BETHESDA, Md., Sept. 1 /PRNewswire-FirstCall/ -- Host Marriott Corporation (NYSE: HMT) today announced that it has entered an agreement to acquire the Hyatt Regency Washington, D.C. on Capitol Hill, which is located just two blocks from the U.S. Capitol and within walking distance to the National Mall, Smithsonian Museums and the National Gallery of Art. The hotel features a five-story atrium lobby and 834 newly-renovated guestrooms, including 32 suites, incorporating Hyatt's Grand Bed. The hotel has approximately 41,000 square feet of meeting space, including a 10,767-square foot ballroom and a newly-designed rooftop meeting facility with floor-to-ceiling windows showcasing a commanding view of the U.S. Capitol. The hotel also offers a restaurant and lounge, an indoor pool and a full-service fitness center.

The purchase price is approximately $274 million. The hotel's 2006 Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) is forecasted to be approximately $24.5 million (EBITDA equals forecasted GAAP operating profit of approximately $14.5 million plus depreciation expense of approximately $10 million). The purchase is subject to customary closing conditions and is expected to close at the end of September. The seller is an affiliate of Blackstone Real Estate Advisors.

Host Marriott Corporation is a Fortune 500 lodging real estate company that currently owns or holds controlling interests in 107 upper-upscale and luxury hotel properties operated under premium brands, such as Marriott(R), Ritz-Carlton(R), Hyatt(R), Four Seasons(R), Fairmont(R), Hilton(R) and Westin(R)(*). For further information, please visit the Company's website at http://www.hostmarriott.com.

This press release contains forward-looking statements within the meaning of federal securities regulations. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," estimate," "expect," "intend," "may," "plan," predict," "project," "will," "continue" and other similar terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions, including the potential for terrorist attacks, that will affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; relationships with property managers; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; our ability to complete pending acquisitions and dispositions; and our ability to continue to satisfy complex rules in order for us to qualify as a Real Estate Investment Trust for federal income tax purposes and other risks and uncertainties associated with our business described in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of September 1, 2005 and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

(*) This press release contains registered trademarks that are the exclusive property of their respective owners, which are companies other than us. The owners of these trademarks have no responsibility or liability for the information contained in this press release.

SOURCE Host Marriott Corporation

CONTACT: Kevin J. Jacobs, Vice President, +1-240-744-5212, or Gregory J. Larson, Senior Vice President Investor Relations, +1-240-744-5120, both of Host Marriott Corporation