Host Marriott Intention to Repay Debt

30th Dec 2003

Host Marriott Corporation today announced its intention to repay
approximately $295 million of debt with the proceeds remaining from the
resolution of outstanding issues on the New York Marriott World Trade
Center and Financial Center Hotels announced on December 3, 2003 after
repayment of the $65 million loan on the World Trade Center Hotel. The
repayment will include the redemption by Host Marriott, L.P. of the
remaining $218 million of 8.45% Series C senior notes due in 2008, a
partial repayment of the mortgage debt secured by the Company`s four
Canadian properties of approximately $33 million and a partial repayment
of the mortgage debt secured by two of the Company`s Ritz-Carlton hotels
located in the Buckhead section of Atlanta, Georgia and Naples, Florida of
approximately $44 million. Repayment of this debt will result in an annual
reduction in interest expense of approximately $24 million.

The terms of the Series C notes require the payment of a premium to the
holders in exchange for the right to retire these notes in advance of
their maturity date. The date of redemption of the Series C notes is
January 30, 2004. All of the debt repayments will trigger the acceleration
of deferred financing fees. The accelerated deferred financing fees and
call premiums will total approximately $12 million.

The partial repayment of the Canadian mortgage debt will result in the
related forward currency contracts hedge being deemed ineffective for
accounting purposes, resulting in a decrease in net income and Adjusted
EBITDA of approximately $19 million. The currency contracts were entered
into as a requirement of the lenders at the origination of the loan.

As a result of these transactions, the Company will recognize an increase
in expenses of approximately $18 million (which represents the loss on the
hedge and the acceleration of deferred financing fees for a certain
portion of the Canadian loan less minority interest) in 2003 and $11
million (which represents call premiums and deferred financing fees less
minority interest) in 2004. Accordingly, the Company is issuing the
following updated guidance for full year 2003:

* Net income (loss) should decrease approximately $18 million to a range
of $(7) million to $7 million; * Diluted loss available to common
shareholders per share should decrease approximately $.07 to a range of
$(.15) to $(.10); * FFO per diluted share should decrease approximately
$.07 to a range of $.94 to $.98; and * Adjusted EBITDA should decrease
approximately $19 million to a range of $696 million to $711 million.


See schedules below for a reconciliation of the net loss available to
common stockholders to FFO per diluted share and a reconciliation of net
income to Adjusted EBITDA, both of which are non-GAAP financial measures
within the meaning of the Securities and Exchange Commission, or SEC,

Host Marriott is a Fortune 500 lodging real estate Company, which owns 117
upscale and luxury full-service hotel properties primarily operated under
Marriott, Ritz-Carlton, Four Seasons, Hyatt and Hilton brand names. For
further information on Host Marriott Corporation, please visit the
Company`s website at




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