Anticipates the Sale of Approximately $500 million
of Assets in 2004
|BETHESDA, Md., Feb. 5, 2004 - Host Marriott
Corporation (NYSE: HMT) today announced that it has sold three hotels and
signed an agreement to sell two additional hotels for total proceeds of
$70 million to a joint venture comprised of HEI Hospitality, Greenfield
Partners, LLC and GIC Real Estate.
The three hotels sold were the Atlanta Marriott Northwest, the Detroit
Airport Marriott, and the Detroit Marriott Southfield hotels. The closing
of the sale of the two remaining hotels, the Atlanta Marriott Norcross
and the Fullerton Marriott at California State University, is expected
to occur in mid March and is subject to customary closing conditions.
Christopher J. Nassetta, president and chief executive officer, stated, "We believe selling non-core assets in this environment is the right long-term strategic decision for the company. The sale of these non-core assets will enhance the overall quality of our portfolio and our long-term earnings growth rate."
The Company has finalized the review of individual property budgets for 2004 and continues to believe that its prior RevPAR and margin guidance are still appropriate. RevPAR is expected to increase approximately 3% to 4% from 2003 and margins will be generally flat. The Company will provide initial 2004 earnings guidance on its fourth quarter earnings call scheduled to take place on February 24, 2004.
Host Marriott is a Fortune 500 lodging real estate company, which owns 113 upscale and luxury full-service hotel properties primarily operated under Marriott, Ritz-Carlton, Four Seasons, Hyatt, Westin and Hilton brand names.
This press release contains forward-looking statements within the meaning of federal securities regulations.
Host Marriott Corporation
|Also See:||Host Marriott Corporation Doubles 3rd Quarter Loss to $97 million, Compared to Loss of $47 million Last Year; Likely Will Not Pay a 4th Qtr Dividend / Hotel Operational Data / October 2003|