The hotel was originally built as part of a mixed-use project, including 400,000 square feet of first class office space, 64,000 square feet of upscale retail and a 1,676 seat theater. As part of this major recapitalization and restructuring the hotel was separated from the other mixed use components, the partnership acquired fee ownership of the land under the hotel and the hotel�s mortgage debt was refinanced. Beginning in 2003, the restructuring also provides Host Marriott with the option of acquiring the remaining interest in the JW Marriott Hotel for nominal consideration.  After the recapitalization, the partnership will have a $95 million fixed rate first mortgage, with an interest rate of 8.77 percent. The 2000 EBITDA for the hotel is projected to be approximately $19 million.  

Mr. Christopher J. Nassetta, president and chief executive officer-elect, stated, �We are pleased to make an investment in this outstanding hotel just two blocks from the White House in the heart of Washington, DC. The strong economics combined with the quality of this asset and the outstanding location make this an excellent opportunity.  Our preferred equity contribution is expected to generate a first year return in excess of 16%, and position us to ultimately acquire 100% of this superior asset at a very attractive price.�

The JW Marriott Hotel is a fifteen-story structure consisting of 772 guestrooms, three restaurants, approximately 30,000 square feet of meeting space and a health club. The JW Marriott has been one of the more prominent hotels in Washington DC since it opened for business in 1984. In addition to its prominent role as a group-oriented hotel, the JW Marriott is within walking distance of tourist attractions such as the White House and the Smithsonian. In addition, the hotel is two blocks from the Metro Center subway stop and is in the heart of Washington, DC�s business district.

Mr. James F. Risoleo, executive vice president of development, added, �We are very pleased to complete this transaction. The JW Marriott is an extraordinary hotel in an excellent location. The property will further benefit from the demand generated by Washington�s new 2.1 million square foot convention center which is under construction with a scheduled completion date of December 2002.�

Host Marriott is a lodging real estate investment trust which currently owns or holds controlling interests in 122 upper upscale and luxury hotel properties primarily operated under the Marriott, Ritz-Carlton, Hyatt, Four Seasons and Swissotel brand names. 

This press release includes various references to EBITDA. All forward- looking statements involve 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 such forward-looking statements.