Marriott International,
Inc. announced today that it has signed an agreement with Whitbread PLC to
establish a 50/50 joint venture to acquire Whitbread’s portfolio of 46
franchised Marriott and Renaissance hotels of over 8,000 rooms, and for
Marriott to take over management of the entire portfolio of hotels upon
the transfer of the hotels to the new joint venture. The joint venture
expects to sell properties to investors over the next two years subject to
long-term Marriott International management agreements. The agreements are
subject to Whitbread shareholder approval and other conditions. Closing is
expected to occur in May 2005. Edwin D. Fuller, president and managing director of Marriott Lodging -
International, said, “We are pleased to announce this agreement today, and
want to acknowledge the strong relationship our two companies have enjoyed
over the years. We look forward to operating the best portfolio of full
service hotels in the U.K. with a highly valued and effective team of
dedicated associates, and to new opportunities for growth of our
management business in Britain and across Europe.”

Marriott will contribute to the joint venture 90 million pounds Sterling
in the second quarter of 2005 for a 50 percent stake in the joint venture.
Whitbread will contribute its interest in the 46 hotels, the joint venture
will place approximately 660 million pounds of debt on the property, and
Whitbread will receive 710 million pounds and the other 50 percent stake
in the venture. As the joint venture sells the hotels, Marriott’s interest
in the joint venture will be repaid.

Marriott estimates that the after-tax earnings per share impact of the
joint venture and related transactions will be modestly accretive in 2005
and in 2006.
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