HMT Host Marriott Cp

BETHESDA, Md., Feb. 15 /PRNewswire-FirstCall/ -- Host Marriott Corporation (NYSE:HMT) today announced that in two separate transactions it has sold the Fort Lauderdale Marina Marriott hotel ("Fort Lauderdale Marina") and that it has reached a definitive agreement to sell the Swissotel The Drake, New York ("The Drake"). The total gross sale proceeds from both transactions are expected to approximate $586 million. The sale of the Fort Lauderdale Marina closed on January 27, 2006 and the sale of The Drake is subject to customary closing conditions and is expected to close in March. The proceeds are expected to be used to partially fund the Company's pending purchase of a portfolio of 38 hotels from Starwood Hotels & Resorts Worldwide, Inc. (Logo: http://www.newscom.com/cgi-bin/prnh/20040324/HOSTMARRIOTTLOGO ) The 579-room Fort Lauderdale Marina is a 25-year-old property that consists of a 273-room main tower and two low-rise wings. The hotel sustained significant property damage and business interruption from Hurricane Wilma, and currently is operating without the use of its main tower. Host expects to receive future insurance proceeds associated with these events, which could be meaningful, and will retain those proceeds under the terms of the sale of the hotel. The Drake is a 495-room hotel located on the corner of Park Avenue and 56th Street in Manhattan that originally opened in 1927. Also conveying with the sale of the property are a small, adjacent building and certain other related assets. Christopher J. Nassetta, president and chief executive officer, noted, "We are thrilled to announce the sales of the Fort Lauderdale Marina Marriott and The Drake New York. These strategic sales are indicative of the strategy we have articulated of capitalizing on value enhancement opportunities inherent in our world-class portfolio of real estate. The execution of these transactions also represents the first of our planned steps to finance the cash portion of our pending acquisition from Starwood." The hotels' combined Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) was forecast to be approximately $23 million for full year 2005, prior to the effect of Hurricane Wilma on the earnings of the Fort Lauderdale Marina (EBITDA equals combined GAAP operating profit of approximately $14 million plus combined depreciation expense of approximately $9 million). These sales will be incorporated into the Company's updated 2006 guidance that will be released in conjunction with the release of its 2005 earnings on February 23, 2006. Host Marriott Corporation is a Fortune 500 lodging real estate company that currently owns or holds controlling interests in 105 upper upscale and luxury hotel properties primarily operated under premium brands, such as Marriott(R), Ritz-Carlton(R), Hyatt(R), Four Seasons(R), Fairmont(R), Hilton(R) and Westin(R) (*). For further information, please visit the Company's website at http://www.hostmarriott.com/. This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," estimate," "expect," "intend," "may," "plan," predict," "project," "will," "continue" and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions, including the potential for terrorist attacks, that will affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; relationships with property managers; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; our ability to complete pending acquisitions and dispositions; and our ability to continue to satisfy complex rules in order for us to qualify as a Real Estate Investment Trust for federal income tax purposes and other risks and uncertainties associated with our business described in the Company's filings with the Securities and Exchange Commission. The completion of the sale of The Drake is subject to numerous closing conditions, including the accuracy of representations and warranties and compliance with certain covenants and there can be no assurances that these conditions will be satisfied. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of February 15, 2006, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. (*) This press release contains registered trademarks that are the exclusive property of their respective owners. None of the owners of these trademarks has any responsibility or liability for any information contained in this press release. First Call Analyst: FCMN Contact: louise.allebach@hostmarriott.com http://www.newscom.com/cgi-bin/prnh/20040324/HOSTMARRIOTTLOGO http://photoarchive.ap.org/ DATASOURCE: Host Marriott Corporation CONTACT: Kevin J. Jacobs, Vice President Corporate Finance, +1-240-744-5212, or Gregory J. Larson, Treasurer, Senior Vice President Investor Relations, +1-240-744-5120, both of Host Marriott Corporation Web site: http://www.hostmarriott.com/

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