LIABILITIES AND STOCKHOLDERS' EQUITY
    Debt
      Senior notes, including $491 million,
       net of discount, of Exchangeable
       Senior Debentures as of
       September 10, 2004                           $2,893            $3,180
      Mortgage debt                                  2,080             2,205
      Convertible Subordinated Debentures (b)          492                 -
      Other                                             99               101
        Total debt                                   5,564             5,486
    Accounts payable and accrued expenses              134               108
    Liabilities associated with assets
     held for sale                                       -                 2
    Other                                              140               166
        Total liabilities                            5,838             5,762

    Interest of minority partners of Host
     Marriott L.P.                                     125               130
    Interest of minority partners of
     other consolidated partnerships                    87                89
    Company-obligated mandatorily
     redeemable convertible preferred
     securities of a subsidiary whose
     sole assets are convertible
     subordinated debentures due 2026
     ("Convertible Preferred Securities") (b)            -               475

    Stockholders' equity
      Cumulative redeemable preferred stock
       (liquidation preference $350 million
       and $354 million, respectively), 50
       million shares authorized; 14.0
       million shares and 14.1 million
       shares issued and outstanding,
       respectively (c)                                337               339
      Common stock, par value $.01, 750
       million shares authorized; 348.3
       million shares and 320.3 million
       shares issued and outstanding,
       respectively                                      3                 3
      Additional paid-in capital                     2,928             2,617
      Accumulated other comprehensive income            28                28
      Deficit                                         (962)             (851)
        Total stockholders' equity                   2,334             2,136
        Total liabilities and stockholders' equity  $8,384            $8,592

    (a) Our consolidated balance sheet as of September 10, 2004 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 our Annual Report on Form 10-K and as amended from
        time to time in other filings with the SEC.
    (b) We adopted Financial Interpretation No. 46 "Consolidation of Variable
        Interest Entities" (FIN 46) in 2003. Under FIN 46, our limited purpose
        trust subsidiary that was formed to issue trust-preferred securities
        (the Convertible Preferred Securities Trust) was accounted for on a
        consolidated basis as of December 31, 2003 since we were the primary
        beneficiary under FIN 46.

In December 2003, the FASB issued a revision to FIN 46, which we refer to as FIN 46R. Under FIN 46R, we are not the primary beneficiary and we are required to deconsolidate the accounts of the Convertible Preferred Securities Trust. We adopted the provisions of FIN 46R on January 1, 2004. As a result, we recorded the $492 million in debentures (the Convertible Subordinated Debentures) issued by the Convertible Preferred Securities Trust and eliminated the $475 million of Convertible Preferred Securities that were previously classified in the mezzanine section of our consolidated balance sheet prior to January 1, 2004. The difference of $17 million is our investment in the Convertible Preferred Securities Trust, which is included in "Investments in affiliates" on our consolidated balance sheet.  Additionally, we classified the related dividend payment of approximately $7 million and $22 million for the third quarter and year-to-date 2004, respectively, as interest expense. We adopted FIN 46R prospectively and, therefore, did not restate prior periods.  The adoption of FIN 46R had no effect on our net loss, loss per diluted share or the financial covenants under our senior notes indentures.
    (c) On August 3, 2004, we redeemed all 4.16 million shares of the
        outstanding 10% Class A cumulative redeemable preferred stock ("Class
        A preferred stock") at a redemption price of $25.00 per share plus
        dividends accrued to that date.
 
 

                          HOST MARRIOTT CORPORATION
                  Consolidated Statements of Operations (a)
              (unaudited, in millions, except per share amounts)
                                          Quarter ended    Year-to-date ended
                                       Sept. 10, Sept. 12, Sept. 10, Sept. 12,
                                           2004      2003      2004      2003
    Revenues
     Rooms                                   $506    $441    $1,519    $1,371
     Food and beverage                        226     209       780       716
     Other                                     57      47       167       154
      Total hotel sales                       789     697     2,466     2,241
     Rental income (b)                         21      20        74        71
     Other income                              -       10        -         12
      Total revenues                          810     727     2,540     2,324

    Expenses
     Rooms                                    132     119       381       345
     Food and beverage                        190     173       594       544
     Hotel departmental expenses              237     214       693       635
     Management fees                           30      27       101        94
     Other property-level expenses (b)         71      70       211       215
     Depreciation and amortization             85      82       250       247
     Corporate expenses                        18      14        43        39
      Total expenses                          763     699     2,273     2,119

    Operating profit                           47      28       267       205
    Interest income                             3       2         8         7
    Interest expense, including interest
     expense for the Convertible
     Subordinated Debentures in 2004 (c)     (109)   (108)     (357)     (324)
    Net gains on property transactions          5       1        10         4
    Loss on foreign currency and
     derivative contracts                      (2)     -         (2)       (2)
    Minority interest income                    4       9         2        11
    Equity in losses of affiliates             (4)     (4)      (12)      (13)
    Dividends on Convertible Preferred
     Securities (c)                            -       (7)       -        (22)
 
 

    Loss before income taxes                  (56)    (79)      (84)     (134)
    Benefit for income taxes                   10      12         2        10

    Loss from continuing operations           (46)    (67)      (82)     (124)
    Income (loss) from discontinued
     operations (d)                            (1)      3        21        12

    Loss before cumulative effect of a
     change in accounting principle           (47)    (64)      (61)     (112)
    Cumulative effect of adoption of SFAS
     No. 150 (e)                               -      (24)       -        (24)

    Net loss                                  (47)    (88)      (61)     (136)
    Less:  Dividends on preferred stock        (9)     (9)      (28)      (27)
     Issuance costs of redeemed Class A
      preferred stock (f)                      (4)     -         (4)       -

    Net loss available to common
     stockholders                            $(60)   $(97)     $(93)    $(163)

    Basic and diluted loss per common
     share (g)                             $(0.17) $(0.35)   $(0.28)   $(0.61)

    (a) Our consolidated statements of operations presented above 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 and as amended from time to time in other filings with the SEC.
    (b) Rental income and expense are as follows:
                                           Quarter ended    Year-to-date ended
                                       Sept. 10, Sept. 12, Sept. 10, Sept. 12,
                                           2004      2003      2004      2003

    Rental income                             $3       $3      $21      $20
     Full-service                             18       17       53       51
     Limited service and office buildings    $21      $20      $74      $71

    Rental and other expenses (included
     in other property-level expenses)        $2       $2       $5       $5
     Full-service                             18       17       54       50
     Limited service and office buildings    $20      $19      $59      $55
 

    (c) See discussion of FIN 46R in footnote (b) to the consolidated balance
        sheet. Interest expense also includes approximately $14 million and
        $59 million for the third quarter and year-to-date 2004, respectively,
        and $2 million for both the third quarter and year-to-date 2003,
        respectively, for the payment of call premiums and the acceleration of
        deferred financing costs on debt redemptions and repayments.
    (d) Reflects the results of operations and gain (loss) on sale, net of the
        related income tax, for seven properties sold in 2004 and eight
        properties sold in 2003.
    (e) We adopted SFAS No. 150 "Accounting for Certain Financial Instruments
        with Characteristics of both Liabilities and Equity" on June 21, 2003
        and recorded a loss of $24 million as a cumulative effect of change in
        accounting principle in the third quarter of 2003. Subsequently, on
        November 7, 2003, the Financial Accounting Standards Board (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 the FSP 150-3, we recorded a gain from a cumulative
        effect of a change in accounting principle of $24 million in the
        fourth quarter of 2003, reversing the impact of our adoption of SFAS
        150 with respect to consolidated ventures with finite lives.
    (f) On July 31, 2003, the SEC issued a clarification of Emerging Issues
        Task Force Topic D-42, "The Effect on the Calculation of Earnings per
        Share for the Redemption or Induced Conversion of Preferred Stock."
        Topic D-42 provides, among other things, that any excess of the fair
        value of the consideration transferred to the holders of preferred
        stock redeemed over the carrying amount of the preferred stock should
        be subtracted from net earnings to determine net earnings available to
        common stockholders in the calculation of earnings per share.  The
        SEC's clarification of the guidance in Topic D-42 provides that the
        carrying amount of the preferred stock should be reduced by the
        related original issuance costs.
        For example, the carrying amount of the Class A preferred stock was approximately $100 million, which was net of $4 million of our original issuance costs. On August 3, 2004, the fair value paid, or $104 million (which was equal to the redemption price and par value) exceeded the carrying value of the preferred stock by approximately $4 million, which represents the original issuance costs.  Accordingly, this amount has been included in the determination of net loss available to common stockholders for the purpose of calculating our basic and diluted loss per share.
    (g) On September 30, 2004, the Emerging Issues Task Force, or EITF,
        confirmed their tentative conclusion on EITF Issue No. 04-8, "The
        Effect of Contingently Convertible Debt on Diluted Earnings per
        Share." The EITF has requested that the FASB ratify their conclusion.
        EITF 04-8 requires contingently convertible debt instruments to be
        included in diluted earnings per share, if dilutive, regardless of
        whether a market price contingency for the conversion of the debt into
        common shares or any other contingent factor has been met.  Prior to
        this consensus, such instruments were excluded from the calculation
        until one or more of the contingencies were met.  EITF 04-8 may be
        effective for reporting periods ending after December 15, 2004, and
        would likely require restatement of prior period earnings per share
        amounts.
        Should the FASB make EITF 04-8 effective, we would include the common shares that are convertible from our Exchangeable Senior Debentures issued in March of this year, if dilutive, in our earnings (loss) per share.  As of the third quarter, the Exchangeable Senior Debentures would be anti-dilutive for both the quarter and year-to-date ended September 10, 2004 for loss per share.  However, there are no assurances that EITF 04-8 will become effective and, if it does become effective, the final consensus may differ from what is detailed above.
 

                          HOST MARRIOTT CORPORATION
                            Loss per Common Share
              (unaudited, in millions, except per share amounts)
                              Quarter ended             Quarter ended
                           September 10, 2004         September 12, 2003

                                                   Income
                     Income                 Per    (loss)                Per
                     (loss)      Shares     Share  (Numer-)  Shares      Share
                  (Numerator) (Denominator) Amount (ator) (Denominator) Amount
    Net loss           $(47)       348.7    $(0.13)  $(88)    275.6    $(0.32)
     Dividends on
      preferred
      stock              (9)           -     (0.03)    (9)        -     (0.03)
     Issuance costs
      of redeemed
      Class A
      preferred
      stock (a)          (4)           -     (0.01)     -          -        -
    Basic and diluted
     loss available
     to common
     stockholders
     per share (b)(c)  $(60)       348.7    $(0.17)  $(97)     275.6   $(0.35)
 
 

                          Year-to-date ended           Year-to-date ended
                          September 10, 2004           September 12, 2003
                                                   Income
                     Income                 Per    (loss)                Per
                     (loss)      Shares     Share  (Numer-)  Shares      Share
                  (Numerator) (Denominator) Amount (ator) (Denominator) Amount
    Net loss           $(61)      331.5    $(0.18)  $(136)     268.1   $(0.51)
     Dividends on
      preferred
      stock             (28)          -     (0.09)    (27)         -    (0.10)
     Issuance costs
      of redeemed
      Class A
      preferred
      stock (a)          (4)          -     (0.01)      -          -        -
    Basic and diluted
     loss available
     to common
     stockholders
     per share (b)(c)  $(93)      331.5    $(0.28)  $(163)     268.1   $(0.61)
 

    (a) For discussion on accounting treatment, see footnote (f) to the
        consolidated statement of operations.
    (b) Basic loss per common share is computed by dividing net loss available
        to common stockholders by the weighted average number of shares of
        common stock outstanding. Diluted loss per common share is computed by
        dividing net loss available to common stockholders 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 Subordinated Debentures. No effect is shown for any
        securities that are anti-dilutive. EITF 04-08 may become effective in
        the fourth quarter and, as a result, the Exchangeable Senior
        Debentures would be included as a potentially dilutive security.  For
        details, see footnote (g) to the consolidated statement of operations.
    (c) Our results for the periods presented were significantly affected by
        several items. For details, see footnote (d) to the table reconciling
        net loss available to common stockholders to FFO per diluted share
        included in this press release.
 
 

HOST MARRIOTT CORPORATION
                       Comparable Hotel Operating Data
                       Comparable Hotels by Region (a)
                                 (unaudited)
                              As of
                       September 10, 2004    Quarter ended September 10, 2004

                                                          Average
                        No. of     No. of    Average     Occupancy
                      Properties   Rooms    Daily Rate  Percentages   RevPAR

    Pacific              20        10,720    $141.16       78.0%     $110.08
    Florida              12         7,337     132.70       67.3        89.32
    Mid-Atlantic         10         6,720     175.44       81.3       142.56
    Atlanta              13         5,940     138.42       67.8        93.80
    North Central        13         4,923     122.41       73.9        90.47
    South Central         7         4,816     112.27       73.2        82.13
    DC Metro             11         4,297     146.10       73.0       106.67
    New England           7         3,413     147.31       79.8       117.55
    Mountain              7         2,861      93.43       65.3        61.02
    International         5         1,953     122.97       73.4        90.28
      All Regions       105        52,980     138.12       73.8       101.92
 

                               Quarter ended September 12, 2003

                                             Average               Percent
                               Average      Occupancy             Change in
                              Daily Rate   Percentages   RevPAR    RevPAR

    Pacific                    $138.79        73.6%     $102.12      7.8%
    Florida                    124.48         64.8        80.67     10.7
    Mid-Atlantic               164.24         75.0       123.19     15.7
    Atlanta                    128.82         68.4        88.15      6.4
    North Central              124.06         74.1        91.96     (1.6)
    South Central              114.90         74.4        85.52     (4.0)
    DC Metro                   142.72         73.1       104.33      2.2
    New England                135.95         72.3        98.27     19.6
    Mountain                    91.50         65.8        60.25      1.3
    International              119.90         65.2        78.18     15.5
      All Regions              132.68         71.2        94.49      7.9
 

                              As of                 Year-to-date ended
                       September 10, 2004           September 10, 2004

                                                          Average
                        No. of     No. of    Average     Occupancy
                      Properties   Rooms    Daily Rate  Percentages   RevPAR

    Pacific               20       10,720    $148.72       75.3%     $111.95
    Florida               12        7,337     164.82       73.6       121.37
    Mid-Atlantic          10        6,720     178.16       77.6       138.28
    Atlanta               13        5,940     141.13       68.9        97.22
    North Central         13        4,923     119.33       68.6        81.82
    South Central          7        4,816     129.73       77.0        99.83
    DC Metro              11        4,297     151.13       73.6       111.21
    New England            7        3,413     141.61       73.4       103.96
    Mountain               7        2,861     103.31       63.4        65.46
    International          5        1,953     120.72       72.8        87.83
      All Regions        105       52,980     146.27       73.1       107.00
 

                           Year-to-date ended September 12, 2003

                                             Average               Percent
                               Average      Occupancy             Change in
                              Daily Rate   Percentages   RevPAR    RevPAR

    Pacific                    $149.84        68.9%     $103.26      8.4%
    Florida                     161.78        70.9       114.78      5.7
    Mid-Atlantic                171.69        73.4       125.96      9.8
    Atlanta                     136.50        66.9        91.31      6.5
    North Central               121.38        67.4        81.78        -
    South Central               131.40        76.9       100.99     (1.2)
    DC Metro                    144.21        71.9       103.73      7.2
    New England                 139.13        67.7        94.19     10.4
    Mountain                    100.62        64.5        64.86      0.9
    International               113.48        63.2        71.73     22.5
      All Regions               143.71        69.8       100.35      6.6
 

Comparable Hotel Operating Statistics
We present certain operating statistics (i.e., RevPAR, average daily rate and average occupancy) and operating results (revenues, expenses and adjusted operating profit) for the periods included in this report on a comparable hotel basis. We define our comparable hotels as full-service properties (i) that are owned or leased by us and the operations of which are included in our consolidated results, whether as continuing operations or discontinued operations, for the entirety of the reporting periods being compared, and (ii) that have not sustained substantial property damage or undergone large-scale capital projects during the reporting periods being compared. Of the 112 full-service hotels that we owned as of September 10, 2004, 105 have been classified as comparable hotels. The operating results of the following seven hotels that we owned as of September 10, 2004 are excluded from comparable hotel results for these periods:
    * the JW Marriott, Washington, D.C. (consolidated in our financial statements beginning in the second quarter of 2003);
    * the Hyatt Regency Maui Resort and Spa (acquired in November 2003);
    * the Memphis Marriott (construction of a 200-room expansion started in 2003 and completed in 2004);
    * the Embassy Suites Chicago Downtown-Lakefront Hotel (acquired in April 2004);
    * the Fairmont Kea Lani Maui (acquired in July 2004);
    * the Newport Beach Marriott Hotel (major renovation started in July
      2004); and
    * Mountain Shadows Resort Hotel (closed in September 2004).
 
 

In addition, the operating results of the 15 hotels we disposed of in 2004 and 2003 are also not included in comparable hotel results for the periods presented herein. Moreover, because these statistics and operating results are for our full-service hotel properties, they exclude results for our non- hotel properties and leased limited-service hotels.
 

                          HOST MARRIOTT CORPORATION
                       Comparable Hotel Operating Data
                   Schedule of Comparable Hotel Results (a)
              (unaudited, in millions, except hotel statistics)
                              Quarter ended            Year-to-date ended
                       September 10, September 12, September 10, September 12,
                           2004          2003          2004          2003

    Number of hotels        105           105           105           105
    Number of rooms      52,980        52,980        52,980        52,980
    Percent change in
     comparable hotel
     RevPAR                7.9%                        6.6%
    Operating profit
     margin under
     GAAP (b)              5.8%          3.9%         10.5%          8.8%
    Comparable hotel
     adjusted operating
     profit margin (c)    17.5%         16.2%         21.7%         21.2%

    Comparable hotel
     sales
       Room                $463          $429        $1,422        $1,334
       Food and beverage    211           206           739           700
       Other                 48            48           155           154
         Comparable hotel
          sales (d)         722           683         2,316         2,188

    Comparable hotel
     expenses
       Room                 123           117           360           335
       Food and beverage    178           169           560           529
       Other                 33            31            98            94
       Management fees,
        ground rent and
        other costs         262           255           795           765
          Comparable hotel
           expenses (e)     596           572         1,813         1,723

    Comparable Hotel
     Adjusted Operating
     Profit                 126           111           503           465
       Non-comparable
        hotel results,
        net (f)              24             3            58            13
       Office building
        and limited service
        properties, net (g)   -             -            (1)            1
       Other income           -            10             -            12
       Depreciation and
        amortization        (85)          (82)         (250)         (247)
       Corporate expenses   (18)          (14)          (43)          (39)

    Operating Profit        $47           $28          $267          $205

    (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-to-date ended
                       September 10, September 12, September 10, September 12,
                           2004          2003          2004          2003
    Revenues per the
     consolidated
     statements of
     operations            $810          $727        $2,540        $2,324
    Non-comparable
     hotel sales            (78)          (26)         (191)          (87)
    Hotel sales for the
     property for which
     we record rental
     income, net              8             9            31            31
    Rental income for
     office buildings
     and limited service
     hotels                 (18)          (17)          (53)          (51)
    Other income              -           (10)            -           (12)
    Adjustment for hotel
     sales for comparable
     hotels to reflect
     Marriott's fiscal
     year for Marriott-
     managed hotels           -             -           (11)          (17)
       Comparable
        hotel sales        $722          $683        $2,316        $2,188

    (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-to-date ended
                       September 10, September 12, September 10, September 12,
                           2004          2003          2004          2003
    Operating costs
     and expenses per
     the consolidated
     statements of
     operations            $763          $699        $2,273        $2,119
    Non-comparable
     hotel expenses         (54)          (24)         (135)          (81)
    Hotel expenses for
     the property for
     which we record
     rental income            8            10            32            36
    Rent expense for
     office buildings
     and limited service
     hotels                 (18)          (17)          (54)          (50)
    Adjustment for hotel
     expenses for
     comparable hotels
     to reflect Marriott's
     fiscal year for
     Marriott-managed
     hotels                   -             -           (10)          (15)
    Depreciation and
     amortization           (85)          (82)         (250)         (247)
    Corporate expenses      (18)          (14)          (43)          (39)
      Comparable hotel
       expenses            $596          $572        $1,813        $1,723

    (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 statements of operations
        as continuing operations and (ii) the difference between comparable
        hotel adjusted operating profit, which reflects 252 days of
        operations, and the operating results included in the consolidated
        statements of operations, which reflects 254 days and 255 days for
        year-to-date 2004 and 2003, respectively.
    (g) Represents rental income less rental expense for limited service
        properties and office buildings.  For details, see footnote (b) to the
        consolidated statement of operations.
 
 

                          HOST MARRIOTT CORPORATION
                      Other Financial and Operating Data
              (unaudited, in millions, except per share amounts)
                                                September 10,    December 31,
                                                    2004            2003
    Equity
      Common shares outstanding                      348.3             320.3
      Common shares and minority held
       common OP Units outstanding                   370.5             343.8
      Preferred OP Units outstanding                   .02               .02
      Class A preferred shares outstanding (a)           -               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             .03               .03
      Class E preferred shares outstanding             4.0                 -

    Security pricing
      Common (b)                                $    13.75        $    12.32
      Class A preferred (a)                     $        -        $    26.74
      Class B preferred (b)                     $    26.33        $    27.00
      Class C preferred (b)                     $    27.75        $    27.26
      Class E preferred (b)                     $    27.00        $        -
      Convertible Preferred Securities (c)      $    52.31        $    51.00
      Exchangeable Senior Debentures (d)        $ 1,031.30        $        -

    Dividends per share
      Common (e)                                $     0.05        $        -
      Class A preferred (a)                     $     1.38        $     2.50
      Class B preferred (e)                     $     1.88        $     2.50
      Class C preferred (e)                     $     1.88        $     2.50
      Class D preferred (e)                     $     1.88        $     1.88
      Class E preferred (e)                     $      .82        $        -

    Other Financial Data
      Construction in progress                  $       53        $       56
 

                                    Quarter ended        Year-to-date ended

                                September   September   September   September
                                 10, 2004    12, 2003    10, 2004    12, 2003

    Hotel Operating Statistics
     for All Full-Service
     Properties (f)
      Average daily rate         $ 142.30    $ 130.43    $ 148.53    $ 140.23
      Average occupancy             74.0%       71.3%       73.3%       69.9%
      RevPAR                     $ 105.32    $  92.97    $ 108.90    $  98.07
 

    Debt
                                                   September 10,  December 31,
                                                       2004            2003
    Series B senior notes, with a rate of
     7 7/8% due August 2008                     $       304     $     1,196
    Series C senior notes, with a rate of
     8.45% due December 2008                              -             218
    Series E senior notes, with a rate of
     8 3/8% due February 2006                           300             300
    Series G senior notes, with a rate of
     9 1/4% due October 2007 (g)                        244             244
    Series I senior notes, with a rate of
     9 1/2% due January 2007 (h)                        471             484
    Series J senior notes, with a rate of
     7 1/8% due November 2013                             -             725
    Series K senior notes, with a rate of
     7 1/8% due November 2013                           725               -
    Series L senior notes, with a rate of
     7% due August 2012                                 345               -
    Exchangeable Senior Debentures, with a
     rate of 3.25% due April 2024                       491               -
    Senior notes, with an average rate of
     9 3/4%, maturing through 2012                       13              13
        Total senior notes                            2,893           3,180
    Mortgage Debt, with an average interest
     rate of 7.7% and 7.8% at September 10,
     2004 and December 31, 2003, respectively         2,080           2,205
    Credit Facility (i)                                   -               -
    Convertible Subordinated Debentures,
     with a rate of 6 3/4% due
     December 20, 2026 (j)                              492               -
    Other                                                99             101
        Total debt                              $     5,564     $     5,486

    Percentage of fixed rate debt                       85%             85%
    Weighted average interest rate (j)                 7.0%            7.7%
    Weighted average debt maturity (j)            6.9 years       5.5 years
 

    (a) On August 3, 2004, we redeemed all 4.16 million shares of the
        outstanding Class A preferred stock at a redemption price of $25.00
        per share plus dividends accrued to that date.
    (b) Share prices are the closing price on the consolidated balance sheet
        date, as reported by the New York Stock Exchange, for the common and
        preferred stock.
    (c) Market price as of September 10, 2004 as quoted by Bloomberg L.P.  We
        have reclassified these securities as debt on our consolidated balance
        sheet.  See footnote (b) to the consolidated balance sheet.
    (d) Market price as of September 10, 2004 as quoted by Bloomberg L.P.
        Quoted price reflects the price of a single $1,000 debenture, which is
        exchangeable for common stock upon the occurrence of certain events.
    (e) On September 8, 2004, we declared a regular cash dividend on our
        publicly-traded Class B, C and E Cumulative Redeemable Preferred Stock
        to be paid on October 15, 2004 and a cash dividend on our common stock
        to be paid on December 20, 2004.
    (f) The operating statistics reflect all consolidated properties as of
        September 10, 2004 and September 12, 2003, respectively.  The
        operating statistics also include the results of operations for seven
        hotels sold in 2004 and eight hotels sold in 2003 prior to their
        disposition.
    (g) Includes fair value adjustments for interest rate swap agreements of
        $2 million as of both September 10, 2004 and December 31, 2003.
    (h) Includes fair value adjustments for interest rate swap agreements of
        $21 million and $34 million as of September 10, 2004 and December 31,
        2003, respectively.
    (i) The Credit Facility was amended on September 10, 2004, which increased
        available capacity to $575 million.  Currently, there are no amounts
        outstanding.
    (j) Beginning in January 2004, we recorded the Convertible Subordinated
        Debentures as debt in accordance with a revision to FIN 46.  The
        Convertible Subordinated Debentures were previously classified in the
        mezzanine section of our consolidated balance sheet.  Excluding the
        Convertible Subordinated Debentures, our weighted average interest
        rate was 7.0% and our weighted average debt maturity was 5.4 years.
        For details, see footnote (b) to the consolidated balance sheet.
 

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

                                      Quarter ended        Quarter ended
                                    September 10, 2004    September 12, 2003

                                                   Per                   Per
                                   Income         Share  Income         Share
                                   (loss) Shares  Amount (loss) Shares  Amount
    Net loss available to common stockholders    $(60) 348.7   $(.17)  $(97) 275.6   $(.35)
    Adjustments:
      Gains on dispositions, net      (4)     -    (.01)     -      -       -
      Cumulative effect of change
       in accounting principle         -      -       -     24      -     .09
      Depreciation and amortization   85      -     .24     86      -     .31
      Partnership adjustments          1      -       -     (3)     -    (.01)
      FFO of minority partners of
       Host LP (a)                    (1)     -       -     (1)     -       -
    Adjustments for dilutive
     securities:
       Assuming distribution of
        common shares granted under
        the comprehensive stock plan
        less shares assumed purchased
        at average market price        -    2.0       -      -    2.9       -
    FFO per diluted share (b)(c)(d)  $21  350.7    $.06     $9  278.5    $.03
 
 

                                     Year-to-date ended   Year-to-date ended
                                     September 10, 2004   September 12, 2003

                                                   Per                   Per
                                   Income         Share  Income         Share
                                   (loss) Shares  Amount (loss) Shares  Amount
    Net loss available to common stockholders  $(93)  331.5 $(.28) $(163) 268.1   $(.61)
    Adjustments:
      Gains on dispositions, net      (28)     -   (.08)    (2)     -    (.01)
      Cumulative effect of change in
       accounting principle             -                   24      -     .09
      Depreciation and amortization   251      -    .75    259      -     .97
      Partnership adjustments          12      -    .04      3      -     .01
      FFO of minority partners of Host
       LP (a)                          (9)     -   (.03)   (12)     -    (.05)
    Adjustments for dilutive
     securities:
      Assuming distribution of
       common shares granted under
       the comprehensive stock plan
       less shares assumed purchased
       at average market price          -    2.1      -      -    2.5       -
    FFO per diluted share (b)(c)(d)  $133  333.6   $.40   $109  270.6    $.40

    (a) Represents FFO attributable to the minority interests 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 Subordinated Debentures of Host Marriott. No effect is
        shown for securities if they are anti-dilutive.
    (c) EITF 04-08 may become effective in the fourth quarter and, as a
        result, the Exchangeable Senior Debentures would be included as a
        potentially dilutive security. For the quarter and year-to-date 2004,
        the conversion to common shares of the Exchangeable Senior Debentures
        would be anti-dilutive. For details, see footnote (g) to the
        consolidated statement of operations.
    (d) Quarterly and year-to-date 2004 and 2003 results were significantly
        affected by several transactions, the effect of which is shown in the
        table below:
                                      Quarter ended          Quarter ended
                                   September 10, 2004      September 12, 2003

                                   Net                      Net
                                  Income        Adjusted  Income      Adjusted
                                  (Loss)   FFO   EBITDA   (Loss)  FFO  EBITDA

    Senior notes redemptions (1)  $(14)   $(14)    $-      $(2)   $(2)   $-
    Class A preferred stock
     redemption (2)                 (6)     (6)     -        -      -     -
    Directors' and officers'
     insurance settlement (3)        -       -      -        7      7    10
    Minority interest benefit (4)    1       1      -        -      -     -
      Total                       $(19)   $(19)    $-       $5     $5   $10
      Per diluted share          $(.05)  $(.05)           $.02   $.02
 

                                    Year-to-date ended    Year-to-date ended
                                    September 10, 2004    September 12, 2003

                                   Net                      Net
                                  Income        Adjusted  Income      Adjusted
                                  (Loss)   FFO   EBITDA   (Loss)  FFO  EBITDA

    Senior notes redemptions (1)  $(59)   $(59)    $-      $(2)   $(2)   $-
    Class A preferred stock
     redemption (2)                 (6)     (6)     -        -      -     -
    Directors' and officers'
     insurance settlement (3)        -       -      -        7      7    10
    Loss on foreign currency
     forward contracts (5)           -       -      -       (1)    (1)   (1)
    Minority interest benefit (4)    4       4      -        -      -     -
      Total                       $(61)   $(61)    $-       $4     $4    $9
      Per diluted share          $(.18)  $(.18)           $.01   $.01

    (1) Represents call premiums and the acceleration of original issue
        discounts and deferred financing costs, as well as incremental
        interest during the call period for refinancings, included in interest
        expense in the consolidated statements of operations.  We recognized
        these costs in conjunction with the prepayment or refinancing of
        senior notes and mortgages during the third quarter and year-to-date
        of 2004 and 2003.
    (2) Represents the original issuance costs for the Class A preferred
        stock, which was required to be included in the calculation of
        earnings (loss) per share in conjunction with the redemption of the
        Class A preferred stock in the third quarter of 2004, as well as the
        incremental dividends from the date of issuance of the Class E
        preferred stock to the date of redemption of the Class A preferred
        stock. For additional information, see footnote (f) to the
        consolidated statements of operations.
    (3) During the third quarter of 2003, we recognized approximately $9.6
        million of other income 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 effect on net income (loss) and
        FFO is approximately $7 million due to income taxes on the proceeds.
    (4) Represents the portion of the above listed amounts attributable to
        minority partners in Host LP.
    (5) During 2003, we made partial repayments of the Canadian mortgage debt,
        which resulted in the related forward currency contracts hedge being
        deemed partially ineffective for accounting purposes. Accordingly, we
        recorded an approximate $1 million charge to net income (loss) and
        FFO.
 

                          HOST MARRIOTT CORPORATION
           Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
                           (unaudited, in millions)
                                            Quarter ended   Year-to-date ended
                                       Sept. 10, Sept. 12, Sept. 10, Sept. 12,
                                           2004      2003      2004      2003

    Net loss                                 $(47)    $(88)    $(61)    $(136)
     Interest expense (a)                     109      108      357       324
     Dividends on Convertible Preferred
      Securities (a)                            -        7        -        22
     Depreciation and amortization             85       82      250       247
     Income taxes                             (10)     (12)      (2)      (10)
     Discontinued operations (b)                1        7        2        18
 

    EBITDA (c)                                138      104      546       465
     Gains and losses on dispositions and
      related debt extinguishments             (5)      (1)     (30)       (3)
     Consolidated partnership
      adjustments:
      Minority interest income                 (4)      (9)      (2)      (11)
      Distributions to minority interest
       partners of Host LP and other
       minority partners                       (1)       -       (5)       (4)
     Equity investment adjustments:
      Equity in losses of affiliates            4        4       12        13
      Distributions received from equity
      investments                               1        -        2         3
     Cumulative effect of change in
      accounting principle                      -       24        -        24
    Adjusted EBITDA (c) (d)                  $133     $122     $523      $487

    (a) Interest expense in the third quarter and year-to-date 2004 includes
        approximately $7 million and $22 million, respectively, previously
        classified as dividends on Convertible Preferred Securities. See
        footnote (b) to the consolidated balance sheet for further detail.
    (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) Our results for the periods presented were significantly affected by
        several items. For a discussion of these items, see footnote (d) to
        the table reconciling net loss available to common stockholders to FFO
        per diluted share included in this press release.
 

                          HOST MARRIOTT CORPORATION
        Reconciliation of Net Loss Available to Common Stockholders 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
                                               Income                Per Share
                                               (Loss)      Shares      Amount

    Forecast net loss available to common
     stockholders                              $(103)      337.1       $(0.31)
    Adjustments:
      Depreciation and amortization              362           -         1.07
      Gain on dispositions, net                  (34)          -        (0.10)
      Partnership adjustments                     18           -         0.05
      FFO of minority partners of Host LP(b)     (15)          -        (0.04)
    Adjustment for dilutive securities:(c)
      Assuming distribution of common
       shares granted under the
       comprehensive stock plan less shares
       assumed purchased at average market
       price                                       -         2.0            -
    FFO per diluted share (d)                   $228       339.1        $0.67
 
 

                                                      High-end of Range
                                                   Full Year 2004 Forecast
                                               Income                Per Share
                                               (Loss)      Shares      Amount

    Forecast net loss available to common
     stockholders                              $(88)      337.1       $(0.26)
    Adjustments:
      Depreciation and amortization             362           -         1.07
      Gain on dispositions, net                 (34)          -        (0.10)
      Partnership adjustments                    21           -         0.06
      FFO of minority partners of Host LP(b)    (16)          -        (0.05)
    Adjustment for dilutive securities:(c)
      Assuming distribution of common
       shares granted under the
       comprehensive stock plan less shares
       assumed purchased at average market
       price                                      -         2.0            -
    FFO per diluted share(d)                   $245       339.1        $0.72
 
 

# 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(a)
                           (unaudited, in millions)

                                                          Full Year 2004
                                                    Low-end           High-end
                                                    of Range          of Range

    Net loss                                          $(62)             $(47)
      Interest expense(e)                              493               493
      Depreciation and amortization                    362               362
      Income taxes                                     (12)               (8)
    EBITDA                                             781               800
      Gains on dispositions                            (34)              (34)
      Consolidated partnership adjustments:
        Minority interest (income) expense               -                 1
        Distributions to minority interest
         partners of Host LP and other
         minority partners                              (6)               (6)
      Equity investment adjustments:
         Equity in losses of affiliates                 19                19
         Distributions received from equity
          investments                                    5                 5
    Adjusted EBITDA                                   $765              $785
 
 

    (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 2004 forecasts, we have made the following assumptions:
        * RevPAR will increase between 6.0% and 7.0% for the full year for the low and high ends of the forecasted range, respectively.
        * Comparable hotel adjusted operating profit margins will increase 40 basis points and 80 basis points for the full year for the low and high ends of the forecasted range, respectively.
        * Approximately $250 million of hotels will be sold during 2004.
        * Approximately $530 million of acquisitions will be made during 2004.
        * Approximately $1,295 million of debt will be redeemed or repaid for the full year ($1,195 million of which was redeemed or repaid in the first three quarters).  Charges, net of the minority interest benefit, totaling approximately $65 million, or $.19 of FFO per diluted share, net of the minority interest benefit, for the full year in call premiums and the acceleration of deferred financing costs associated with the debt repayments and the redemption of the Class A preferred stock will be incurred.  The guidance also includes a decrease of $.01 to $.02 in FFO per diluted share for the full year for the effect of the hurricanes in Florida and Louisiana.
        * Fully diluted shares will be 339.1 million for the full year.
 

    (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 Subordinated Debentures.  No effect is shown
        for securities if they are anti-dilutive.  EITF 04-8 may become
        effective in the fourth quarter and, as a result, the Exchangeable
        Senior Debentures would be included as a potentially dilutive
        security.  If EITF 04-8 were to become effective, the conversion to
        common shares of the Exchangeable Senior Debentures will be dilutive
        and decrease FFO per diluted share by approximately $.02 for the full
        year forecast.  For details, see footnote (g) to the consolidated
        statement of operations.
    (e) Interest expense in 2004 includes amounts previously classified as
        dividends on Convertible Subordinated Securities.  See footnote (b) to
        the consolidated balance sheets for further detail.