HMT Host Marriott Cp

Host Marriott Corporation Closes on the Sale of 85% of its Courtyard Joint Venture Interest for Approximately $92 Million BETHESDA, Md., March 30 /PRNewswire-FirstCall/ -- Host Marriott Corporation (NYSE:HMT) announced today that it has sold 85% of its interest in the Courtyard joint venture to Sarofim Realty Advisors for approximately $92 million. As previously announced, Sarofim's initial equity investment in the Courtyard joint venture will be used to acquire approximately 85% of Host Marriott's interest for approximately $92 million and to invest approximately $240 million of new equity into the joint venture. Based on this valuation, Host Marriott's total equity interest in the Courtyard joint venture is valued at approximately $108 million. Under the terms of the agreement, Host Marriott will have the right to cause the partnership to redeem its remaining joint venture interest under certain conditions between 2007 and 2009. Thereafter, the partnership will have the right to redeem Host Marriott's remaining interest. (Logo: http://www.newscom.com/cgi-bin/prnh/20040324/HOSTMARRIOTTLOGO ) Christopher J. Nassetta, president and chief executive officer, stated, "We are pleased to conclude this transaction which provides us with a favorable exit strategy from the majority of our interest in this non-core investment at attractive pricing. The proceeds of this sale will be reinvested in the purchase of upper-upscale or luxury hotels consistent with our target profile, return on investment projects or the repayment of debt." Banc of America Securities LLC served as financial adviser to Host Marriott in connection with the transaction. Host Marriott is a Fortune 500 lodging real estate company that owns or holds controlling interests in 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 additional 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; 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. 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 March 29, 2005, 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. http://www.newscom.com/cgi-bin/prnh/20040324/HOSTMARRIOTTLOGO http://photoarchive.ap.org/ DATASOURCE: Host Marriott Corporation CONTACT: Gregory J. Larson, Senior Vice President of Host Marriott Corporation, +1-240-744-5120 Web site: http://www.hostmarriott.com/

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