Mr. Christopher J. Nassetta, executive vice president and chief operating officer, stated, "The City of Memphis and Shelby County have made a major commitment to expand the Memphis convention center and continue the successful redevelopment of Memphis downtown area. We are convinced that the conversion of the existing hotel to the Marriott brand will increase the utilization of the convention center, strengthen the Memphis economy and greatly improve the bottom line performance of the hotel itself."

Mr. Nassetta further noted, "An essential part of this transaction was the support of the City and County. In order to induce Host Marriott to acquire, renovate and expand the existing convention hotel, the City of Memphis and Shelby County have made certain lease payment concessions, agreed to provide a 25-year tax freeze and other significant cost saving commitments. These investments by the Memphis community will lead to higher employment and economic growth in downtown Memphis, while at the same time it will enable Host Marriott to achieve an attractive yield on its investment."

The hotel connects to the Memphis Cook Convention Center via an enclosed second floor walkway and is located at Memphis' "gateway." The hotel consists of a three-story lowrise structure under a fifteen story guestroom tower. The lowrise portion contains the hotel lobby, lounges, restaurant, meeting space and health club. The three top floors of the guestroom tower are concierge levels with two lounges located on the 18th floor.

Currently, the Convention Center is undergoing a renovation and expansion. In exchange for the City and County support, Host Marriott is committing to expand the hotel by 200 guestrooms to accommodate expected additional demand created by the Convention Center. Additionally, the hotel will provide catering for the Convention Center which will include a newly built 30,000 square foot ballroom.

Host Marriott is a lodging real estate company which owns 104 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.

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.