Year-to-date ended September 9, 2005 Average Average Occupancy
Daily Rate Percentages RevPAR Pacific $170.81 77.9% $133.11 Florida
177.40 74.8 132.65 Mid-Atlantic 195.12 79.1 154.29 North Central
129.17 67.1 86.67 DC Metro 177.98 78.3 139.41 Atlanta 150.30 68.2
102.50 South Central 133.74 76.7 102.60 New England 151.15 71.4
107.98 Mountain 111.24 64.4 71.62 International 131.45 72.2 94.95
All Regions 163.17 74.5 121.55 Year-to-date ended September 10,
2004 Average Percent Occupancy Change Average Percent- in Daily
Rate ages RevPAR RevPAR Pacific $160.32 75.6% $121.26 9.8% Florida
166.53 73.5 122.33 8.4 Mid-Atlantic 178.16 77.6 138.28 11.6 North
Central 119.33 68.6 81.82 5.9 DC Metro 160.16 75.5 120.87 15.3
Atlanta 145.56 68.7 99.97 2.5 South Central 125.32 76.4 95.78 7.1
New England 145.56 73.2 106.57 1.3 Mountain 104.33 60.4 63.04 13.6
International 120.72 72.8 87.83 8.1 All Regions 151.75 73.4 111.44
9.1 Comparable Hotels by Property Type (a) As of September 9, 2005
No. of No. of Properties Rooms Urban 39 22,874 Suburban 34 12,492
Airport 16 16 7,328 Resort/Convention 10 6,388 All Types 99 49,082
Quarter ended September 9, 2005 Average Average Occupancy Daily
Rate Percentages RevPAR Urban $168.27 78.4% $131.96 Suburban 130.54
71.3 93.02 Airport 16 115.45 78.5 90.63 Resort/Convention 185.81
70.9 131.68 All Types 153.38 75.6 115.98 Quarter ended September
10, 2004 Average Percent Occupancy Change Average Percent- in Daily
Rate ages RevPAR RevPAR Urban $159.22 77.2% $122.90 7.4% Suburban
121.76 69.3 84.43 10.2 Airport 16 107.88 76.5 82.54 9.8
Resort/Convention 171.88 72.0 123.84 6.3 All Types 144.24 74.4
107.34 8.0 As of September 9, 2005 No. of No. of Properties Rooms
Urban 39 22,874 Suburban 34 12,492 Airport 16 7,328
Resort/Convention 10 6,388 All Types 99 49,082 Year-to-date ended
September 9, 2005 Average Average Occupancy Daily Rate Percentages
RevPAR Urban $176.35 77.5% $136.69 Suburban 131.87 68.6 90.44
Airport 120.53 76.0 91.62 Resort/Convention 220.93 73.5 162.49 All
Types 163.17 74.5 121.55 Year-to-date ended September 10, 2004
Average Percent Occupancy Change Average Percent- in Daily Rate
ages RevPAR RevPAR Urban $164.23 75.9% $124.62 9.7% Suburban 122.47
67.5 $82.71 9.3 Airport 112.22 75.6 84.85 8.0 Resort/Convention
204.98 73.8 151.35 7.4 All Types 151.75 73.4 111.44 9.1 (a) See the
notes to financial information for a discussion of reporting
periods and comparable hotel results. 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 Sept. Sept. Sept. Sept. 9, 10, 9,
10, 2005 2004 2005 2004 Number of hotels 99 99 99 99 Number of
rooms 49,082 49,082 49,082 49,082 Percent change in Comparable
Hotel RevPAR 8.0% - 9.1% - Operating profit margin under GAAP (b)
8.3% 5.6% 12.7% 10.6% Comparable hotel adjusted operating profit
margin (c) 20.2% 18.4% 23.8% 22.1% Comparable hotel sales Room $489
$452 $1,491 $1,371 Food and beverage 221 208 754 717 Other 54 51
167 157 Comparable hotel sales (d) 764 711 2,412 2,245 Comparable
hotel expenses Room 125 119 364 345 Food and beverage 182 174 568
545 Other 34 34 103 99 Management fees, ground rent and other costs
269 253 802 760 Comparable hotel expenses (e) 610 580 1,837 1,749
Comparable hotel adjusted operating profit 154 131 575 496
Non-comparable hotel results, net (f) 17 14 61 49 Office buildings
and limited service properties, net (g) - - - (1) Depreciation and
amortization (85) (83) (254) (242) Corporate and other expenses
(16) (18) (45) (43) Operating profit $70 $44 $337 $259 (a) See the
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
table above. (d) The reconciliation of total revenues per the
consolidated statements of operations to the comparable hotel sales
is as follows: Quarter ended Year-to-date ended Sept. Sept. Sept.
Sept. 9, 10, 9, 10, 2005 2004 2005 2004 Revenues per the
consolidated statements of operations $841 $781 $2,647 $2,452
Revenues of hotels held for sale 3 2 8 7 Non-comparable hotel sales
(72) (62) (224) (181) Hotel sales for the property for which we
record rental income, net 10 8 35 31 Rental income for office
buildings and limited service hotels (18) (18) (54) (53) Adjustment
for hotel sales for comparable hotels to reflect Marriott's fiscal
year for Marriott-managed hotels - - - (11) Comparable hotel sales
$764 $711 $2,412 $2,245 (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 Sept. Sept. Sept. Sept. 9, 10, 9, 10, 2005 2004
2005 2004 Operating costs and expenses per the consolidated
statements of operations $771 $737 $2,310 $2,193 Operating cost of
hotels held for sale 3 2 7 6 Non-comparable hotel expenses (55)
(48) (162) (133) Hotel expenses for the property for which we
record rental income 10 8 35 32 Rent expense for office buildings
and limited service hotels (18) (18) (54) (54) Adjustment for hotel
expenses for comparable hotels to reflect Marriott's fiscal year
for Marriott- managed hotels - - - (10) Depreciation and
amortization (85) (83) (254) (242) Corporate and other expenses
(16) (18) (45) (43) Comparable hotel expenses $610 $580 $1,837
$1,749 (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 statement of operations as continuing operations and
(ii) the difference between the number of days of operations
reflected in the comparable hotel results and the number of days of
operations reflected in the consolidated statements of operations.
For further detail, see "Notes to Financial Information." (g)
Represents rental income less rental expense for limited service
properties and office buildings. For further detail, see footnote
(b) to the consolidated statements of operations. HOST MARRIOTT
CORPORATION Other Financial and Operating Data (unaudited, in
millions, except per share amounts) September 9, December 31, 2005
2004 Equity Common shares outstanding 353.3 350.3 Common shares and
minority held common OP Units outstanding 373.3 371.3 Preferred OP
Units outstanding .02 .02 Class B Preferred shares outstanding (a)
- 4.0 Class C Preferred shares outstanding 6.0 6.0 Class D
Preferred shares outstanding (a) - .03 Class E Preferred shares
outstanding 4.0 4.0 Security pricing (per share price) Common (b)
$17.65 $17.30 Class B Preferred (a) (b) $- $25.80 Class C Preferred
(b) $26.10 $26.37 Class E Preferred (b) $27.19 $27.45 Convertible
Preferred Securities (c) $57.85 $57.25 Exchangeable Senior
Debentures (d) $1,122.50 $1,156.00 Dividends declared per share for
calendar year Common (e) $.29 $.05 Class A Preferred (f) $- $1.38
Class B Preferred (a) $.87 $2.50 Class C Preferred (e) $1.88 $2.50
Class D Preferred (a) $.87 $2.50 Class E Preferred (e) $1.66 $1.37
Debt Series B senior notes, with a rate of 7 7/8% due August 2008
$136 $304 Series E senior notes, with a rate of 8 3/8% due February
2006 - 300 Series G senior notes, with a rate of 9 1/4% due October
2007 (g) 237 243 Series I senior notes, with a rate of 9 1/2% due
January 2007 (h) 455 468 Series K senior notes, with a rate of 7
1/8% due November 2013 725 725 Series M senior notes, with a rate
of 7% due August 2012 (i) 346 346 Series O senior notes, with a
rate of 6 3/8% due March 2015 (j) 650 - Exchangeable Senior
Debentures, with a rate of 3.25% due April 2024 492 491 Senior
notes, with an average rate of 9.7%, maturing through 2012 13 13
Total senior notes 3,054 2,890 Mortgage debt (non-recourse) secured
by $2.8 billion of real estate assets, with an average interest
rate of 7.7% at September 9, 2005 and December 31, 2004,
respectively 1,858 2,043 Credit facility (k) - - Convertible
Subordinated Debentures, with a rate of 6 3/4% due December 2026
492 492 Other 97 98 Total debt $5,501 $5,523 Percentage of fixed
rate debt 85% 85% Weighted average interest rate 7.0% 7.1% Weighted
average debt maturity 6.9 years 6.6 years Quarter ended
Year-to-date ended Sept. Sept. Sept. Sept. 9, 10, 9, 10, 2005 2004
2005 2004 Hotel Operating Statistics for All Full-Service
Properties (l) Average daily rate $155.59 $142.30 $164.46 $148.53
Average occupancy 74.5% 74.0% 73.7% 73.3% RevPAR $115.97 $105.32
$121.22 $108.90 (a) On May 20, 2005, we redeemed, at par, all four
million shares of our 10% Class B Cumulative Redeemable Preferred
stock for approximately $101 million, including accrued dividends
and all 33,182 shares of our 10% Class D Cumulative Redeemable
Preferred stock. (b) Share prices are the closing price as reported
by the New York Stock Exchange. (c) Market price as quoted by
Bloomberg L.P. Amount reflects the price of a single $50 security,
which is convertible into common stock upon the occurrence of
certain events. (d) Market price as quoted by Bloomberg L.P. Amount
reflects the price of a single $1,000 debenture, which is
exchangeable for common stock upon the occurrence of certain
events. (e) On September 19, 2005, we declared a third quarter
common dividend of $.11 per share and preferred dividends per share
for our Class C and Class E preferred stock of $.625 and $.5546875,
respectively. (f) On August 3, 2004, we redeemed all 4.16 million
shares of the outstanding Class A preferred stock at a price of
$25.00 per share plus dividends accrued to that date. (g) Includes
the fair value of interest rate swap agreements of $(5) million and
$1 million as of September 9, 2005 and December 31, 2004,
respectively. (h) Includes the fair value of interest rate swap
agreements of $5 million and $18 million as of September 9, 2005
and December 31, 2004, respectively. (i) On March 3, 2005, we
exchanged all of our 7% Series L senior notes due 2012 for our 7%
Series M senior notes due 2012. The terms of the Series L senior
notes and the Series M senior notes are substantially identical in
all material respects, except that the Series M senior notes are
registered under the Securities Act of 1933 and are, therefore,
freely transferable by the holders. (j) On July 19, 2005, we
exchanged all of our 6 3/8% Series N senior notes for our 6 3/8%
Series O senior notes. The terms of the Series O senior notes and
the Series N senior notes are substantially identical in all
material respects, except that the Series O senior notes are
registered under the Securities Act of 1933 and are, therefore,
freely transferable by the holders. (k) Our credit facility has an
available capacity of $575 million and there are currently no
amounts outstanding. (l) The operating statistics reflect all
consolidated properties as of September 9, 2005 and September 10,
2004, respectively. The operating statistics include the results of
operations for four properties sold in the first quarter of 2005
and nine properties sold in 2004 prior to their disposition. HOST
MARRIOTT CORPORATION Reconciliation of Net Income (Loss) Available
to Common Stockholders to Funds From Operations per Diluted Share
(unaudited, in millions, except per share amounts) Quarter ended
Quarter ended September 9, 2005 September 10, 2004 Per Per Income
Share Income Share (Loss)Shares Amount (Loss)Shares Amount Net loss
available to common stockholders $(11) 353.1 $(.03) $(60) 348.7
$(.17) Adjustments: Amortization of deferred gains, net of taxes
(1) - - (4) - (.01) Depreciation and amortization 85 - .24 85 - .24
Partnership adjustments 1 - - 1 - - FFO of minority partners of
Host LP (a) (4) - (.01) (1) - - Adjustments for dilutive
securities: Assuming distribution of common shares granted under
the comprehensive stock plan less shares assumed purchased at
average market price - 2.3 - - 2.0 - Assuming conversion of
Exchangeable Senior Debentures 4 27.7 (.01) - - - FFO per diluted
share (b) (c) $74 383.1 $.19 $21 350.7 $.06 Year-to-date ended
Year-to-date ended September 9, 2005 September 10, 2004 Per Per
Income Share Income Share (Loss)Shares Amount(Loss)Shares Amount
Net income (loss) available to common stockholders $67 352.6 $.19
$(93) 331.5 $(.28) Adjustments: Gains on dispositions, net of taxes
(54) - (.15) (20) - (.06) Amortization of deferred gains, net of
taxes (5) - (.02) (8) - (.02) Depreciation and amortization 254 -
.72 251 - .75 Partnership adjustments 9 - .03 12 - .04 FFO of
minority partners of Host LP (a) (15) - (.04) (9) - (.03)
Adjustments for dilutive securities: Assuming distribution of
common shares granted under the comprehensive stock plan less
shares assumed purchased at average market price - 2.4 (.01) - 2.1
- Assuming conversion of Exchangeable Senior Debentures 13 27.7
(.02) - - - FFO per diluted share (b) (c) $269 382.7 $.70 $133
333.6 $.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,
convertible debt securities and other minority interests that have
the option to convert their limited partnership interest to common
OP units. No effect is shown for securities if they are
anti-dilutive. (c) FFO per diluted share for certain periods
presented was significantly affected by certain transactions, which
are detailed in the table entitled, "Schedule of Significant
Transactions Affecting Earnings per Share, Funds from Operations
per Diluted Share and Adjusted EBITDA." HOST MARRIOTT CORPORATION
Schedule of Significant Transactions Affecting Earnings per Share
and Funds From Operations per Diluted Share (unaudited, in
millions, except per share amounts) Quarter ended Quarter ended
September 9, 2005 September 10, 2004 Net Income Net Income Loss FFO
Loss FFO Senior notes redemptions and debt prepayments (a) $- $-
$(14) $(14) Preferred stock redemption (b) - - (6) (6) Minority
interest income (c) - - 1 1 Total $- $- $(19) $(19) Per diluted
share $- $- $(.05) $(.05) Year-to-date ended Year-to-date ended
September 9, 2005 September 10, 2004 Net Income Net Income Loss FFO
Loss FFO Senior notes redemptions and debt prepayments (a) $(34)
$(34) $(59) $(59) Preferred stock redemptions (b) (4) (4) (6) (6)
Gain on CBM Joint Venture LLC sale, net of taxes (d) 42 - - - Gain
on hotel dispositions, net of taxes 12 - 20 - Minority interest
income (expense) (c) (1) 2 2 4 Total $15 $(36) $(43) $(61) Per
diluted share (e) $.04 $(.09) $(.13) $(.18) (a) Represents call
premiums and the acceleration of original issue discounts and
deferred financing costs, as well as incremental interest during
the call or prepayment notice period, 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 certain periods presented. (b)
Represents the original issuance costs for preferred stock, which
were required to be charged against net income (loss) available to
common stockholders in conjunction with the redemption of the Class
B preferred stock in the second quarter of 2005 and the Class A
preferred stock in the third quarter of 2004. The adjustment in
2004 also includes 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 further detail, see footnote
(d) to the consolidated statements of operations. (c) Represents
the portion of the significant transactions attributable to
minority partners in Host LP. (d) Represents the gain, net of tax,
on the sale of 85% of our interest in CBM Joint Venture LLC. (e)
Prior year per share amounts were adjusted due to the dilutive
effect of the retroactive application of EITF 04-8. PRNewswire --
Oct. 12 SECOND ADD -- SUPPLEMENTAL INFORMATION -- TO FOLLOW
DATASOURCE: Host Marriott Corporation
Copyright