BETHESDA, Md., May 27, 1998 -  Host Marriott Corporation (NYSE: HMT), in a $75 million transaction, has acquired the Ritz-Carlton, Phoenix and is in discussions with the Pivotal Simon Group on the joint development of an expansion to the luxury hotel. The 1998 Earnings Before Interest Expense, Taxes, Depreciation, Amortization and other non-cash items (EBITDA) from the hotel is projected to be $7.8 million.

Mr. Terence C. Golden, president and chief executive officer, stated, "We are delighted to add the Ritz-Carlton, Phoenix as the eighth Ritz-Carlton in our high quality portfolio of assets. Its superior location, in the heart of the area's Class A office market, the Camelback Corridor, makes it the premier business hotel in Phoenix. Due to the strong demand for office space and expected additions to office inventory in the area, the hotel's ability to draw from this continued growth in the market bodes well for its future success.

Mr. Golden continued, "Our 1998 acquisition progress has been outstanding. We have already completed or announced acquisitions in excess of $2.3 billion in 1998 and have a very full pipeline. We have raised our 1998 acquisition target to $2.8 billion, which includes the recently announced purchase of the Blackstone Portfolio of 13 luxury and upscale full-service hotels for an aggregate value of $1.78 billion."

The 281 room Ritz-Carlton, Phoenix was completed in 1988 and is located in the 1.5 million square foot Camelback Esplanade mixed use development at Camelback and 24th, at the "epicenter" of Phoenix's Camelback Corridor. The hotel has a theme restaurant (Bistro 24), a private dining room, lobby lounge, cigar bar, approximately 30,000 square feet of meeting space including a 7,700 square foot ballroom, a fitness center, and an outdoor pool. The hotel is the recipient of the AAA Four Diamond and Mobil Four Star awards.

Host Marriott is a lodging real estate company which owns 99 upscale and luxury full-service hotels operated primarily under the Marriott and Ritz- Carlton brand names. Additionally, the company owns 31 senior living communities, all of which are operated by Marriott International. The company also serves as a general partner and holds minority interests in various unconsolidated partnerships which own 240 lodging properties, 20 of which are full-service hotels.

For further information on Host Marriott Corporation, please visit the Web site at http://www.hostmarriott.com. The Pivotal Simon Group, a partnership between The Pivotal Group of Phoenix and Los Angeles-based William E. Simon and Sons Realty, originally acquired the Ritz-Carlton in May 1996.

Certain matters within this news release are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 and as such may involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of Host Marriott to be different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although Host Marriott believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance, that its expectations will be attained. These risks are detailed from time to time in the company's filings with the Securities and Exchange Commission.