Hotel Online  Special Report

Host Marriott Corporation Sales Six Marriott Hotels; 
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. 

In addition, the Company announced the sale of the Mexico City Airport Marriott hotel for total proceeds of $30 million. The proceeds from these sales are expected to be used to repay debt or for other corporate purposes.

The Company intends to increase its sales efforts for its non-core assets as a result of strong demand in the market. The Company now forecasts the 

Marriott Aeropuerto Mexico City
sale of a total of approximately $500 million of assets in 2004 (including the transactions announced today) with the majority of dispositions occurring in the first half of the year. Sales proceeds will be used to pay down debt, invest in the Company's existing portfolio and/or acquisitions. To the extent the proceeds are employed to repay debt, the Company expects to incur certain one-time adjustments, consisting of call premiums and accelerated deferred financing costs (in addition to the amounts discussed in our December 30, 2003 press release).

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

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