Host Marriott Corporation
today announced that it has signed an agreement to acquire The Fairmont
Kea Lani Maui which is located in the exclusive Wailea Resort area. The
resort features 450 suites comprised of 413 spacious 2-room suites with
five-fixture bathrooms and 37 two and three bedroom beachfront villa units
each of which has a private swimming pool. The resort is located on 21
acres of fee simple beachfront property on Wailea’s Polo Beach. The resort
facilities comprise six restaurants, a spa and fitness center, three pools
and numerous retail outlets. The resort includes over 11,000 square feet
of indoor meeting space and an additional 20,000 square feet of outdoor
function space. The Fairmont Kea Lani Maui represents the Company’s first
property managed by Fairmont Hotels & Resorts. The purchase price is $355 million. The resort’s 2004 Earnings Before
Interest Expense, Taxes, Depreciation, Amortization (EBITDA) is forecasted
to be approximately $30 million (EBITDA equals forecasted GAAP operating
profit of $23 million plus depreciation expense of $7 million). The
purchase is subject to customary closing conditions and is expected to
close in August.

Christopher J. Nassetta, president and chief executive officer, stated,
“We are extremely pleased to announce this acquisition. This resort will
represent our second acquisition in Hawaii and our first in Wailea, which
we believe to be a high growth market and the top market in Hawaii. The
expected strong growth rate should produce long-term yields that
significantly exceed our weighted-average cost of capital. This resort
will be the first Fairmont- managed resort in our portfolio and we look
forward to partnering with Fairmont to further build on the exceptional
reputation of The Fairmont Kea Lani Maui. This investment is
representative of our strategy of acquiring high quality assets in
difficult to replace locations with significant barriers to entry.”

Host Marriott Corporation is a Fortune 500 lodging real estate company,
which owns 111 upscale and luxury full-service hotel properties primarily
operated under Marriott, Ritz-Carlton, Hyatt, Four Seasons, Hilton and
Westin brand names.
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