Host Marriott Corporation, herein referred to as "we" or "Host Marriott," is a self-managed and self-administered real estate investment trust (REIT) that owns primarily hotel properties.  We conduct our operations as an umbrella partnership REIT through an operating partnership, Host Marriott, 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 Marriott and Host LP, the primary difference is the 7% of the partnership interests in Host LP held by outside partners as of December 31, 2003, which is reflected as minority interest in our balance sheets and minority interest expense in our statements of operations.  Readers are encouraged to find further detail regarding our organizational structure in our annual report on Form 10-K.
    
Reporting Periods for Hotel Operating Statistics and Comparable Hotel
Results
    
The results we report are based on results of our hotels reported to us by our hotel managers.  Our hotel managers use different reporting periods.  Marriott International, Inc., the manager of the majority of our properties, uses a year ending on the Friday closest to December 31 and reports twelve weeks of operations for the first three quarters and sixteen or seventeen weeks for the fourth quarter of the year for its Marriott-managed hotels.  In contrast, other managers of our hotels, such as Hyatt, report results on a monthly basis.  Host Marriott, as a REIT, is required by tax laws to report results on a calendar year.  As a result, we elected to adopt the reporting periods used by Marriott International modified so that our fiscal year always ends on December 31 to comply with REIT rules.  Our first three quarters of operations end on the same day as Marriott International but our fourth quarter ends on December 31.
    
Two consequences of the reporting cycle we have adopted are: (1) quarterly start dates will usually differ between years, except for the first quarter which always commences on January 1, and (2) our first and fourth quarters of operations and year-to-date operations may not include the same number of days as reflected in prior years.  For example, the third quarter of 2003 ended on September 12 and the third quarter of 2002 ended on September 6, though both quarters reflect twelve weeks of operations.  In contrast, fourth quarter results for 2003 reflected 110 days of operations, while our fourth quarter results for 2002 reflected 116 days of operations.
    
In contrast to the reporting periods for our statement of operations, our hotel operating statistics (i.e., RevPAR, average daily rate and average occupancy) and our comparable hotel results (comparable hotel revenues, expenses and adjusted operating profit) are always reported based on the reporting cycle used by Marriott International for our Marriott-managed hotels.  This facilitates year-to-year comparisons, as each reporting period will be comprised of the same number of days of operations as in the prior year (except in the case of fourth quarters comprised of seventeen weeks, such as fiscal year 2002, versus sixteen weeks).  This means, however, that the reporting periods we use for hotel operating statistics may differ slightly from the reporting periods used for our statements of operations for the first and fourth quarters and the full year.  For the hotel operating statistics and comparable hotel results reported herein:

• Hotel results for fiscal year 2003 reflect 52 weeks of operations for the period from January 4, 2003 to January 2, 2004 for our Marriott-managed properties and results from January 1, 2003 to December 31, 2003 for operations of all other hotels which report results on a monthly basis.
• Hotel results for fiscal year 2002 reflect 53 weeks of operations for the period from December 29, 2001 to January 3, 2003 for our Marriott-managed hotels and results from January 1, 2002 to December 31, 2002 for operations of all other hotels which report results on a monthly basis.
• Hotel results for the fourth quarter of 2003 reflect 16 weeks of operations for the period from September 13, 2003 to January 2, 2004 for our Marriott-managed hotels and results from September 1, 2003 to December 31, 2003 for operations of all other hotels which report results on a monthly basis.
• Hotel results for the fourth quarter of 2002 reflect 17 weeks of operations for the period from September 7, 2002 to January 3, 2003 for our Marriott-managed hotels and results from September 1, 2002 to December 31, 2002 for operations of all other hotels which report results on a monthly basis.

• The New York Marriott Financial Center (substantially damaged in the September 11, 2001 terrorist attacks and re-opened in January 2002);
• The Ritz-Carlton, Naples Golf Resort (opened in January 2002);
• The Boston Marriott Copley Place (acquired in June 2002);
• The JW Marriott, Washington, D.C. (consolidated in our financial statements beginning in the second quarter of 2003); and
• The Hyatt Regency Maui Resort and Spa (acquired in November 2003).

Included in this press release are certain "non-GAAP financial measures," which are measures of our historical or future financial performance that are not calculated and presented in accordance with generally accepted accounting principles, or GAAP, within the meaning of applicable SEC rules. They are as follows: (i) Funds From Operations (FFO) per diluted share, (ii) EBITDA, (iii) Adjusted EBITDA and (iv) Comparable Hotel Operating Results. The following discussion defines these terms and presents why we believe they are useful supplemental measures of our performance.
    
FFO per Diluted Share

We present FFO per diluted share as a non-GAAP measure of our performance in addition to our earnings per share (calculated in accordance with GAAP).  We calculate FFO per diluted share for a given operating period as our FFO (defined as set forth below) for such period divided by the number of fully diluted shares outstanding during such period.  The National Association of Real Estate Investment Trusts (NAREIT) defines FFO as net income (calculated in accordance with GAAP) excluding gains (or losses) from sales of real estate, the cumulative effect of changes in accounting principles, real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. We present FFO on a per share basis after making adjustments for the effects of dilutive securities, including the payment of preferred stock dividends, in accordance with NAREIT guidelines.
    
We believe that FFO per diluted share is a useful supplemental measure of our operating performance and that the presentation of FFO per diluted share, when combined with the primary GAAP presentation of earnings per share, provides beneficial information to investors.  By excluding the effect of real estate depreciation, amortization and gains and losses from sales of real estate, all of which are based on historical cost accounting and which may be of limited significance in evaluating current performance, we believe that such measure can facilitate comparisons of operating performance between periods and with other REITs, even though FFO per diluted share does not represent an amount that accrues directly to holders of our common stock.  Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time.  As noted by NAREIT in its April 2002 "White Paper on Funds from Operations," since real estate values have historically risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves.  For these reasons, NAREIT adopted the definition of FFO in order to promote an industry-wide measure of REIT operating performance.
    
EBITDA
    
Earnings before Interest Expense, Income Taxes, Depreciation and Amortization (EBITDA) is a commonly used measure of performance in many industries.  Management believes EBITDA provides useful information to investors regarding our results of operations because it helps us and our investors evaluate the ongoing operating performance of our properties and facilitates comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital-intensive companies.  Management uses EBITDA to evaluate property-level results and as one measure in determining the value of acquisitions and dispositions and, like FFO per diluted share, it is widely used by management in the annual budget process.
    
Adjusted EBITDA
    
Management has historically adjusted EBITDA when evaluating our performance because we believe that the exclusion of certain additional recurring and non-recurring items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA, when combined with the primary GAAP presentation of net income, is beneficial to an investor's complete understanding of our operating performance.  We adjust EBITDA for the following items, which may occur in any period, and refer to this measure as Adjusted EBITDA:

• Gains and Losses on Dispositions and Related Debt Extinguishments -- We exclude the effect of gains and losses recorded on the disposition of assets in our consolidated statement of operations and the related debt extinguishments because we believe that including them in EBITDA is not consistent with reflecting the ongoing performance of our remaining assets. In addition, material gains or losses from the depreciated value of the assets disposed of and the related debt extinguishments could be less important to investors given that the depreciated asset often does not reflect the market value of real estate assets (as noted above for FFO).
• Consolidated Partnership Adjustments -- We exclude the minority interest in the income or loss of our consolidated partnerships as presented in our consolidated statement of operations because we believe that including these amounts in EBITDA does not reflect the effect of the minority interest position on our performance because these amounts include our minority partners' pro-rata portion of depreciation, amortization and interest expense. However, we believe that the cash distributions paid to minority partners are a more relevant measure of the effect of our minority partners' interest on our performance, and we have deducted these cash distributions from Adjusted EBITDA.
• Equity Investment Adjustments -- We exclude the equity in earnings (losses) of unconsolidated investments in partnerships and joint ventures as presented in our consolidated statement of operations because our percentage interest in the earnings (losses) does not reflect the impact of our minority interest position on our performance and these amounts include our pro-rata portion of depreciation, amortization and interest expense. However, we believe that cash distributions we receive are a more relevant measure of the performance of our investment and, therefore, we include the cash distributed to us from these investments in the calculation of Adjusted EBITDA.
• Cumulative effect of a change in accounting principle -- Infrequently, the Financial Accounting Standards Board (FASB) promulgates new accounting standards that require the statement of operations to reflect the cumulative effect of a change in accounting principle. We exclude these one-time adjustments because they do not reflect actual performance of the company for that period.
• Impairment Losses -- We exclude the effect of impairment losses recorded because we believe that including them in EBITDA is not consistent with reflecting the ongoing performance of our remaining assets.  In addition, we believe that impairment charges are similar to gains and losses on dispositions and depreciation expense, both of which are also excluded from EBITDA.

       LIABILITIES AND SHAREHOLDERS' EQUITY
    Debt                                            $3,180            $3,247
     Senior notes                                    2,205             2,289
     Mortgage debt                                     101               102
     Other                                           5,486             5,638
                                                       108               118
    Accounts payable and accrued expenses                2                 -
    Liabilities associated with assets
     held for sale                                     166               252
    Other liabilities                                5,762             6,008
       Total liabilities
    Interest of minority partners of Host
     Marriott L.P.                                     130               131
    Interest of minority partners of
     other consolidated partnerships                    89                92
    Company-obligated mandatorily
     redeemable convertible preferred
     securities of a subsidiary whose
     sole assets are convertible
     subordinated debentures due 2026
     ("Convertible Preferred Securities")              475               475

    Shareholders' equity
      Cumulative redeemable preferred stock
       (liquidation preference $354
       million), 50 million shares
       authorized; 14.1 million shares
       issued and outstanding                          339               339
      Common stock, par value $.01, 750
       million shares authorized; 320.3
       million shares and 263.7 million
       shares issued and outstanding,
       respectively                                      3                 3
      Additional paid-in capital                     2,617             2,100
      Accumulated other comprehensive
       income (loss)                                    28                (2)
      Deficit                                         (851)             (830)
        Total shareholders' equity                   2,136             1,610
                                                    $8,592            $8,316

    (a) Our consolidated balance sheet as of December 31, 2003 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 the Annual Report on Form 10-K.
 
 

                          HOST MARRIOTT CORPORATION
                   Consolidated Statements of Operations(a)
                   (in millions, except per share amounts)
                                            Quarter ended      Year ended
                                             December 31,      December 31,
                                            2003     2002    2003     2002
    Revenues
     Rooms                                  $622     $650   $2,014   $2,073
     Food and beverage                       369      372    1,095    1,096
     Other                                    72       75      227      246
      Total hotel sales                    1,063    1,097    3,336    3,415
     Rental income(b)                         29       31      100      101
     Other income                              -        -       12        -
      Total revenues                       1,092    1,128    3,448    3,516

    Expenses
     Rooms                                   159      160      508      508
     Food and beverage                       274      273      823      811
     Hotel departmental expenses             290      291      934      905
     Management fees                          42       49      138      156
     Other property-level expenses(b)         85       95      301      294
     Depreciation and amortization           114      113      367      358
     Corporate expenses and other expenses    21        9       61       47
      Total expenses                         985      990    3,132    3,079

    Operating profit                         107      138      316      437
     Interest income                           4        6       11       20
     Interest expense                       (167)    (146)    (491)    (462)
     Net gains on property transactions        1        2        5        5
     Loss on foreign currency and
      derivative contracts                   (17)      (1)     (19)      (2)
     Minority interest income (expense)      (16)       1       (5)      (7)
     Equity in losses of affiliates           (9)      (3)     (22)      (9)
     Dividends on Convertible Preferred
      Securities                             (10)     (10)     (32)     (32)

    Loss before income taxes                (107)     (13)    (237)     (50)
    Benefit from (provision for) income
     taxes                                     3        3       12       (4)

    Loss from continuing operations         (104)     (10)    (225)     (54)
    Income from discontinued operations(c)   230        7      239       38

    Income (loss) before cumulative
     effect of a change in accounting
     principle                               126       (3)      14      (16)
    Cumulative effect of a change in
     accounting principle(d)                  24        -        -        -

    Net income (loss)                        150       (3)      14      (16)

    Less:  dividends on preferred stock       (8)      (8)     (35)     (35)

    Net income (loss) available to common shareholders                           $142     $(11)    $(21)    $(51)
    Basic and diluted earnings (loss) per common share                          $0.46   $(0.04)  $(0.07)  $(0.19)
    (a) Our consolidated statements of operations for the year ended December 31, 2003 and the quarter ended December 31, 2003 and 2002 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 Annual Report on Form 10-K.
    (b) Rental income and expense for the quarter ended and years ended
        December 31, 2003 and 2002 are as follows:
                                              Quarter ended      Year ended
                                           December December December December
                                               31,      31,      31,      31,
                                              2003     2002     2003     2002

    Rental income                              $5       $5      $25      $24
      Full-service                             24       26       75       77
      Limited service and office buildings    $29      $31     $100     $101

    Rental and other expenses (included
     in other property-level expenses)         $2       $2       $7       $7
      Full-service                             24       23       74       73
      Limited service and office buildings    $26      $25      $81      $80

    (c) Reflects the results of operations and gain (loss) on sale, net of the related income tax, for eight properties disposed of during 2003 and one in 2002, five properties classified as held for sale as of December 31, 2003 and the business interruption proceeds, net of expenses, for the New York Marriott World Trade Center hotel for 2003, as well as the gain recorded from the settlement of insurance claims for the hotel of approximately $212 million. This gain is comprised of $156 million in post-2003 business interruption proceeds and $56 million from the disposition of the hotel.
    (d) We adopted Statement of Financial Accounting Standards No. 150, "Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity," or SFAS 150, as of the beginning of our quarter ended September 12, 2003 as required by the pronouncement.  On October 8, 2003, the Financial Accounting Standards Board (FASB) issued guidance with respect to SFAS 150 that issuers whose financial statements include consolidated ventures with finite lives should reflect any minority interests in such consolidated ventures as a liability on the issuer's financial statements presented at its fair value as of the applicable balance sheet date. Under SFAS 150, any fluctuation in the fair value of the minority interest from period to period would be recorded on the issuer's financial statements as interest expense for the change in the fair value of the liability. As a result of applying SFAS 150 in accordance with this guidance from the FASB, we recorded a loss from a cumulative effect of a change in accounting principle of $24 million in our third quarter Form 10-Q.  Additionally, we included minority interests with a fair value of $112 million in our liabilities as of September 12, 2003.

        On November 7, 2003, the FASB issued a FASB Staff Position (FSP) 150-3 indefinitely deferring the application of a portion of SFAS 150 with respect to minority interests in consolidated ventures entered into prior to November 5, 2003 effectively reversing its guidance of October 8, 2003. In accordance with FSP 150-3, we recorded a cumulative effect of a change in accounting principle reversing the impact of our adoption of SFAS 150 with respect to consolidated ventures with finite lives in the fourth quarter of 2003.
 

                          HOST MARRIOTT CORPORATION
                       Earnings (Loss) per Common Share (unaudited, in millions, except per share amount)
                               Quarter ended               Quarter ended
                             December 31, 2003           December 31, 2002

                         Income                       Income
                         (Loss)   Shares     Per      (Loss)   Shares    Per
                        (Numer-  (Denomi-   Share     (Numer- (Denomi-  Share
                          ator)   nator)    Amount     ator)   nator)  Amount

    Net income
     (loss)(a)            $150     310.7     $0.48      $(3)   263.6   $(0.01) Dividends on preferred stock      (8)        -     (0.02)      (8)       -    (0.03)
    Basic and diluted
     earnings (loss)
     available to common
     shareholders per
     share(b)             $142     310.7     $0.46     $(11)   263.6   $(0.04)
 

                                Year ended                   Year ended
                             December 31, 2003           December 31, 2002

                         Income                       Income
                         (Loss)   Shares     Per      (Loss)   Shares    Per
                        (Numer-  (Denomi-   Share     (Numer- (Denomi-  Share
                          ator)   nator)    Amount     ator)   nator)  Amount

    Net income
     (loss)(a)             $14     281.0     $0.05     $(16)   263.0   $(0.06) Dividends on preferred stock     (35)        -     (0.12)     (35)       -    (0.13)
    Basic and diluted
     earnings (loss)
     available to common
     shareholders per
     share(b)             $(21)    281.0    $(0.07)    $(51)   263.0   $(0.19)

    (a) Our results for the fourth quarter of 2003 and for full-year 2003 were significantly affected by several items.  For a discussion of these items, see footnote (c) to the table reconciling net income available to common shareholders to FFO per diluted share included in this release.
    (b) Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted average number of shares of common stock outstanding. Diluted earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders as adjusted for potentially dilutive securities, by the weighted average number of shares of common stock outstanding plus other potentially dilutive securities. Dilutive securities may include shares granted under comprehensive stock plans, those preferred OP Units held by minority partners, other minority interests that have the option to convert their limited partnership interests to common OP Units and the Convertible Preferred Securities.  No effect is shown for any securities that are anti-dilutive.

                          HOST MARRIOTT CORPORATION
                            Hotel Operational Data
                        Comparable Hotels by Region(a)
                                 (unaudited)
                                                    As of December 31, 2003
                                                    No. of            No. of
                                                   Properties          Rooms

    Pacific                                            22             11,526
    Florida                                            11              7,047
    Atlanta                                            15              6,563
    Mid-Atlantic                                        9              6,222
    South Central                                       9              5,700
    North Central                                      15              5,395
    DC Metro                                           11              4,296
    Mountain                                            8              3,313
    International                                       6              2,552
    New England                                         6              2,274
     All Regions                                      112             54,888
 

                                             Quarter ended December 31, 2003
                                                          Average
                                             Average     Occupancy
                                            Daily Rate  Percentages   RevPAR

    Pacific                                   $143.59       65.7%     $94.27
    Florida                                    147.86       65.0       96.13
    Atlanta                                    138.12       62.3       86.06
    Mid-Atlantic                               197.10       76.5      150.87
    South Central                              128.14       73.0       93.57
    North Central                              126.37       64.6       81.61
    DC Metro                                   150.43       67.2      101.09
    Mountain                                   105.22       56.2       59.12
    International                              112.38       73.4       82.46
    New England                                127.12       63.0       80.09
     All Regions                               143.38       66.9       95.86
 

                                            Quarter ended December 31, 2002
                                          Average   Average           Percent
                                            Daily  Occupancy         Change in
                                            Rate  Percentages RevPAR  RevPAR
    Pacific                                $147.41    64.5%   $95.09    -0.9%
    Florida                                 147.01    65.6     96.42    (0.3)
    Atlanta                                 136.00    62.9     85.57     0.6
    Mid-Atlantic                            196.74    76.5    150.48     0.3
    South Central                           133.38    74.4     99.27    (5.7)
    North Central                           125.24    66.5     83.26    (2.0)
    DC Metro                                146.59    66.3     97.17     4.0
    Mountain                                105.98    57.0     60.43    (2.2)
    International                           109.67    69.3     76.01     8.5
    New England                             131.51    71.1     93.54   (14.4)
     All Regions                            143.96    67.2     96.78    (1.0)
 
 

                                                    As of December 31, 2003

                                                    No. of            No. of
                                                   Properties          Rooms

    Pacific                                            22             11,526
    Florida                                            11              7,047
    Atlanta                                            15              6,563
    Mid-Atlantic                                        9              6,222
    South Central                                       9              5,700
    North Central                                      15              5,395
    DC Metro                                           11              4,296
    Mountain                                            8              3,313
    International                                       6              2,552
    New England                                         6              2,274
     All Regions                                      112             54,888
 
 

                                              Year ended December 31, 2003
                                                         Average
                                             Average    Occupancy
                                            Daily Rate  Percentages   RevPAR

    Pacific                                   $146.12       68.0%     $99.29
    Florida                                    155.59       69.5      108.11
    Atlanta                                    134.29       65.2       87.58
    Mid-Atlantic                               178.89       74.5      133.27
    South Central                              128.11       75.1       96.25
    North Central                              121.81       66.4       80.88
    DC Metro                                   146.07       70.5      102.91
    Mountain                                   103.61       61.9       64.16
    International                              110.95       67.9       75.33
    New England                                122.83       62.3       76.47
     All Regions                               140.86       68.8       96.85
 
 

                                             Year ended December 31, 2002
                                          Average   Average           Percent
                                            Daily  Occupancy         Change in
                                            Rate  Percentages RevPAR  RevPAR
    Pacific                                $150.77    69.3%  $104.42   -4.9%
    Florida                                 153.37    70.3    107.88    0.2
    Atlanta                                 138.70    66.4     92.03   (4.8)
    Mid-Atlantic                            186.41    76.7    143.05   (6.8)
    South Central                           132.39    77.2    102.16   (5.8)
    North Central                           120.89    67.8     82.00   (1.4)
    DC Metro                                144.29    69.6    100.42    2.5
    Mountain                                107.87    64.1     69.17   (7.3)
    International                           110.03    71.0     78.09   (3.5)
    New England                             129.97    69.3     90.02  (15.1)
     All Regions                            143.60    70.4    101.07   (4.2)
 
 

                          HOST MARRIOTT CORPORATION
                            Hotel Operational Data
                     All Full-Service Hotels by Region(a)
                                 (unaudited)
                                                    As of December 31, 2003
                                                     No. of            No. of
                                                   Properties(b)      Rooms(b)

    Pacific                                            23             12,332
    Florida                                            12              7,342
    Atlanta                                            15              6,563
    Mid-Atlantic                                       10              6,726
    South Central                                       9              5,700
    North Central                                      15              5,395
    DC Metro                                           12              5,068
    Mountain                                            8              3,313
    International                                       6              2,552
    New England                                         7              3,413
      All Regions                                     117             58,404
 
 

                                              Quarter ended December 31, 2003
                                                          Average
                                              Average    Occupancy
                                            Daily Rate  Percentages    RevPAR

    Pacific                                   $147.23      65.8%       $96.82
    Florida                                    149.12       64.4        96.08
    Atlanta                                    138.12       62.3        86.06
    Mid-Atlantic                               197.99       76.4       151.34
    South Central                              125.93       72.6        91.38
    North Central                              126.37       64.6        81.61
    DC Metro                                   153.28       68.0       104.31
    Mountain                                   105.22       56.2        59.12
    International                              112.38       73.4        82.46
    New England                                149.34       67.1       100.27
      All Regions                              145.84       67.1        97.88
 
 

                                              Quarter ended December 31, 2002
                                          Average   Average           Percent
                                            Daily  Occupancy         Change in
                                            Rate  Percentages RevPAR   RevPAR

    Pacific                                $146.04   64.6%    $94.40    2.6%
    Florida                                 145.41    64.6     93.93     2.3
    Atlanta                                 136.00    62.9     85.57     0.6
    Mid-Atlantic                            197.74    76.4    151.07     0.2
    South Central                           129.08    73.9     95.43    (4.2)
    North Central                           125.24    66.5     83.26    (2.0)
    DC Metro                                141.88    66.1     93.74    11.3
    Mountain                                105.98    57.0     60.43    (2.2)
    International                           109.67    69.3     76.01     8.5
    New England                             151.95    71.6    108.85    (7.9)
      All Regions                           144.15    67.3     96.97     0.9
 
 

                                                   As of December 31, 2003

                                                   No. of            No. of
                                                 Properties(b)       Rooms(b)

    Pacific                                            23             12,332
    Florida                                            12              7,342
    Atlanta                                            15              6,563
    Mid-Atlantic                                       10              6,726
    South Central                                       9              5,700
    North Central                                      15              5,395
    DC Metro                                           12              5,068
    Mountain                                            8              3,313
    International                                       6              2,552
    New England                                         7              3,413
      All Regions                                     117             58,404
 
 

                                             Year ended December 31, 2003
                                                          Average
                                              Average    Occupancy
                                            Daily Rate  Percentages    RevPAR

    Pacific                                   $147.11      68.0%      $100.02
    Florida                                    155.97       69.0       107.56
    Atlanta                                    134.29       65.2        87.58
    Mid-Atlantic                               180.11       74.3       133.85
    South Central                              124.93       75.0        93.76
    North Central                              121.81       66.4        80.88
    DC Metro                                   145.09       71.1       103.13
    Mountain                                   103.61       61.9        64.16
    International                              110.95       67.9        75.33
    New England                                142.32       67.5        96.11
      All Regions                              141.93       69.1        98.01
 

                                             Year ended December 31, 2002
                                          Average   Average           Percent
                                            Daily  Occupancy         Change in
                                            Rate  Percentages RevPAR   RevPAR

    Pacific                                $149.43   69.3%   $103.63   -3.5%
    Florida                                 152.53    69.3    105.76     1.7
    Atlanta                                 138.70    66.4     92.03    (4.8)
    Mid-Atlantic                            186.47    76.5    142.70    (6.2)
    South Central                           128.47    76.5     98.32    (4.6)
    North Central                           120.89    67.8     82.00    (1.4)
    DC Metro                                139.70    69.9     97.59     5.7
    Mountain                                107.87    64.1     69.17    (7.2)
    International                           110.03    71.0     78.09    (3.5)
    New England                             142.27    70.0     99.65    (3.6)
      All Regions                           143.19    70.4    100.74    (2.7)

    (a) See the introductory notes to financial information for a discussion of reporting periods and comparable hotel results.
    (b) The number of properties and the room count reflect all consolidated properties as of December 31, 2003. However, the operating statistics include the results of operations for the nine properties sold in 2003 and 2002 prior to their disposition and the results of operations of properties acquired subsequent to the date of their acquisition.
 
 

                          HOST MARRIOTT CORPORATION
                            Hotel Operational Data
                            Schedule of Comparable
                              Hotel Results (a)
              (unaudited, in millions, except per share amounts)
                                             Quarter ended       Year ended
                                              December 31,      December 31,
                                             2003     2002     2003     2002

    Number of hotels                          112      112      112      112
    Number of rooms                        54,888   54,888   54,888   54,888
    Percent change in Comparable Hotel
     RevPAR                                 -1.0%             -4.2%
    Operating profit margin under
     GAAP(b)                                 9.8%    12.2%     9.2%    12.4%
    Comparable hotel adjusted
     operating profit margin(c)             21.7%    23.7%    21.6%    24.6%
    Comparable hotel sales
     Room                                    $599     $635   $1,937   $2,052
     Food and beverage                        360      367    1,061    1,091
     Other                                     68       77      224      250
       Comparable hotel sales(d)            1,027    1,079    3,222    3,393

    Comparable hotel expenses
     Room                                     154      158      490      502
     Food and beverage                        265      268      791      798
     Other                                     43       44      137      142
     Management fees, ground rent and
      other costs                             342      353    1,109    1,117
       Comparable hotel expenses(e)           804      823    2,527    2,559

    Comparable Hotel Adjusted Operating
     Profit                                   223      256      695      834

     Non-comparable hotel results, net(f)      21        4       43       13
     Comparable hotels classified as held for sale(g)                              (2)      (3)      (7)      (9)
     Office building and limited service
      properties, net(h)                        -        3        1        4
     Other income                               -        -       12        -
     Depreciation and amortization           (114)    (113)    (367)    (358)
     Corporate and other expenses             (21)      (9)     (61)     (47)

    Operating Profit                         $107     $138     $316     $437

    (a) See the introductory 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 the comparable hotel adjusted operating profit divided by the comparable hotel sales per the schedule above.
    (d) The reconciliation of total revenues per the consolidated statements of operations to the comparable hotel sales is as follows (in millions):

                                            Quarter ended       Year ended
                                             December 31,      December 31,
                                            2003     2002     2003     2002

        Revenues per the consolidated
         statements of operations          $1,092   $1,128   $3,448   $3,516
        Revenues of hotels held for sale       13       14       42       44
        Non-comparable hotel sales            (80)     (70)    (221)    (172)
        Hotel sales for the property for
         which we record rental income, net    15       15       46       45
        Rental income for office buildings
         and limited service hotels           (24)     (26)     (75)     (77)
        Other income                            -        -      (12)       -
        Adjustment for hotel sales for
         comparable hotels to reflect
         Marriott's fiscal year for
         Marriott-managed hotels               11       18       (6)      37
        Comparable hotel sales             $1,027   $1,079   $3,222   $3,393
 

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

                                             Quarter ended       Year Ended
                                              December 31,      December 31,
                                             2003     2002     2003     2002
        Operating costs and expenses per
         the consolidated statements
         of operations                       $985     $990   $3,132   $3,079
        Operating costs of hotels held
         for sale                              11       11       35       35
        Non-comparable hotel expenses         (57)     (61)    (183)    (155)
        Hotel expenses for the property for which we record  rental income    14       13       50       48 Rent expense for office buildings and limited service hotels           (24)     (23)     (74)     (73)
        Adjustment for hotel expenses for
         comparable hotels to reflect
         Marriott's fiscal year for
         Marriott-managed hotels               10       15       (5)      30
         Depreciation and amortization       (114)    (113)    (367)    (358)
        Corporate and other expenses          (21)      (9)     (61)     (47)
        Comparable hotel expenses            $804     $823   $2,527   $2,559

    (f) 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, (ii) for full year 2003 and 2002 results, the difference between comparable hotel adjusted operating profit which reflects 364 and 371 days, respectively, of operations and the operating results included in the consolidated statements of operations which reflects 365 days and (iii) for fourth quarter of 2003 and 2002 results, the difference between 112 and 119 days, respectively, of operations versus 110 and 116 days, respectively, in the statements of operations.
    (g) Included in our comparable hotel results are five hotels that are classified as held for sale as of December 31, 2003 per the requirements of SFAS 144, "Accounting for the Impairment or Disposal of Long-Lived Assets."  Because the hotels are classified as held for sale, their operating results are not included in the revenues or operating costs and expenses from continuing operations, but are instead included in discontinued operations.  We continue to include them as comparable hotels, however, because the operating results for these properties were reported by us throughout the entire reporting periods being compared.
    (h) Represents rental income less rental expense for limited service properties and office buildings.  For detail, see footnote (b) to the statements of operations.
 
 

                          HOST MARRIOTT CORPORATION
                             Other Financial Data
                  (unaudited, in millions, except per share)

                                                          December 31
                                                     2003              2002
    Equity
     Common shares outstanding                       320.3             263.7
     Common shares and minority held
      common OP Units outstanding                    343.8             291.5
     Preferred OP Units outstanding                   0.02              0.02
     Class A Preferred shares outstanding              4.1               4.1
     Class B Preferred shares outstanding              4.0               4.0
     Class C Preferred shares outstanding              6.0               6.0
     Class D Preferred shares outstanding              0.3                 -

    Security pricing (per share price)
     Common(a)                                     $ 12.32           $  8.86
     Class A Preferred(a)                          $ 26.74           $ 26.15
     Class B Preferred(a)                          $ 27.00           $ 25.65
     Class C Preferred(a)                          $ 27.26           $ 25.70
     Convertible Preferred Securities(b)           $ 51.00           $ 36.94

    Dividends per share
     Common(c)                                     $     -           $     -
     Class A Preferred                             $  2.50           $  2.50
     Class B Preferred                             $  2.50           $  2.50
     Class C Preferred                             $  2.50           $  2.50
     Class D Preferred                             $  1.88           $     -

    Debt
     Percentage of fixed rate debt                     85%               90%
     Weighted average interest rate(d)                7.7%              7.9%
     Weighted average debt maturity(d)           5.5 years         5.5 years
     Credit facility, outstanding balance
      (capacity of $250 million)                   $     -           $     -
    Other Financial Data
     Construction in progress                      $    56           $    39
    (a) Share prices are the closing price on the balance sheet date, as reported by the New York Stock Exchange, for the common and preferred stock.
    (b) Market price as of December 31, 2003 as quoted by Bloomberg L.P.
    (c) We did not declare a common stock dividend during 2003 or 2002.
    (d) As a result of debt repayments of approximately $262 million during January 2004, our weighted average interest rate has been reduced to
                 7.4% and our weighted average maturity is 5.6 years.
 

                          HOST MARRIOTT CORPORATION
     Reconciliation of Net Income (Loss) Available to Common Shareholders
                  to Funds From Operations per Diluted Share (unaudited, in millions, except per share amounts)

                                      Quarter ended        Quarter ended
                                   December 31, 2003     December 31, 2002

                                                  Per                  Per
                                  Income         Share  Income        Share
                                  (Loss) Shares  Amount (Loss) Shares Amount
    Net income (loss) available to common shareholders           $142  310.7   $0.46  $(11)  263.6  $(0.04)
    Adjustments:
      Cumulative effect of change
       in accounting principle      (24)     -   (0.08)    -       -       -
      Gain on the disposition of
       the New York Marriott World
       Trade Center hotel           (56)     -   (0.18)    -       -       -
      Gains on dispositions, net     (9)     -   (0.03)    -       -       -
      Depreciation and amortization 114      -    0.37   115       -    0.43
      Partnership adjustments        21      -    0.07     2       -    0.01
      FFO of minority partners of
       Host LP(a)                   (14)     -   (0.05)  (10)      -   (0.03)
    Adjustments for dilutive
     securities:
      Assuming distribution of
       common shares granted under
       the comprehensive stock plan
       less shares assumed purchased
       at average market price        -    3.9   (0.01)    -     4.0   (0.01)
      Assuming conversion of
       Convertible Preferred
       Securities                    10   30.9   (0.02)   10    30.9       -

      Assuming conversion of
       minority OP Units issuable     -    2.0       -     -       -       -
    FFO per diluted share(b)(c)    $184  347.5   $0.53  $106   298.5   $0.36
 

                                      Year ended            Year ended
                                   December 31, 2003     December 31, 2002

                                                  Per                  Per
                                  Income         Share  Income        Share
                                  (Loss) Shares  Amount (Loss) Shares Amount
    Net income (loss) available to common shareholders        $(21) 281.0  $(0.07) $(51)  263.0  $(0.19)
    Adjustments:
      Gain on the disposition of
       the New York Marriott World
       Trade Center hotel           (56)     -   (0.20)    -       -       -
      Gain on dispositions, net      (9)     -   (0.04)  (13)      -   -0.05
      Depreciation and amortization 371      -    1.32   366       -    1.39
      Partnership adjustments        24      -    0.08    20       -    0.07
      FFO of minority partners of
       Host LP(a)                   (26)     -   (0.09)  (30)      -   -0.11
    Adjustments for dilutive
     securities:
    Assuming distribution of
     common shares granted under
     the comprehensive stock plan
     less shares assumed purchased
     at average market price          -    3.5   (0.01)    -     4.0   -0.02
    Assuming conversion of
     Convertible Preferred
     Securities                       -      -       -    32    30.9       -
    FFO per diluted share(b)(c)    $283  284.5   $0.99  $324   297.9   $1.09

    (a) Represents FFO attributable to the minority interest 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, those preferred OP Units held by minority partners, other minority interests that have the option to convert their limited partnership interest to common OP Units and the Convertible Preferred Securities.  No effect is shown for securities if they are anti-dilutive.
    (c) Quarterly and full year results were significantly affected by several
        transactions, the effect of which is shown in the table below:

                                     Quarter ended            Year ended
                                   December 31, 2003       December 31, 2003
                                 Net          Adjusted    Net         Adjusted
                               Income          EBITDA    Income        EBITDA
                               (Loss)    FFO             (Loss)   FFO
        World Trade Center
         insurance gain(1)      $212    $156    $ -       $212   $156    $ -
        Senior notes
         redemptions(2)          (33)    (33)     -        (35)   (35)     -
        Loss on foreign
         currency forward
         contracts(3)            (17)    (17)   (17)       (18)   (18)   (18)
        Directors' and
         officers' insurance
         settlement(4)             -       -      -          7      7     10
        Minority interest
        (expense) benefit(5)     (14)     (8)     -        (14)    (9)     -

        (1) As a result of the New York Marriott World Trade Center hotel insurance settlement in the fourth quarter of 2003, we recorded a gain of approximately $212 million, which is comprised of $156 million in post-2003 business interruption proceeds and $56 million from the disposition of the hotel.  See the previous discussion of non-GAAP financial measures, which describes why we exclude the $56 million gain from FFO per diluted share and Adjusted EBITDA. For these reasons, we have also excluded the $156 million gain on settlement for business interruption insurance proceeds for the periods subsequent to December 31, 2003 from Adjusted EBITDA. These business interruption proceeds, because they relate to future periods for a hotel that, even if rebuilt would be in a different location and would be significantly different from the prior hotel, are not consistent with reflecting the ongoing performance of our remaining assets.
        (2) In conjunction with the redemption of $711 million of our senior notes in the fourth quarter of 2003, we incurred a total of approximately $28 million of expense related to the call premiums paid and the acceleration of related deferred financing fees. We also incurred approximately $5 million of incremental interest expense during the redemption call period.  In addition, we incurred approximately $2.3 million of call premiums and accelerated deferred financing fees related to a $71 million senior notes redemption in the third quarter of 2003.
        (3) In the fourth quarter of 2003, we made a partial repayment of the Canadian mortgage debt, which resulted in the related forward currency contracts hedge being deemed ineffective for accounting purposes. Accordingly, the company recorded an approximate $17 million decrease in net income, FFO and Adjusted EBITDA in the fourth quarter in addition to the approximate $1 million recorded in the first three quarters of 2003.
        (4) Represents approximately $9.6 million of other income in the third quarter of 2003 from the settlement of a claim that we brought against our directors' and officers' insurance carriers for reimbursement of defense costs and settlement payments incurred in resolving a series of related actions brought against us and Marriott International that arose from the sale of certain limited partnership units to investors prior to 1993. The settlement amount, net of taxes of approximately $2.4 million, totaled $7.2 million.
        (5) Represents the portion of the above listed amounts attributable to the minority partners in Host LP.
 

                          HOST MARRIOTT CORPORATION
      Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
                           (unaudited, in millions)
                                             Quarter ended       Year ended
                                              December 31,      December 31,
                                             2003     2002     2003     2002

    Net income (loss)(a)                     $150      $(3)     $14     $(16)
     Interest expense                         167      146      491      462
     Dividends on Convertible Preferred
      Securities                               10       10       32       32
     Depreciation and amortization            114      113      367      358
     Income taxes                              (3)      (3)     (12)       4
     Discontinued operations(b)                 5        8       16       20
    EBITDA(c)                                 443      271      908      860
     Gains and losses on dispositions and related debt extinguishments            (11)      (2)     (13)     (18)
     Gain on settlement of the New York
      Marriott World Trade Center hotel
      for post-2003 business interruption
      insurance(a)                           (156)       -     (156)       -
     Gain on the disposition of the New
      York Marriott World Trade Center
      hotel(a)                                (56)       -      (56)       -
     Impairment of assets held for sale         2        -        2        -
     Consolidated partnership adjustments:
     Minority interest (income) expense        16       (1)       5        7
     Distributions to minority interest
      partners of Host LP and other
      minority partners                        (1)      (4)      (6)     (13)
     Equity investment adjustments:
       Equity in losses of affiliates           9        3       22        9
       Distributions received from equity
        investments                             -        3        3        6
     Cumulative effect of a change in
      accounting principle(d)                 (24)       -        -        -
    Adjusted EBITDA(a)(c)                    $222     $270     $709     $851

    (a) Our results for the fourth quarter and full-year 2003 were
        significantly affected by several items. For a discussion of these items, see footnote (c) to the table reconciling net income available to common shareholders to FFO per diluted share included in this release.
    (b) Reflects the interest expense, depreciation and amortization and
        income taxes included in discontinued operations.
    (c) See the introductory notes to the financial information for discussion
        of non-GAAP measures.
    (d) For detail, see footnote (d) to the statements of operations.
 

                          HOST MARRIOTT CORPORATION
     Reconciliation of Net Loss Available to Common Shareholders to Funds From Operations per Diluted Share for Full Year 2004 Forecasts (a)
              (unaudited, in millions, except per share amounts)
                                                Low-end of Range
                                             Full Year 2004 Forecast
                                                                 Per Share
                                    Income (Loss)    Shares        Amount
    Forecast net loss available to common shareholders            $ (112)       322.1       $  (.35)
    Adjustments:
      Depreciation and amortization       360           -           1.12
      Gain on dispositions, net           (58)          -           (.18)
      Partnership adjustments              20           -            .06
      FFO of minority partners of Host LP(b)                      (17)          -           (.05)
    Adjustment for
     dilutive securities:(c)

      Assuming distribution
       of common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price                -           2.9          (.01)
    FFO per diluted share(a)(d)        $  193        325.0       $   .59
 

                                               High-end of Range
                                            Full Year 2004 Forecast
                                                                 Per Share
                                    Income (Loss)    Shares        Amount
    Forecast net loss available to common shareholders            $  (98)       322.1       $  (.30)
    Adjustments:
      Depreciation and amortization       360           -           1.12
      Gain on dispositions, net           (58)          -           (.18)
      Partnership adjustments              21           -            .07
      FFO of minority partners of Host LP(b)                      (18)          -           (.06)
    Adjustment for
     dilutive securities:(c)

      Assuming distribution
       of common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price                -           2.9          (.01)
    FFO per diluted share(a)(d)        $  207        325.0       $   .64

    See the notes following the table reconciling net loss to EBITDA and Adjusted EBITDA for full year 2004 forecasts.
 

                          HOST MARRIOTT CORPORATION
     Reconciliation of Net Loss Available to Common Shareholders to Funds From Operations per Diluted Share for First Quarter 2004 Forecasts (a)
              (unaudited, in millions, except per share amounts)
                                                Low-end of Range
                                          First Quarter 2004 Forecast
                                                                 Per Share
                                    Income (Loss)    Shares        Amount
    Forecast net loss available to common shareholders            $  (43)       320.3       $  (.14)
    Adjustments:
      Depreciation and amortization        83          -             .26
      Partnership adjustments              (5)         -            (.01)
      FFO of minority partners of Host LP(b)                       (3)         -            (.01)
    Adjustment for
     dilutive securities:(c)

      Assuming distribution of
       common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price                 -          2.5             -
    FFO per diluted share(a)(d)        $   32        322.8       $   .10
 

                                                High-end of Range
                                          First Quarter 2004 Forecast
                                                                 Per Share
                                    Income (Loss)    Shares        Amount
    Forecast net loss available to common shareholders            $  (37)        320.3      $  (.12)
    Adjustments:
      Depreciation and amortization        83           -            .26
      Partnership adjustments              (4)          -           (.01)
      FFO of minority partners of Host LP(b)                       (3)          -           (.01)
    Adjustment for
     dilutive securities:(c)

      Assuming distribution
       of common shares granted
       under the comprehensive
       stock plan less shares
       assumed purchased at
       average market price                -            2.5            -
    FFO per diluted share(a)(d)         $   39         322.8       $   .12
 

    See the notes following the table reconciling net loss to EBITDA and Adjusted EBITDA for full year 2004 forecasts.
 

                          HOST MARRIOTT CORPORATION
           Reconciliation of Net Loss to EBITDA and Adjusted EBITDA for Full Year 2004 Forecasts (unaudited, in millions)
                                                           Full Year 2004
                                                       Low-end        High-end
                                                       of Range       of Range

    Net Loss                                           $  (77)        $  (63)
      Interest expense                                    433            433
      Dividends on Convertible
       Preferred Securities                                32             32
      Depreciation and amortization                       361            361
      Income taxes                                        (10)            (9)
    EBITDA                                                739            754
      Gains (losses) on dispositions                      (62)           (62)
      Consolidated partnership adjustments:
        Minority interest (income) expense                  5              5 Distributions to minority interest partners of Host LP and other minority partners            (6)            (6)
      Equity investment adjustments:
        Equity in (earnings) losses
         of affiliates                                     22             22
        Distributions received from
         equity investments                                 2              2
    Adjusted EBITDA                                    $  700          $ 715

    (a) The amounts shown in these reconciliations are based on management's
        estimate of operations for 2004. 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 conditions, competition and governmental actions will affect future transactions, results, performance and achievements. Although we believe the expectations reflected 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 preparing the full year and first quarter 2004 forecasts, we have made the following assumptions:
        *  RevPAR will increase between 3% and 4% for the full year and increase between 0% and 2% for the first quarter for the low and high ends of the forecasted ranges, respectively.
        *  Comparable hotel adjusted operating profit margins will decrease 15 basis points and increase 15 basis points for the full year and will decrease 130 basis points and 70 basis points for the first quarter for the low and high ends of the forecasted ranges, respectively.
        *  $450 million of hotels will be sold during 2004.
        *  $400 million of acquisitions will be made during 2004.
        *  $700 million of debt will be redeemed or repaid for the full year ($262 million of which will be redeemed or repaid in the first quarter) and charges totaling $29 million in call premiums and accelerated deferred financing fees associated with the debt will be incurred in the full year and $11 million in the first quarter.
        *  Fully diluted shares will be 325.0 million and 322.5 million for the full year and first quarter, respectively.

    (b) Represents FFO attributable to the minority interests in Host LP.
    (c) These shares are dilutive for purposes of the FFO per diluted share
        calculation, yet are anti-dilutive for the purposes of the earnings per share calculation. This is due to the net loss that is forecasted for 2004 compared to net earnings for FFO for the year.
    (d) 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, those preferred OP Units held by minority partners, other minority interests that have the option to convert their limited partnership interest to common OP Units and the Convertible Preferred Securities.  No effect is shown for securities if they are anti-dilutive.