affecting Earnings per Share and
       Funds From Operations per Diluted Share."

    -- Adjusted EBITDA, which is Earnings before Interest Expense, Income
       Taxes, Depreciation, Amortization and other items, increased 19.3% to
       $414 million for the second quarter and 21.1% to $677 million for year-
       to-date 2007.

Adjusted EBITDA, FFO per diluted share and comparable hotel adjusted operating profit margins (discussed below) are non-GAAP (generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (SEC). See the discussion included in this press release for information regarding these non-GAAP financial measures.

Operating Results

The Company presents RevPAR for its comparable hotels plus the Starwood portfolio acquired in April of 2006 due to the significant contribution of these hotels to the Company's operations. RevPAR for the comparable hotels plus the Starwood portfolio, which includes the 24 hotels acquired from Starwood in 2006 that we own as of June 15, 2007, increased 6.7% for the quarter and 6.8% year-to-date. The comparable hotel plus the Starwood portfolio RevPAR gains were driven by an increase in average room rates of 6.0% for the quarter and 6.1% year-to-date and increases in occupancy of .5 percentage points for both the quarter and year-to-date periods. Comparable hotel RevPAR for the second quarter of 2007 increased 5.5% when compared to the second quarter of 2006 and year-to-date comparable hotel RevPAR increased 5.8% when compared to year-to-date 2006. Comparable hotel adjusted operating profit margins increased .5 percentage points and .4 percentage points for the second quarter and year-to-date 2007, respectively. For further detail, see "Notes to the Financial Information."

Financing Activities and Balance Sheet

During the second quarter, the Company continued to reduce interest costs, as well as manage its capital structure to provide financial flexibility. On May 2, 2007, the Company paid approximately $547 million in connection with the defeasance of $514 million of mortgage debt with a 7.61% interest rate (the "CMBS Loan"), primarily utilizing proceeds from its March issuance of $600 million of 25/8% Exchangeable Senior Debentures. The payment included approximately $33 million in prepayment/defeasance and other costs. On May 25, 2007, the Company successfully amended its credit facility to increase the size of the facility to $600 million, extend the maturity from 2008 to 2011 and modify the terms of the facility, including lowering the rate of interest on borrowings from a spread of 200 to 375 basis points over LIBOR to 65 to 150 basis points over LIBOR, depending on the Company's leverage ratio. The amended facility also has an accordion feature that allows for total borrowing capacity of up to $1 billion. There are currently no amounts outstanding under the facility. Since December 31, 2006, the Company has decreased its weighted average interest rate from 6.8% to 6.1% as a result of its 2007 refinancings.

As of June 15, 2007, the Company had approximately $497 million of cash and cash equivalents. Excluding amounts necessary for working capital, the Company intends to use its remaining available funds to further invest in its portfolio, acquire new properties or make further debt repayments.

Dividend

As previously announced, the Company expects to declare a fixed $.20 per share common dividend each quarter, as well as a special dividend in the fourth quarter of each year, the amount of which will be based on the Company's taxable income. Based on the Company's 2007 guidance, the Company expects that the fourth quarter special dividend would be in the range of $.10 to $.20.

2007 Outlook

The Company expects RevPAR for the comparable hotels plus the Starwood portfolio to increase approximately 5.5% to 6.5% for the third quarter and 6.5% to 7.5% for the full year. For full year 2007, the Company expects its operating profit margins under GAAP to increase approximately 30 basis points to 70 basis points and its comparable hotel adjusted operating profit margins to increase approximately 75 basis points to 100 basis points. Based upon this guidance, the Company estimates that full year 2007 guidance for Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. would be as follows:

    Host Hotels & Resorts, Inc.
    -- earnings per diluted share should be approximately $.12 to $.13 for the
       third quarter and $1.11 to $1.17 for the full year;
    -- net income should be approximately $65 million to $70 million for the
       third quarter and $602 million to $634 million for the full year; and
    -- FFO per diluted share should be approximately $.32 to $.33 for the
       third quarter and $1.78 to $1.84 for the full year (including a charge
       of approximately $.08 per diluted share for the full year for debt
       prepayment costs).

    Host Hotels & Resorts, L.P.
    -- net income should be approximately $624 million to $656 million for the
       full year 2007; and
    -- Adjusted EBITDA for the full year 2007 should be
       approximately $1,450 million to $1,480 million.
 
 

                         HOST HOTELS & RESORTS, INC.
                       Consolidated Balance Sheets (a)
              (in millions, except shares and per share amounts)

                                                   June 15,      December 31,
                                                      2007              2006
                                                  (unaudited)
                                     ASSETS

    Property and equipment, net                    $10,510           $10,584
    Assets held for sale                                 -                96
    Due from managers                                  122                51
    Investments in affiliates                          166               160
    Deferred financing costs, net                       57                60
    Furniture, fixtures and equipment
     replacement fund                                  133               100
    Other                                              218               199
    Restricted cash                                    108               194
    Cash and cash equivalents                          497               364
         Total assets                              $11,811           $11,808

                      LIABILITIES AND STOCKHOLDERS' EQUITY

    Debt
      Senior notes, including $1,087
       million and $495 million,
       respectively, net of discount, of
       exchangeable senior debentures               $4,112            $3,526
      Mortgage debt                                  1,617             2,014
      Credit facility                                    -               250
      Other                                             88                88
         Total debt                                  5,817             5,878
    Accounts payable and accrued expenses              196               243
    Other                                              235               252
         Total liabilities                           6,248             6,373

    Interest of minority partners of Host
     Hotels & Resorts, L.P.                            186               185
    Interest of minority partners of
     other consolidated partnerships                    28                28

    Stockholders' equity
    Cumulative redeemable preferred stock
     (liquidation preference $100
     million) 50 million shares
     authorized; 4.0 issued and
     outstanding                                        97                97
    Common stock, par value $.01, 750
     million shares authorized; 522.2
     million shares and 521.1 million
     shares issued and outstanding,
     respectively                                        5                 5
    Additional paid-in capital                       5,670             5,680
    Accumulated other comprehensive
     income                                             29                25
    Deficit                                           (452)             (585)
    Total stockholders' equity                       5,349             5,222
    Total liabilities and stockholders'
     equity                                        $11,811           $11,808

    (a)  Our consolidated balance sheet as of June 15, 2007 has been prepared
         without audit. Certain information and footnote disclosures normally
         included in financial statements presented in accordance with GAAP
         have been omitted. The consolidated balance sheets should be read in
         conjunction with the consolidated financial statements and notes
         thereto included in our most recent Annual Report on Form 10-K.
 
 

                         HOST HOTELS & RESORTS, INC.
                  Consolidated Statements of Operations (a)
              (unaudited, in millions, except per share amounts)

                                          Quarter ended  Year-to-date ended
                                         June 15, June 16, June 15, June 16,
                                            2007    2006    2007     2006

    Revenues
      Rooms                                 $846    $714   $1,460   $1,201
      Food and beverage                      429     368      752      627
      Other                                   91      73      160      123
        Total hotel sales                  1,366   1,155    2,372    1,951
      Rental income (b)                       25      26       56       55
        Total revenues                     1,391   1,181    2,428    2,006
    Expenses
      Rooms                                  194     164      346      282
      Food and beverage                      297     259      534      450
      Hotel departmental expenses            316     267      567      467
      Management fees                         72      56      117       90
      Other property-level expenses (b)       95      83      176      148
      Depreciation and amortization          119     104      235      191
      Corporate and other expenses            14      21       35       41
        Total operating costs and expenses 1,107     954    2,010    1,669
    Operating profit                         284     227      418      337
    Interest income                           12       9       18       14
    Interest expense                        (136)   (107)    (230)    (198)
    Net gains on property transactions         1       1        2        2
    Minority interest expense                 (5)    (16)     (16)     (29)
    Equity in earnings (losses) of
     affiliates                                3      (6)       5       (5)
    Income before income taxes               159     108      197      121
    Provision for income taxes               (11)    (17)      (6)     (18)
    Income from continuing operations        148      91      191      103
    Income from discontinued operations (c)    1     239      145      399
    Net income                               149     330      336      502
    Less: Dividends on preferred stock        (2)     (4)      (4)     (10)
    Issuance costs of redeemed preferred
     stock (d)                                 -      (6)       -       (6)
    Net income available to common
     stockholders                           $147    $320     $332     $486
    Basic earnings per common share:
      Continuing operations                 $.28    $.16     $.36     $.20
      Discontinued operations                  -     .49      .28      .92
    Basic earnings per common share         $.28    $.65     $.64    $1.12
    Diluted earnings per common share:
      Continuing operations                 $.27    $.16     $.36     $.20
      Discontinued operations                  -     .46      .26      .90
    Diluted earnings per common share       $.27    $.62     $.62    $1.10

    (a)  Our consolidated statements of operations presented above have been
         prepared without audit. Certain information and footnote disclosures
         normally included in financial statements presented in accordance
         with GAAP have been omitted. The consolidated statements of
         operations should be read in conjunction with the consolidated
         financial statements and notes thereto included in our most recent
         Annual Report on Form 10-K.

    (b)  Rental income and expense are as follows:

                                            Quarter ended   Year-to-date ended
                                           June 15, June 16, June 15, June 16,
                                              2007     2006     2007     2006

        Rental income                           $7       $8      $19      $19
          Full-service                          18       18       37       36
          Select service and office
           buildings                           $25      $26      $56      $55

        Rental and other expenses
         (included in other property
         level expenses)                        $2       $2       $4       $3
          Full-service                          19       18       38       37
          Select service and office
           buildings                           $21      $20      $42      $40

    (c)  Reflects the results of operations (including $3 million of business
         interruption insurance proceeds) and gains on sale, net of the
         related income tax, for seven properties sold in 2007 and seven
         properties sold in 2006.

    (d)  Represents the original issuance cost associated with the redemption
         of the Class C preferred stock in 2006.
 
 

                         HOST HOTELS & RESORTS, INC.
                          Earnings per Common Share
              (unaudited, in millions, except per share amounts)

                                        Quarter ended       Quarter ended
                                        June 15, 2007       June 16, 2006
                                  Income  Shares  Per    Income Shares  Per
                                 (Numer- (Denom-  Share (Numer- (Denom- Share
                                  ator)  inator)  Amount ator)  inator) Amount

    Net income                     $149  522.1     $.29  $330    492.8  $.67
    Dividends on preferred stock     (2)     -     (.01)   (4)       -  (.01)
    Issuance costs of redeemed
     preferred stock (a)              -      -        -    (6)       -  (.01)
    Basic earnings available to
     common stockholders (b)(c)     147  522.1      .28   320    492.8   .65
    Assuming distribution of common
     shares granted under the
     comprehensive stock plan less
     shares assumed purchased at
     average market price             -     .7        -     -      2.0     -
    Assuming conversion of minority
     OP units issuable                -    1.2        -     -      2.5  (.01)
    Assuming conversion of 2004
     Exchangeable Senior Debentures   4   29.0     (.01)    4     28.1  (.02)
    Diluted earnings available to
     common stockholders (b)(c)    $151  553.0     $.27  $324    525.4  $.62
 

                                     Year-to-date ended   Year-to-date ended
                                        June 15, 2007       June 16, 2006
                                  Income  Shares  Per    Income Shares  Per
                                 (Numer- (Denom-  Share (Numer- (Denom- Share
                                  ator)  inator)  Amount ator)  inator) Amount

    Net income                     $336  521.8     $.65  $502    435.7 $1.15
    Dividends on preferred stock     (4)     -     (.01)  (10)       -  (.02)
    Issuance costs of redeemed
     preferred stock (a)              -      -        -    (6)       -  (.01)
    Basic earnings available to
     common stockholders (b)(c)     332  521.8      .64   486    435.7  1.12
    Assuming distribution of common
     shares granted under the
     comprehensive stock plan less
     shares assumed purchased at
     average market price             -     .8        -     -      2.0  (.01)
    Assuming conversion of minority
     OP units issuable                -    1.2        -     -      2.5  (.01)
    Assuming conversion of 2004
     Exchangeable Senior Debentures   9   29.0     (.02)    -        -     -
    Diluted earnings available to
     common stockholders (b)(c)    $341  552.8     $.62  $486    440.2  $1.10

    (a)  Represents the original issuance costs associated with the redemption
         of the Company's Class C preferred stock in 2006.

    (b)  Basic earnings per common share is computed by dividing net income
         available to common stockholders by the weighted average number of
         shares of common stock outstanding. Diluted earnings per common share
         is computed by dividing net income available to common stockholders
         as adjusted for potentially dilutive securities, by the weighted
         average number of shares of common stock outstanding plus potentially
         dilutive securities. Dilutive securities may include shares granted
         under comprehensive stock plans, preferred OP Units held by minority
         partners, convertible debt securities and other minority interests
         that have the option to convert their limited partnership interests
         to common OP Units. No effect is shown for any securities that are
         anti-dilutive.

    (c)  Our results for both periods presented were significantly affected by
         certain transactions.  For further detail see "Schedule of
         Significant Transactions Affecting Earnings per Share and Funds From
         Operations per Diluted Share."
 
 

                         HOST HOTELS & RESORTS, INC.
                       Comparable Hotel Operating Data
                                 (unaudited)

                                     Comparable Hotels by Region (a)

                                   As of
                               June 15, 2007    Quarter Ended June 15, 2007

                                               Average   Average
                               No. of  No. of   Daily   Occupancy
                           Properties   Rooms   Rate    Percentage  RevPAR
    Pacific                        22  12,016  $214.04     75.5%    $161.70
    Florida                         9   5,663   231.75     76.7      177.77
    Mid-Atlantic                    8   5,870   245.77     84.4      207.45
    DC Metro                       12   5,399   205.32     84.8      174.17
    North Central                  12   4,907   158.02     74.3      117.40
    South Central                   7   4,126   160.68     74.7      120.00
    Atlanta                         7   2,625   204.27     71.9      146.88
    New England                     6   3,032   187.15     80.8      151.30
    Mountain                        6   2,210   148.01     65.8       97.32
    International                   5   1,953   161.45     72.1      116.43
    All Regions                    94  47,801   202.32     77.1      156.08
 

                                         Quarter ended June 16, 2006

                                         Average   Average            Percent
                                          Daily   Occupancy          Change in
                                          Rate    Percentage  RevPAR   RevPAR

    Pacific                              $202.02    75.9%    $153.42     5.4%
    Florida                               224.96     75.8     170.52     4.3
    Mid-Atlantic                          225.27     82.3     185.39    11.9
    DC Metro                              201.72     83.4     168.29     3.5
    North Central                         150.08     75.6     113.44     3.5
    South Central                         149.95     73.4     110.07     9.0
    Atlanta                               193.11     74.8     144.44     1.7
    New England                           177.97     83.0     147.74     2.4
    Mountain                              138.79     65.3      90.63     7.4
    International                         154.33     75.3     116.23     0.2
    All Regions                           191.65     77.1     147.87     5.5
 

                                  As of              Year-to-date
                              June 15, 2007       ended June 15, 2007

                                               Average    Average
                               No. of  No. of   Daily    Occupancy
                           Properties   Rooms   Rate     Percentage  RevPAR
    Pacific                        22  12,016  $211.90     73.8%    $156.30
    Florida                         9   5,663   239.45     76.4      183.01
    Mid-Atlantic                    8   5,870   234.59     79.0      185.34
    DC Metro                       12   5,399   201.54     77.3      155.76
    North Central                  12   4,907   147.10     68.5      100.74
    South Central                   7   4,126   158.80     75.4      119.77
    Atlanta                         7   2,625   198.26     70.8      140.34
    New England                     6   3,032   171.24     72.4      124.03
    Mountain                        6   2,210   158.01     65.6      103.61
    International                   5   1,953   155.48     68.5      106.46
    All Regions                    94  47,801   198.63     73.9      146.80
 

                                             Year-to-date ended
                                                June 16, 2006

                                         Average   Average            Percent
                                          Daily   Occupancy          Change in
                                          Rate    Percentage  RevPAR   RevPAR
    Pacific                              $198.98     74.6%   $148.52     5.2%
    Florida                               230.38     76.0     175.00     4.6
    Mid-Atlantic                          215.34     77.7     167.22    10.8
    DC Metro                              197.09     74.0     145.80     6.8
    North Central                         139.91     70.5      98.69     2.1
    South Central                         146.53     74.7     109.45     9.4
    Atlanta                               188.29     73.8     138.94     1.0
    New England                           163.60     74.0     121.02     2.5
    Mountain                              147.50     64.3      94.81     9.3
    International                         148.51     71.9     106.78    (0.3)
    All Regions                           187.45     74.0     138.73     5.8
 

                    Comparable Hotels by Property Type (a)

                                   As of
                               June 15, 2007   Quarter Ended June 15, 2007

                                               Average    Average
                               No. of  No. of   Daily    Occupancy
                           Properties   Rooms   Rate     Percentage  RevPAR
    Urban                          40  23,518  $213.21     81.0%    $172.66
    Suburban                       28  10,901   158.29     69.8      110.47
    Airport                        15   6,557   143.12     77.3      110.63
    Resort/Conference              11   6,825   282.57     75.5      213.33
    All Types                      94  47,801   202.32     77.1      156.08
 

                                        Quarter ended June 16, 2006

                                         Average   Average            Percent
                                          Daily   Occupancy          Change in
                                          Rate    Percentage  RevPAR   RevPAR
    Urban                                $199.18    81.0%    $161.25    7.1%
    Suburban                              149.24     69.6     103.84     6.4
    Airport                               137.91     75.4     103.94     6.4
    Resort/Conference                     272.70     77.8     212.19     0.5
    All Types                             191.65     77.1     147.87     5.5
 

                                   As of               Year-to-date
                               June 15, 2007        ended June 15, 2007

                                               Average    Average
                               No. of  No. of   Daily    Occupancy
                           Properties   Rooms   Rate     Percentage  RevPAR
    Urban                          40  23,518  $206.93     77.0%    $159.35
    Suburban                       28  10,901   156.84     67.6      105.99
    Airport                        15   6,557   143.21     73.5      105.28
    Resort/Conference              11   6,825   284.45     73.8      209.79
    All Types                      94  47,801   198.63     73.9      146.80
 

                                     Year-to-date ended June 16, 2006

                                         Average   Average            Percent
                                          Daily   Occupancy          Change in
                                          Rate    Percentage  RevPAR   RevPAR
    Urban                                $193.11     76.9%   $148.44     7.3%
    Suburban                              147.99     67.4      99.70     6.3
    Airport                               137.04     72.6      99.53     5.8
    Resort/Conference                     271.08     76.2     206.48     1.6
    All Types                             187.45     74.0     138.73     5.8

    (a) See the notes to financial information for a discussion of reporting
        periods and comparable hotel results.
 
 

                         HOST HOTELS & RESORTS, INC.
                Comparable Hotels plus the Starwood Portfolio
                             Hotel Operating Data
                                 (unaudited)

                Comparable Hotels plus the Starwood Portfolio by Region (a)

                          As of June 15, 2007   Quarter Ended June 15, 2007

                                               Average    Average
                               No. of  No. of   Daily    Occupancy
                           Properties   Rooms   Rate     Percentage  RevPAR
    Pacific                        28  16,019  $204.17      76.8%   $156.89
    Florida                        10   5,922   226.42      76.9     174.08
    Mid-Atlantic                   11   8,681   254.96      85.3     217.38
    DC Metro                       13   5,662   206.99      85.1     176.05
    North Central                  15   6,496   153.23      72.1     110.52
    South Central                   8   4,358   167.42      74.3     124.44
    Atlanta                         7   2,625   204.27      71.9     146.88
    New England                    11   5,663   177.62      76.3     135.45
    Mountain                        8   2,856   149.15      68.6     102.30
    International                   7   2,471   154.69      70.9     109.69
    All Regions                   118  60,753   200.33      77.2     154.69
 

                                         Quarter ended June 16, 2006

                                          Average   Average            Percent
                                           Daily   Occupancy         Change in
                                           Rate   Percentages  RevPAR   RevPAR
    Pacific                              $192.70    76.9%     $148.11     5.9%
    Florida                               219.40     75.8      166.39     4.6
    Mid-Atlantic                          231.06     81.8      188.96    15.0
    DC Metro                              202.33     83.7      169.29     4.0
    North Central                         146.72     72.4      106.26     4.0
    South Central                         155.41     73.1      113.62     9.5
    Atlanta                               193.11     74.8      144.44     1.7
    New England                           173.54     76.4      132.67     2.1
    Mountain                              139.07     68.1       94.67     8.1
    International                         146.18     74.8      109.30     0.4
    All Regions                           188.99     76.7      145.00     6.7
 

                                                       Year-to-date
                          As of June 15, 2007      Ended June 15, 2007

                                               Average    Average
                               No. of  No. of   Daily    Occupancy
                           Properties   Rooms   Rate     Percentage  RevPAR
    Pacific                        28  16,019  $203.13      74.8%   $151.96
    Florida                        10   5,922   234.68      76.6     179.70
    Mid-Atlantic                   11   8,681   241.06      80.6     194.39
    DC Metro                       13   5,662   202.59      77.6     157.28
    North Central                  15   6,496   144.13      67.5      97.36
    South Central                   8   4,358   164.25      75.1     123.28
    Atlanta                         7   2,625   198.26      70.8     140.34
    New England                    11   5,663   166.22      68.6     114.06
    Mountain                        8   2,856   157.24      67.7     106.41
    International                   7   2,471   149.15      68.0     101.35
    All Regions                   118  60,753   196.29      74.0     145.23
 

                                              Year-to-date ended
                                                 June 16, 2006

                                          Average   Average            Percent
                                           Daily   Occupancy         Change in
                                           Rate   Percentages  RevPAR   RevPAR
    Pacific                                $191.71    75.3%   $144.30     5.3%
    Florida                                 225.36     76.1    171.46     4.8
    Mid-Atlantic                            220.26     76.9    169.29    14.8
    DC Metro                                197.57     74.4    146.96     7.0
    North Central                           137.84     68.3     94.14     3.4
    South Central                           151.10     74.4    112.46     9.6
    Atlanta                                 188.29     73.8    138.94     1.0
    New England                             162.19     68.6    111.24     2.5
    Mountain                                145.94     66.8     97.51     9.1
    International                           140.38     72.0    101.02     0.3
    All Regions                             184.97     73.5    135.94     6.8
 
 

         Comparable Hotels plus the Starwood Portfolio by Property Type (a)

                              As of June 15, 2007  Quarter Ended June 15, 2007

                                               Average    Average
                               No. of  No. of   Daily    Occupancy
                           Properties   Rooms   Rate     Percentages  RevPAR
    Urban                          55  33,016  $212.39      79.9%    $169.75
    Suburban                       34  12,844   156.49      70.0      109.58
    Airport                        17   7,556   138.65      78.4      108.64
    Resort/Conference              12   7,337   276.41      76.3      211.00
    All Types                     118  60,753   200.33      77.2      154.69
 
 

                                              Quarter ended June 16, 2006
                                          Average   Average            Percent
                                           Daily   Occupancy         Change in
                                           Rate   Percentages  RevPAR   RevPAR
    Urban                                  $197.93    79.1%   $156.60    8.4%
    Suburban                                147.61     69.5    102.63     6.8
    Airport                                 132.70     76.8    101.93     6.6
    Resort/Conference                       267.13     78.3    209.16     0.9
    All Types                               188.99     76.7    145.00     6.7
 

                                                       Year-to-date
                          As of June 15, 2007       Ended June 15, 2007

                                               Average    Average
                               No. of  No. of   Daily    Occupancy
                           Properties   Rooms   Rate     Percentages  RevPAR
    Urban                          55  33,016  $205.35      76.3%    $156.64
    Suburban                       34  12,844   155.82      67.4      105.04
    Airport                        17   7,556   139.33      75.0      104.43
    Resort/Conference              12   7,337   279.15      74.4      207.55
    All Types                     118  60,753   196.29      74.0      145.23
 

                                                Year-to-date
                                             ended June 16, 2006

                                          Average   Average            Percent
                                           Daily   Occupancy         Change in
                                           Rate   Percentages  RevPAR   RevPAR
    Urban                                  $191.69    75.2%   $144.17     8.6%
    Suburban                                147.05     67.0     98.59     6.5
    Airport                                 132.79     74.1     98.41     6.1
    Resort/Conference                       266.62     76.5    204.05     1.7
    All Types                               184.97     73.5    135.94     6.8

    (a) Reflects our comparable hotels plus the 24 hotels acquired from
        Starwood in April 2006 that we own as of June 15, 2007. For further
        detail, see the notes to the financial information for a discussion of
        reporting periods and comparable hotel plus the Starwood portfolio
        RevPAR. The 2006 results and percentage change statistics include
        results prior to our ownership for the Starwood portfolio.
 
 

                         HOST HOTELS & RESORTS, INC.
                       Comparable Hotel Operating Data
                   Schedule of Comparable Hotel Results (a)
              (unaudited, in millions, except hotel statistics)

                                            Quarter ended   Year-to-date ended
                                           June 15, June 16, June 15, June 16,
                                             2007     2006     2007     2006

    Number of hotels                            94       94       94       94
    Number of rooms                         47,801   47,801   47,801   47,801
    Percent change in Comparable Hotel
     RevPAR                                   5.5%              5.8%
    Operating profit margin under GAAP (b)   20.4%    19.2%    17.2%    16.8%
    Comparable hotel adjusted operating
     profit margin (c)                       30.4%    29.9%    28.5%    28.1%
    Food and beverage profit margin under
     GAAP (d)                                30.8%    29.6%    29.0%    28.2%
    Comparable food and beverage profit
     margin (e)                              31.5%    30.4%    29.6%    28.6%

    Comparable hotel sales
      Room                                    $642     $608   $1,149   $1,086
      Food and beverage (g)                    333      322      602      581
      Other                                     69       65      125      117
        Comparable hotel sales (f)           1,044      995    1,876    1,784
    Comparable hotel expenses
      Room                                     145      138      266      255
      Food and beverage (i)                    228      224      424      415
      Other                                     39       38       70       68
      Management fees, ground rent and other
       costs                                   315      297      581      544
        Comparable hotel expenses (h)          727      697    1,341    1,282
    Comparable hotel adjusted operating
     profit                                    317      298      535      502
    Non-comparable hotel results, net (j)      101       54      154       68
    Office buildings and select service
     properties, net (k)                        (1)       -       (1)      (1)
    Depreciation and amortization             (119)    (104)    (235)    (191)
    Corporate and other expenses               (14)     (21)     (35)     (41)
    Operating profit                          $284     $227     $418     $337

    (a)  See the notes to the financial information for discussion of non-GAAP
         measures, reporting periods and comparable hotel results.

    (b)  Operating profit margin under GAAP is calculated as the operating
         profit divided by the total revenues per the consolidated statements
         of operations.

    (c)  Comparable hotel adjusted operating profit margin is calculated as
         comparable hotel adjusted operating profit divided by the comparable
         hotel sales per the table above.

    (d)  Food and beverage profit margin under GAAP is calculated as the food
         and beverage profit of $132 million and $109 million for the quarters
         ended June 15, 2007 and June 16, 2006, respectively, and $218 million
         and $177 million for the year-to-date periods ended June 15, 2007 and
         June 16, 2006, respectively, divided by the total food and beverage
         revenues per the consolidated statements of operations.

    (e)  Comparable food and beverage adjusted profit margin is calculated as
         the comparable food and beverage adjusted profit of $105 million and
         $98 million for the quarters ended June 15, 2007 and June 16, 2006,
         respectively, and $178 million and $166 million for the year-to-date
         periods ended June 15, 2007 and June 16, 2006, respectively, divided
         by the comparable food and beverage sales per the table above.

    (f)  The reconciliation of total revenues per the consolidated statements
         of operations to the comparable hotel sales is as follows:
 

                                            Quarter ended   Year-to-date ended
                                           June 15, June 16, June 15, June 16,
                                             2007     2006     2007     2006
         Revenues per the consolidated
          statements of operations          $1,391   $1,181   $2,428   $2,006
         Non-comparable hotel sales           (343)    (182)    (556)    (219)
         Hotel sales for the property for
          which we record rental income,
          net                                   14       14       27       26
         Rental income for office
          buildings and select service
          hotels                               (18)     (18)     (37)     (36)
         Adjustment for hotel sales for
          comparable hotels to reflect
          Marriott's fiscal year for
          Marriott-managed hotels                -        -       14        7
         Comparable hotel sales             $1,044     $995   $1,876   $1,784
 

    (g)  The reconciliation of total food and beverage sales per the
         consolidated statements of operations to the comparable food and
         beverage sales is as follows:

                                            Quarter ended   Year-to-date ended
                                           June 15, June 16, June 15, June 16,
                                             2007     2006     2007     2006
         Food and beverage sales per the
          consolidated statements of
          operations                          $429     $368     $752     $627
         Non-comparable food and beverage
          sales                               (103)     (53)    (170)     (63)
         Food and beverage sales for the
          property for which we record
          rental income                          7        7       16       15
         Adjustment for food and beverage
          sales for comparable hotels to
          reflect Marriott's fiscal year
          for Marriott-managed hotels            -        -        4        2
         Comparable food and beverage
          sales                               $333     $322     $602     $581

    (h)  The reconciliation of operating costs per the consolidated
         statements of operations to the comparable hotel expenses is as
         follows:

                                            Quarter ended   Year-to-date ended
                                          June 15, June 16, June 15, June 16,
                                            2007     2006     2007     2006
         Operating costs and expenses per
          the consolidated statements of
          operations                        $1,107     $954   $2,010   $1,669
         Non-comparable hotel expenses        (241)    (128)    (400)    (152)
         Hotel expenses for the property
          for which we record rental
          income                                13       14       29       29
         Rent expense for office buildings
          and select service hotels            (19)     (18)     (38)     (37)
         Adjustment for hotel expenses for
          comparable hotels to reflect
          Marriott's fiscal year for
          Marriott-managed hotels                -        -       10        5
         Depreciation and amortization        (119)    (104)    (235)    (191)
         Corporate and other expenses          (14)     (21)     (35)     (41)
         Comparable hotel expenses            $727     $697   $1,341   $1,282

    (i)  The reconciliation of total food and beverage expenses per the
         consolidated statements of operations to the comparable food and
         beverage expenses is as follows:

                                            Quarter ended   Year-to-date ended
                                           June 15, June 16, June 15, June 16,
                                             2007     2006     2007     2006
         Food and beverage expenses per
          the consolidated statements of
          operations                          $297     $259     $534     $450
         Non-comparable food and beverage
          expense                              (73)     (39)    (122)     (45)
         Food and beverage expenses for
          the property for which we record
          rental  income                         4        4        9        8
         Adjustment for food and beverage
          expenses for comparable hotels
          to reflect Marriott's fiscal
          year for Marriott-managed hotels       -        -        3        2
         Comparable food and beverage
          expenses                            $228     $224     $424     $415

    (j)  Non-comparable hotel results, net, includes the following items: (i)
         the results of operations of our non-comparable hotels whose
         operations are included in our consolidated statement of operations
         as continuing operations and (ii) the difference between the number
         of days of operations reflected in the comparable hotel results and
         the number of days of operations reflected in the consolidated
         statements of operations.

    (k)  Represents rental income less rental expense for select service
         properties and office buildings.
 
 

                           HOST HOTELS & RESORTS, INC.
                        Other Financial and Operating Data
                (unaudited, in millions, except per share amounts)

                                                   June 15,       December 31,
                                                     2007             2006
    Equity
    Common shares outstanding                        522.2              521.1
    Common shares and minority held
     common OP Units outstanding                     540.7              539.9
    Preferred OP Units outstanding                     .02                .02
    Class E Preferred shares outstanding               4.0                4.0

    Security pricing (per share price)
    Common (a)                                      $23.92             $24.55
    Class E Preferred (a)                           $26.88             $26.59
    3 1/4% Exchangeable Senior Debentures
     (b)                                         $1,472.50          $1,473.30
    2 5/8% Exchangeable Senior Debentures
     (b)(c)                                        $935.38                 $-

    Dividends declared per share for
     calendar year
    Common (d)                                        $.40               $.76
    Class E Preferred (d)                            $1.11              $2.22
    Class C Preferred (e)                               $-               $.86

    Debt
    Series K senior notes, with a rate
     of 7 1/8% due November 2013                      $725               $725
    Series M senior notes, with a rate
     of 7% due August 2012                             347                347
    Series O senior notes, with a rate
     of 6 3/8% due March 2015                          650                650
    Series Q senior notes, with a rate
     of 6 3/4% due June 2016                           800                800
    Series S senior notes, with a rate
     of 6 7/8% due November 2014                       497                496
    $500 million Exchangeable Senior
     Debentures, with a rate of 3 1/4% due
     April 2024                                        495                495
    $600 million Exchangeable Senior
     Debentures, with a rate of 2 5/8%
     due April 2027 (c)                                591                  -
    Senior notes, with an average
     interest rate of 10.0% and 9.7% at
     June 15, 2007 and December 31,
     2006, respectively, maturing
     through May 2012                                    7                 13
    Total senior notes                               4,112              3,526
    Mortgage debt (non-recourse) secured
     by $2.4 billion of real estate
     assets, with an average interest
     rate of 6.8% and 7.5% at June 15,
     2007 and December 31, 2006,
     respectively, maturing through
     December 2023                                   1,617              2,014
    Credit facility (f)                                  -                250
    Other                                               88                 88
    Total debt                                      $5,817             $5,878

    Percentage of fixed rate debt                     100%                94%
    Weighted average interest rate                    6.1%               6.8%
    Weighted average debt maturity                6.3 years          5.9 years
 

                                           Quarter ended   Year-to-date ended
                                         June 15, June 16, June 15, June 16,
                                           2007     2006     2007     2006
    Hotel Operating Statistics for All
     Full Service Properties (g)
       Average daily rate                $199.50  $186.66  $194.93  $183.49
       Average occupancy                   76.4%    76.3%    73.5%    73.8%
       RevPAR                            $152.49  $142.51  $143.33  $135.42

    (a) Share prices are the closing price as reported by the New York Stock
        Exchange.

    (b) Market price as quoted by Bloomberg L.P. Amount reflects the price of
        a single $1,000 debenture, which is exchangeable for common stock
        upon the occurrence of certain events.

    (c) The debentures are exchangeable, upon the occurrence of certain
        events, into cash up to the principal amount of the debentures
        exchanged and either cash and/or shares, at the Company's option, with
        respect to additional proceeds due to holders of the debentures, if
        any.

    (d) On June 15, 2007, the Company declared a second quarter common
        dividend of $.20 per share and a second quarter preferred dividend of
        $.5546875 per share for its Class E cumulative redeemable preferred
        stock.

    (e) On May 19, 2006, the Company redeemed, at par, all of the shares of
        its 10% Class C cumulative redeemable preferred stock for
        approximately $151 million, including accrued dividends.

    (f) Currently, the Company has $600 million of available capacity under
        its credit facility.

    (g) The operating statistics reflect all consolidated properties as of
        June 15, 2007 and June 16, 2006, respectively, including the results
        of operations for seven properties sold as of June 15, 2007 and seven
        properties sold in 2006 prior to their disposition.
 
 

                         HOST HOTELS & RESORTS, INC.
        Reconciliation of Net Income Available to Common Stockholders
                  to Funds From Operations per Common Share
              (unaudited, in millions, except per share amounts)

                                        Quarter ended       Quarter ended
                                         June 15, 2007      June 16, 2006
                                                   Per                   Per
                                                   Share                Share
                                     Income Shares Amount Income Shares Amount
    Net income available to common
     stockholders                      $147  522.1  $.28   $320   492.8  $.65
    Adjustments:
    (Gains)/losses on dispositions,
     net of taxes                         2      -     -   (232)      -  (.47)
    Amortization of deferred gains and
     other property transactions, net
     of taxes                            (1)     -     -     (1)      -     -
    Depreciation and amortization       117      -   .23    106       -   .21
    Partnership adjustments               6      -   .01     14       -   .03
    FFO of minority partners of
     Host LP (a)                         (9)     -  (.02)    (8)      -  (.02)
    Adjustments for dilutive securities:
    Assuming distribution of common
     shares granted under the
     comprehensive  stock plan less
     shares assumed purchased at average
     market price                         -     .7     -       -    2.0     -
    Assuming conversion of 2004
     Exchangeable Senior Debentures       4   29.0  (.02)      4   28.1  (.01)
    FFO per diluted share (b)(c)       $266  551.8  $.48    $203  522.9  $.39
 

                                       Year-to-date ended  Year-to-date ended
                                          June 15, 2007      June 16, 2006
                                                   Per                   Per
                                                   Share                Share
                                     Income Shares Amount Income Shares Amount
    Net income available to common
     stockholders                      $332  521.8  $.64  $486  435.7  $1.12
    Adjustments:
    Gains on dispositions, net of
     taxes                             (139)     -  (.27) (385)     -   (.89)
    Amortization of deferred gains
     and other property transactions,
     net of taxes                        (2)     -     -    (2)     -      -
    Depreciation and amortization       234      -   .45   195      -    .44
    Partnership adjustments              13      -   .02    22      -    .06
    FFO of minority partners of Host
     LP (a)                             (15)     -  (.03)  (13)     -   (.03)
    Adjustments for dilutive
     securities:
    Assuming distribution of common
     shares granted under the
     comprehensive  stock plan less
     shares assumed purchased at
     average market price                 -     .8     -     -     2.0  (.01)
    Assuming conversion of 2004
     Exchangeable Senior Debentures       9   29.0  (.03)    9    28.1  (.02)
    Assuming conversion of Convertible
     Subordinated Debentures              -      -     -     2     4.1     -
    FFO per diluted share (b)(c)       $432  551.6  $.78  $314   469.9  $.67

    (a) Represents FFO attributable to the minority interests in Host LP.

    (b) FFO per diluted share in accordance with NAREIT is adjusted for the
        effects of dilutive securities. Dilutive securities may include shares
        granted under comprehensive stock plans, preferred OP Units held by
        minority partners, exchangeable debt securities and other minority
        interests that have the option to convert their limited partnership
        interest to common OP Units. No effect is shown for securities if they
        are anti-dilutive.

    (c) FFO per diluted share was significantly affected by certain
        transactions. For further detail see "Schedule of Significant
        Transactions Affecting Earnings per Diluted Share and Funds From
        Operations per Diluted Share."
 
 

                         HOST HOTELS & RESORTS, INC.
      Schedule of Significant Transactions Affecting Earnings per Share
                 and Funds From Operations per Diluted Share
              (unaudited, in millions, except per share amounts)

                                           Quarter ended      Quarter ended
                                           June 15, 2007       June 16, 2006
                                         Net Income          Net Income
                                           (Loss)     FFO      (Loss)     FFO
    Non-recurring Starwood acquisition
     costs (a)                               $-        $-      $(13)     $(13)
    Senior notes redemptions and debt
     prepayments (b)                        (46)      (46)       (4)       (4)
    Preferred stock redemptions (c)           -         -        (8)       (8)
    Gain/(loss) on hotel dispositions,
     net of taxes                            (2)        -       232         -
    Assuming conversion of minority OP
     Units issuable                           -        (1)        -        (1)
    Minority interest income (expense)
     (d)                                      2         2        (8)        1
    Total (e)                              $(46)     $(45)     $199      $(25)
    Diluted shares                        553.0     553.0     525.4     525.4
    Per diluted share                     $(.08)    $(.08)     $.38     $(.04)
 

                                        Year-to-date ended  Year-to-date ended
                                            June 15, 2007       June 16, 2006
                                         Net Income          Net Income
                                           (Loss)     FFO      (Loss)     FFO
    Non-recurring Starwood acquisition
     costs (a)                               $-        $-      $(13)     $(13)
    Senior notes redemptions and debt
     prepayments (b)                        (46)      (46)       (4)       (4)
    Preferred stock redemptions (c)           -         -        (8)       (8)
    Gain on hotel dispositions, net of
     taxes                                  139         -       385         -
    Minority interest income (expense)
     (d)                                     (3)        2       (15)        1
    Total (e)                               $90      $(44)     $345      $(24)
    Diluted shares                        552.8     551.6     440.2     469.9
    Per diluted share                      $.16     $(.08)     $.78     $(.05)
 

    (a)  Represents non-recurring costs incurred in conjunction with the
         acquisition of the Starwood portfolio that are required to be
         expensed under GAAP, including start-up costs, bridge loan fees and
         expenses and the Company's portion of a foreign currency hedge loss
         incurred by the European joint venture as the venture hedged a
         portion of its initial investment for the acquisition of six European
         hotels.

    (b)  Represents call premiums and the acceleration of original issue
         discounts and deferred financing costs, as well as incremental
         interest during the call or prepayment notice period, included in
         interest expense in the consolidated statements of operations. We
         recognized these costs in conjunction with the prepayment or
         refinancing of senior notes and mortgages during certain periods
         presented.

    (c)  Represents the original issuance costs of $6 million and the
         incremental dividends of $2 million during the redemption notice
         period associated with the redemption of the Class C preferred stock
         in 2006.

    (d)  Represents the portion of the significant transactions attributable
         to minority partners in Host LP.

    (e)  Net income of Host LP was also affected by the transactions discussed
         above, with the exception of the minority interest income (expense)
         item discussed in footnote (d). Accordingly, the total adjustments on
         the net income of Host LP were approximately $(48) million and $207
         million for the second quarter of 2007 and 2006, respectively, and
         approximately $93 million and $360 million for year-to-date 2007 and
         2006, respectively.
 
 

                         HOST HOTELS & RESORTS, L.P.
                  Consolidated Statements of Operations (a)
              (unaudited, in millions, except per unit amounts)

                                            Quarter ended  Year-to-date ended
                                          June 15, June 16, June 15, June 16,
                                             2007    2006    2007     2006

    Revenues
      Rooms                                  $846    $714   $1,460   $1,201
      Food and beverage                       429     368      752      627
      Other                                    91      73      160      123
        Total hotel sales                   1,366   1,155    2,372    1,951
      Rental income                            25      26       56       55
        Total revenues                      1,391   1,181    2,428    2,006
    Expenses
      Rooms                                   194     164      346      282
      Food and beverage                       297     259      534      450
      Hotel departmental expenses             316     267      567      467
      Management fees                          72      56      117       90
      Other property-level expenses            95      83      176      148
      Depreciation and amortization           119     104      235      191
      Corporate and other expenses             14      21       35       41
        Total operating costs and expenses  1,107     954    2,010    1,669
    Operating profit                          284     227      418      337
    Interest income                            12       9       18       14
    Interest expense                         (136)   (107)    (230)    (198)
    Net gains on property transactions          1       1        2        2
    Minority interest expense                   -      (3)      (4)      (7)
    Equity in earnings (losses) of
     affiliates                                 3      (6)       5       (5)
    Income before income taxes                164     121      209      143
    Provision for income taxes                (11)    (17)      (6)     (18)
    Income from continuing operations         153     104      203      125
    Income from discontinued operations (b)     1     239      145      399
    Net income                                154     343      348      524
    Less: Distributions on preferred
     units (c)                                 (2)     (4)      (4)     (10)
    Issuance costs of redeemed preferred
     units                                      -      (6)       -       (6)
    Net income available to common
     unitholders                             $152    $333     $344     $508
    Basic earnings per common unit:
    Continuing operations                    $.28    $.18     $.37     $.24
    Discontinued operations                     -     .47      .27      .88
    Basic earnings per common unit           $.28    $.65     $.64    $1.12
    Diluted earnings per common unit:
    Continuing operations                    $.27    $.18     $.36     $.24
    Discontinued operations                     -     .44      .26      .87
    Diluted earnings per common unit         $.27    $.62     $.62    $1.11

    (a)  Our consolidated statements of operations presented above have been
         prepared without audit. Certain information and footnote
         disclosures normally included in financial statements presented in
         accordance with GAAP have been omitted. When distinguishing between
         Host and Host LP, the primary difference is the partnership
         interests in Host LP held by outside partners, which is reflected
         as minority interest in our consolidated balance sheets and
         minority interest expense in our consolidated statements of
         operations. The consolidated statements of operations should be
         read in conjunction with the consolidated financial statements and
         notes thereto included in our most recent Annual Report on Form 10-
         K.

    (b)  Reflects the results of operations (including $3 million of
         business interruption insurance proceeds) and gain (loss) on sale,
         net of the related income tax, for seven properties sold in 2007
         and seven properties sold in 2006.

    (c)  Represents the original issuance cost associated with the
         redemption of the class C preferred units in 2006.
 
 

                          HOST HOTELS & RESORTS L.P.
          Reconciliation of Net Income to EBITDA and Adjusted EBITDA
                           (unaudited, in millions)

                                           Quarter ended   Year-to-date ended
                                          June 15, June 16, June 15, June 16,
                                            2007     2006     2007     2006

    Net income                              $154     $343     $348     $524
    Interest expense                         136      107      230      198
    Depreciation and amortization            119      104      235      191
    Income taxes                              11       17        6       18
    Discontinued operations (a)                -        5        2        7
    EBITDA                                   420      576      821      938
    (Gains)/losses on dispositions             2     (234)    (139)    (387)
    Amortization of deferred gains            (1)      (1)      (2)      (2)
    Consolidated partnership
     adjustments:
    Minority interest expense                  -        3        4        7
    Distributions to minority partners        (5)      (4)      (5)      (4)
    Equity investment adjustments:
    Equity in earnings of affiliates          (3)       6       (5)       5
    Distributions received from equity
     investments                               1        1        3        2
    Adjusted EBITDA of Host LP              $414     $347     $677     $559

    (a)   Reflects the interest expense, depreciation and amortization and
          income taxes included in discontinued operations.
 
 

                         HOST HOTELS & RESORTS, INC.
       Reconciliation of Net Income Available to Common Stockholders to
                 Funds From Operations per Diluted Share for
                       Third Quarter 2007 Forecasts (a)
              (unaudited, in millions, except per share amounts)

                                                      Low-end of Range
                                                Third Quarter 2007 Forecast

                                                                   Per Share
                                                Income    Shares      Amount
    Forecast net income available to
     common stockholders                         $63       522.4       $.12
    Adjustments:
    Depreciation and amortization                118           -        .22
    Gain on dispositions, net of taxes            (6)          -       (.01)
    Partnership adjustments                        4           -        .01
    FFO of minority partners of Host LP (b)       (6)          -       (.01)
    Adjustment for dilutive securities:
    Assuming distribution of common shares
     granted under the comprehensive stock
     plan less shares assumed purchased at
     average market price                          -         1.0          -
    Assuming conversion of 3.25%
     Exchangeable Senior Debentures                4        29.5       (.01)
    FFO per diluted share                       $177       552.9       $.32
 

                                                     High-end of Range
                                                Third Quarter 2007 Forecast

                                                                    Per Share
                                                Income    Shares      Amount

    Forecast net income available to
     common stockholders                         $68       522.4       $.13
    Adjustments:
    Depreciation and amortization                118           -        .22
    Gain on dispositions, net of taxes            (6)          -       (.01)
    Partnership adjustments                        4           -        .01
    FFO of minority partners of Host LP
     (b)                                          (6)          -       (.01)
    Adjustment for dilutive securities:
    Assuming distribution of common shares
     granted under the comprehensive stock
     plan less shares assumed purchased at
     average market price                          -         1.0          -
    Assuming conversion of 3.25%
     Exchangeable Senior Debentures                4        29.5       (.01)
    FFO per diluted share                       $182       552.9       $.33
 
 

                         HOST HOTELS & RESORTS, INC.
       Reconciliation of Net Income Available to Common Stockholders to
   Funds From Operations per Diluted Share for Full Year 2007 Forecasts (a)
              (unaudited, in millions, except per share amounts)

                                                       Low-end of Range
                                                    Full Year 2007 Forecast

                                                                     Per Share
                                               Income      Shares      Amount
    Forecast net income available to
     common stockholders                        $593       522.2       $1.14
    Adjustments:
    Depreciation and amortization                530           -        1.01
    Gain on dispositions, net of taxes          (147)          -        (.28)
    Partnership adjustments                       25           -         .05
    FFO of minority partners of Host LP
     (b)                                         (34)          -        (.07)
    Adjustment for dilutive securities:
    Assuming distribution of common shares
     granted under the comprehensive stock
     plan less shares assumed purchased at
     average market price                          -         1.0           -
    Assuming conversion of 3.25%
     Exchangeable Senior Debentures               19        29.5        (.07)
    FFO per diluted share                       $986       552.7       $1.78
 

                                                     High-end of Range
                                                  Full Year 2007 Forecast

                                                                     Per Share
                                               Income      Shares      Amount
    Forecast net income available to
     common stockholders                        $625       522.2       $1.20
    Adjustments:
    Depreciation and amortization                530           -        1.01
    Gain on dispositions, net of taxes          (147)          -        (.28)
    Partnership adjustments                       26           -         .05
    FFO of minority partners of Host LP
     (b)                                         (35)          -        (.07)
    Adjustment for dilutive securities:
    Assuming distribution of common
     shares granted under the
     comprehensive stock plan less
     shares assumed purchased at average
     market price                                  -         1.0           -
    Assuming conversion of 3.25%
     Exchangeable Senior Debentures               19        29.5        (.07)
    FFO per diluted share                     $1,018       552.7       $1.84

    (a)  The third quarter and full year 2007 forecasts were based on the
         following assumptions:

         --   Comparable hotel plus the Starwood Portfolio RevPAR will
              increase 5.5% and 6.5% for the third quarter and 6.5% and 7.5%
              for the full year for the low and high ends of the forecasted
              range, respectively.
         --   Comparable hotel RevPAR will increase 6% and 7% for the full
              year for the low and high ends of the forecasted range,
              respectively.
         --   Comparable hotel adjusted operating profit margins will
              increase 75 basis points and 100 basis points for the full year
              for the low and high ends of the forecasted range,
              respectively.
         --   We expect to have incremental hotel dispositions of
              approximately $300 million beyond the $330 million of hotels
              sold during the first quarter of 2007.
         --   We expect to spend approximately $650 million on capital
              expenditures in 2007, including approximately $315 million for
              maintenance capital expenditures. The remainder of the
              expenditures will be for return on investment/repositioning
              projects.
         --   Approximately $1.0 billion of debt has been refinanced or
              repaid. Charges, net of the minority interest benefit, totaling
              approximately $45 million ($.08 of FFO per diluted share)
              related to costs associated with the debt repayments have been
              incurred during the year. No further prepayment costs related to
              debt refinancings or repayments are expected for the remainder
              of 2007.
         --   Fully diluted weighted average shares for FFO per diluted share
              will be 552.9 million for the third quarter and 552.7 million
              for the full year and for earnings per diluted share will be
              523.4 million for the third quarter and 552.7 million for the
              full year.

    The amounts shown in these forecasts are based on these and other
    assumptions, as well as management's estimate of operations for 2007.
    These forecasts are forward-looking and are not guarantees of future
    performance and involve known and unknown risks, uncertainties and other
    factors which may cause actual transactions, results and performance to
    differ materially from those expressed or implied by these forecasts.
    Although we believe the expectations reflected in the forecasts are based
    upon reasonable assumptions, we can give no assurance that the
    expectations will be attained or that the results will be materially
    different. Risks that may affect these assumptions and forecasts include
    the following:

         --   the level of RevPAR and margin growth may change significantly;
         --   the amount and timing of acquisitions and dispositions of hotel
              properties is an estimate that can substantially affect
              financial results, including such items as net income,
              depreciation and gains (losses) on dispositions;
         --   the amount and timing of debt prepayments is an estimate that
              can substantially affect the level of interest expense and net
              income;
         --   the level of capital expenditures may change significantly,
              which will directly affect the level of depreciation expense
              and net income; and
         --   other risks and uncertainties associated with our business
              described herein and in the Company's filings with the SEC.

    (b)  Represents FFO attributable to the minority interests in Host LP.
 
 

                         HOST HOTELS & RESORTS, INC.
        Schedule of Comparable Hotel Adjusted Operating Profit Margin
                       for Full Year 2007 Forecasts (a)
              (unaudited, in millions, except hotel statistics)

                                                    Full Year 2007 Forecast

                                                   Low-end          High-end
                                                  of range          of range

    Operating profit margin under GAAP (b)           16.2%             16.6%
    Comparable hotel adjusted operating
     profit margin (c)                              27.65%            27.90%

    Comparable hotel sales
      Room                                          $2,528            $2,551
      Other                                          1,544             1,558
        Comparable hotel sales (d)                   4,072             4,109
    Comparable hotel expenses
      Rooms and other departmental costs             1,656             1,667
      Management fees, ground rent and
       other costs                                   1,290             1,296
        Comparable hotel expenses (e)                2,946             2,963
    Comparable hotel adjusted operating
     profit                                          1,126             1,146
    Non-comparable hotel results, net                  351               361
    Office buildings and select service
     properties, net                                     9                 9
    Depreciation and amortization                     (530)             (530)
    Corporate and other expenses                       (80)              (80)
        Operating profit                              $876              $906

    (a)   Forecasted comparable hotel results include assumptions on the
          number of hotels that will be included in our comparable hotel set
          in 2007. We have assumed that 94 hotels will be classified as
          comparable as of December 31, 2007. No assurances can be made as to
          the hotels that will be in the comparable hotel set for 2007. Also,
          see the notes following the table reconciling net income available
          to common shareholders to Funds From Operations per Diluted Share
          for assumptions relating to the full year 2007 forecasts.

    (b)   Operating profit margin under GAAP is calculated as the operating
          profit divided by the forecast total revenues per the consolidated
          statements of operations. See (d) below for forecasted revenues.

    (c)   Comparable hotel adjusted operating profit margin is calculated as
          the comparable hotel adjusted operating profit divided by the
          comparable hotel sales per the table above. We forecasted an
          increase in margins of 75 basis points to 100 basis points over the
          comparable adjusted operating profit margin of 26.9%.

    (d)   The reconciliation of forecast total revenues to the forecast
          comparable hotel sales is as follows (in millions):
 

                                                         Full Year 2007

                                                   Low-end          High-end
                                                   of range          of range

          Revenues                                  $5,416            $5,466
          Non-comparable hotel sales                (1,303)           (1,316)
          Hotel sales for the property
           for which we record rental
           income, net                                  53                53
          Rental income for office
           buildings and select service
           hotels                                      (94)              (94)
          Comparable hotel sales                    $4,072            $4,109

     (e)  The reconciliation of forecast operating costs and expenses to the
          comparable hotel expenses is as follows (in millions):

                                                         Full Year 2007

                                                    Low-end          High-end
                                                   of range          of range

          Operating costs and expenses              $4,540            $4,560
          Non-comparable hotel expenses               (952)             (955)
          Hotel expenses for the property
           for which we record rental
           income                                       53                53
          Rent expense for office
           buildings and select service
           hotels                                      (85)              (85)
          Depreciation and amortization               (530)             (530)
          Corporate and other expenses                 (80)              (80)
          Comparable hotel expenses                 $2,946            $2,963
 
 

                         HOST HOTELS & RESORTS, L.P.
                  Reconciliation of Net Income to EBITDA and
               Adjusted EBITDA for Full Year 2007 Forecasts (a)
                           (unaudited, in millions)

                                                         Full Year 2007

                                                    Low-end          High-end
                                                    of range          of range

    Net income                                        $624              $656
      Interest expense                                 429               429
      Depreciation and amortization                    530               530
      Income taxes                                      17                15
    EBITDA                                           1,600             1,630
      Gains on dispositions                           (147)             (147)
      Consolidated partnership adjustments:
        Minority interest expense                        6                 6
        Distributions to minority partners              (8)               (8)
      Equity investment adjustments:
        Equity in earnings of affiliates               (11)              (11)
        Distributions received from equity
         investments                                    10                10
    Adjusted EBITDA of Host LP                      $1,450            $1,480

    (a)   The amounts shown in these reconciliations are based on
          management's estimate of operations for 2007. These tables are
          forward-looking and as such contain assumptions by management based
          on known and unknown risks, uncertainties and other factors which
          may cause the actual transactions, results, performance, or
          achievements to be materially different from any future
          transactions, results, performance or achievements expressed or
          implied by this table. General economic condition, competition and
          governmental actions will affect future transactions, results
          performance and achievements. Although we believe the expectations
          in this reconciliation are based upon reasonable assumptions, we
          can give no assurance that the expectations will be attained or
          that any deviations will not be material. For purposes of the full
          year forecasts, we have utilized the same, previously detailed
          assumptions as those utilized for the full year forecasts for Host
          Hotels & Resorts, Inc.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 and Fortune 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper upscale hotels. The Company currently owns 121 properties with approximately 64,000 rooms, and also holds a minority interest in a joint venture that owns seven hotels in Europe with approximately 2,700 rooms. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Four Seasons®, Hilton® and Swissotel®* in the operation of properties in over 50 major markets worldwide. For additional information, please visit the Company's website at www.hosthotels.com.

Note: This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward- looking statements are made. These risks include, but are not limited to: national and local economic and business conditions, including the potential for terrorist attacks, that will affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; relationships with property managers; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; our ability to complete acquisitions and dispositions; and our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes and other risks and uncertainties associated with our business described in the Company's filings with the SEC. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of July 17, 2007, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

* This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release.

Host Hotels & Resorts, Inc., herein referred to as "we" or "Host," is a self-managed and self-administered real estate investment trust (REIT) that owns hotel properties. We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Hotels & Resorts, L.P., or Host LP, of which we are the sole general partner. For each share of our common stock, Host LP has issued to us one unit of operating partnership interest, or OP Unit. When distinguishing between Host and Host LP, the primary difference is approximately 3% of the partnership interests in Host LP held by outside partners as of June 15, 2007, which is reflected as minority interest in our consolidated balance sheets and minority interest expense in our consolidated statements of operations. Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.

For information on our reporting periods and non-GAAP financial measures (including Adjusted EBITDA, FFO per diluted share and comparable hotel adjusted operating profit margin) which we believe is useful to investors, see the Notes to the Financial Information included in this release.
.
Contact:

Host Hotels & Resorts, Inc.
www.hosthotels.com
.
.
Also See: Host Hotels Records Net Income of $738 million for Full Year 2006; Nation's Largest Lodging REIT Reports RevPAR Up 8.1% While Occupancy Declined 0.9 Percentage Points / Hotel Operating Statistics / February 2007
.
.

 
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