Host Marriott cuts Starwood hotels from deal

29th Mar 2006

Host Marriott Corp. said it had changed a deal that had originally called for it to buy 38 hotels from Starwood Hotels and Resorts Worldwide Inc. to exclude three hotels in Canada.

Host Marriott said that as a result, the overall purchase price for the transaction—scheduled to close on April 10—has been reduced by about $276 million to $3.76 billion.

The three Canadian hotels will be left out of the deal because Starwood was unable to obtain a necessary tax ruling, Host Marriott told Reuters news agency.

As a result, Host Marriott’s estimated earnings before interest, taxes, depreciation and amortization for 2006 will be reduced by about $20 million, the company said.


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