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Grande Lakes Orlando Refinances Debt

Marriott International, Inc.
today announced that Grande Lakes Orlando, owned by an affiliate of Thayer
Lodging Group, refinanced its original construction financing in late 2004
with Barclay’s Capital. As a result, Marriott International received $95
million in repayment of principal and interest of its mezzanine loan to
the venture. Marriott International was also released from a $75 million
principal guaranty in connection with the refinance. David Weymer, Managing Director of Thayer Lodging, said, “Grande Lakes
Orlando is our flagship project and this new financing enhances the long
term value to our investors. It also validates the value of this world
class resort and confirms our vision in purchasing the property in 2001.”
Totaling $400 million, the Barclay’s loan has an outside maturity date of
2010. Thayer Lodging Group is a private owner of 23 hotels based in
Annapolis, Maryland.

“This transaction not only reduces the cost of debt for the venture, it
also allows Marriott International to recycle substantial capital,” said
Arne Sorenson, Marriott International’s Executive Vice President and Chief
Financial Officer. “With the upturn in lodging demand and the seasoning of
new hotels, Marriott International is likely to recover other loans and
guarantees entered into in prior years. We expect to reinvest the cash in
attractive investment opportunities, including share repurchases.”

Pending reinvestment, Marriott International’s 2005 net interest will
decline as a result of the Grande Lakes refinancing which should reduce
the company’s earnings per share in 2005 by approximately $0.02.

Grande Lakes Orlando is located on a 500-acre estate featuring a 584-room
Ritz-Carlton and a 1,000-room JW Marriott. Complementing these two grand
structures is an 18-hole Greg Norman-designed championship golf course and
a 40,000-square-foot spa. The properties are managed under long-term
agreements with Marriott International.