Host Marriott plans strategic sales

16th Feb 2006

Host Marriott Corporation has sold the Fort Lauderdale Marina Marriott hotel and agreed to sell the Swissotel The Drake, New York.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.

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
  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.”


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