BETHESDA, Md., Oct. 10 /PRNewswire/ -- Host Marriott Corporation today announced that Host Marriott, L.P. whose sole general partner is Host Marriott Corporation, owner of 122 full service hotel properties, has closed a $250 million senior notes offering. The notes carry a 9 1/4% coupon rate with final maturity of October 1, 2007.

Robert E. Parsons, Jr., executive vice president and chief financial officer for Host Marriott, stated, "We are pleased with the success of this recent senior notes offering. We intend to use the proceeds from this offering to repay approximately $25 million of debt outstanding under our revolving credit facility and for general corporate purposes, which may include the purchase of the Crestline leases, the settlement of our partnership litigation and the purchase, as part of the settlement, of interests in limited partnerships owning Courtyard hotels."

Mr. Parsons continued, "This transaction is in line with our corporate strategy of securing long-term fixed rate debt at reasonable interest rates. This strategy, combined with the growth in cash flow from our existing, high- quality assets, has significantly strengthened Host Marriott's balance sheet and financial capacity. Over the last three years, the company's debt service coverage ratio has increased significantly, which is consistent with the company's strategic goals."

The offer was underwritten by Deutsche Banc Alex. Brown, Banc of America Securities LLC, Bear Stearns & Co. Inc., Donaldson Lufkin & Jenrette, Goldman Sachs & Co., Merrill Lynch & Co., Morgan Stanley Dean Witter, Credit Lyonnais Securities, Scotia Capital and SG Cowen.

Host Marriott is a lodging real estate investment trust, which currently owns or holds controlling interests in 122 upper upscale and luxury hotel properties primarily operated under the Marriott, Ritz-Carlton, Hyatt, Four Seasons, Hilton, and Swissotel brand names. For further information on Host Marriott Corporation, please visit the company's website at http://www.hostmarriott.com.

Certain matters discussed in this press release are forward-looking statements within the meaning of federal securities regulations. All forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual transactions, results, performance or achievements to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. General economic, business and financing conditions, competition and governmental actions will affect future transactions, results, performance and achievements.

The cautionary statements set forth in reports filed with the Securities and Exchange Commission contain important factors with respect to such forward-looking statements, including: (i) national and local economic and business conditions that will, among other things, affect demand for hotels and other properties and the availability and terms of financing; (ii) the ability to maintain the properties in a first-class manner (including meeting capital expenditure requirements); (iii) the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; (iv) the ability to acquire or develop additional properties and risk that potential acquisitions or developments may not perform in accordance with expectations; (v) changes in travel patterns, taxes and government regulations; (vi) governmental approvals, actions and initiatives; (vii) the effects of tax legislative action; and (viii) the ability of the company to satisfy complex rules in order to qualify for taxation as a REIT for federal income tax purposes and to operate effectively within the limitations imposed by these rules. Although the company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained or that any deviations will not be material. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances. SOURCE Host Marriott Corporation

CONTACT: Greg Larson of the Host Marriott Corporation, 301-380-2076/