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 Marriott International, Inc. Sells Land Underlying 75 Courtyard by Marriott
Hotels for Approximately $246 million to CBM Land JV Limited Partnership
Marriott Expects Pretax Gain of Approximately $17 Million in 2005 

WASHINGTON, Dec. 30, 2005 - Marriott International, Inc. (NYSE: MAR) announced today that it has completed the sale of a portfolio of land underlying 75 Courtyard by Marriott hotels for approximately $246 million in cash to CBM Land Joint Venture limited partnership (CBM Land JV). CBM Land JV is a joint venture majority-owned by Sarofim Realty Advisors (Sarofim), on behalf of an institutional investor. In addition, Marriott announced that it has contributed land underlying an additional 9 Courtyard hotels, worth approximately $40 million, to CBM Land JV, thereby retaining an approximately 23 percent equity stake in CBM Land JV.

As a result of the land sale, Marriott expects to record a one-time pre- tax gain of approximately $17 million in 2005. As a result of the lost rental income, operating income in 2006 will be reduced by approximately $20.7 million, offset by interest expense savings and equity earnings of approximately $18.1 million, a less than $0.01 reduction in earnings per share until such time as the proceeds are fully invested.

Arne M. Sorenson, Marriott's executive vice president and chief financial officer, and president of continental European lodging, said, "We are pleased to conclude a transaction that both meaningfully benefits our return on invested capital moving forward and aligns well with our strategy of creating value through managing hotels rather than owning real estate."

The 84 parcels of land continue to be leased to the Courtyard by Marriott Joint Venture, which was substantially acquired by Sarofim Realty Advisors for the same institutional client on March 29, 2005. That acquisition recapitalized that joint venture and accelerated the reinvention of its 120 Courtyard hotels. Similar to today's announcement, in that transaction Marriott agreed to maintain a minority ownership stake in that joint venture for at least three years.

This press release contains "forward-looking statements" within the meaning of federal securities laws, including the anticipated effect of the transactions described above on Marriott's future earnings. 

MARRIOTT INTERNATIONAL, INC. is a leading lodging company with more than 2,700 lodging properties in the United States and 65 other countries and territories. 


Marriott International, Inc.

Also See: Host Marriott Enters Into an Agreement to Sell 85% of its Courtyard Joint Venture Interest for Approximately $92 Million; Proceeds Targeted for Luxury Hotel Acquisitions / December 2004
Sarofim Realty Advisors Building 350 room Marriott Hotel, Conference Center at Horseshoe Bay Resort, Texas / July 2003

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