Host Hotels & Resorts, Inc. Reports Outstanding Operating Results for the First Quarter 2007

• Total revenue increased 25.7% to $1,037 million for the first quarter of 2007, which includes $151 million of revenues for the Starwood portfolio acquired in April 2006. Excluding the revenues from the Starwood portfolio, revenues increased 7.4%.

• Net income increased $15 million to $187 million for the first quarter of 2007. Earnings per diluted share decreased $.09 to $.35 for the first quarter of 2007, primarily as a result of the shares issued in the second quarter of 2006 for the acquisition of the Starwood portfolio. Earnings per diluted share from continuing operations increased by $.06 to $.08 for the quarter.

Net income includes a net gain of $136 million, or $.26 per diluted share, for the first quarter of 2007 and $146 million, or $.39 per diluted share, for the first quarter of 2006 from gains on hotel dispositions.

• Funds from Operations (FFO) per diluted share increased $.03 to $.30 for the first quarter of 2007.

The Company also announced the following first quarter results for Host Hotels & Resorts, L.P., through which it conducts all of its operations and holds 96.6% of the partnership interests:

• Net income increased $13 million to $194 million for the first quarter of 2007. Net income of Host LP was also affected by gains on hotel dispositions -- See "Schedule of Significant Transactions Affecting Earnings per Share."

• Adjusted EBITDA, which is Earnings before Interest Expense, Income Taxes, Depreciation, Amortization and other items, increased 24% to $263 million for the first quarter of 2007, primarily due to growth in EBITDA from the Company's comparable hotel portfolio and EBITDA generated by the Starwood portfolio.

Adjusted EBITDA, FFO per diluted share and comparable hotel adjusted operating profit margins (discussed below) are non-GAAP (generally accepted accounting principles) financial measures within the meaning of the rules of the Securities and Exchange Commission (SEC). See the discussion included in this press release for information regarding these non-GAAP financial measures.

Operating Results

Comparable hotel RevPAR for the first quarter of 2007 increased 6.2%, driven by a 6.5% increase in average room rate, while occupancy declined 0.2 percentage points. In addition to comparable hotel RevPAR, the Company is presenting the RevPAR for its comparable hotels plus the Starwood portfolio acquired in 2006 due to the significant contribution of these hotels to the Company's operations. RevPAR for the comparable hotels plus the Starwood portfolio, which includes the 24 hotels acquired from Starwood in 2006 that we own as of March 23, 2007, increased 7.0% for the quarter, driven by a 6.3% increase in average room rate and a .5 percentage point increase in occupancy. For further detail, see "Notes to the Financial Information." Comparable hotel adjusted operating profit margins increased 0.3 percentage points when compared to the first quarter of 2006.

Christopher J. Nassetta, president and chief executive officer, stated, "We were pleased to have carried over the momentum from a strong 2006 into the first quarter of 2007. Our continued strong operating performance resulted in FFO per diluted share of $.30, which exceeded the high-end of our guidance by $.02."

Asset Dispositions

During the first quarter of 2007, the Company sold seven non-core properties for total proceeds of approximately $333 million and recorded a gain from the sales of approximately $141 million during the quarter.

Financing Activities and Balance Sheet

During the first quarter, the Company continued to extend its maturity profile and reduce interest costs, as well as manage its capital structure to provide financial flexibility. On March 23, 2007, the Company issued, through Host Hotels & Resorts, L.P., $600 million of 2 5/8% Exchangeable Senior Debentures due 2027 and received net proceeds of approximately $589 million. The Company also repaid the $250 million outstanding balance under its credit facility and currently has $575 million of available capacity on the facility.

The Company completed the following mortgage debt transactions in 2007 (in millions):

                                                        Maturity

  Date                  Property               Rate       Date        Amount

  Issuances

  February      Harbor Beach Marriott          5.55%     3/1/2014       $134

  March         The Ritz-Carlton, Naples and

                 Newport Beach Marriott        5.53%     3/1/2014        300



  Repayments

  February      Harbor Beach Marriott          8.58%     2/8/2007         88

  March         JW Marriott, Washington, D.C.  7.42%     3/7/2007         88

  April         Four Seasons Hotel Atlanta     8.41%     4/1/2022         33

  April         Philadelphia Marriott

                 Convention Center             8.52%     4/1/2009         96

As of March 23, 2007, the Company had approximately $1,171 million of cash and cash equivalents, approximately $800 million of which has been, or is expected to be, used to prepay mortgage debt and related costs and to pay common and preferred dividends in the second quarter. As a result of the completed and anticipated second quarter mortgage debt repayments, including the April transactions detailed above, the Company expects its total debt balance will be approximately $5,820 million. Excluding amounts necessary for working capital, the Company intends to use its remaining available funds to further invest in its portfolio, acquire new properties or make further debt repayments.

Dividend

As previously announced, the Company expects to declare a fixed $.20 per share common dividend each quarter, as well as a special dividend in the fourth quarter of each year, the amount of which will be based on the Company's taxable income. Based on the Company's 2007 guidance, the Company expects meaningful growth in the fourth quarter special dividend relative to the 2006 special dividend of $.05 per share.

2007 Outlook

The Company expects comparable hotel RevPAR to increase approximately 6.5% to 8.0% for the full year. The Company expects RevPAR for the comparable hotels plus the Starwood portfolio to increase approximately 6.5% to 8.5% for both the second quarter and full year. For full year 2007, the Company expects its operating profit margins under GAAP to increase approximately 30 basis points to 80 basis points and its comparable hotel adjusted operating profit margins to increase approximately 100 basis points to 125 basis points. Based upon this guidance, the Company estimates that full year 2007 guidance for Host Hotels & Resorts, Inc. and Host Hotels & Resorts, L.P. would be as follows:

Host Hotels & Resorts, Inc.
• earnings per diluted share should be approximately $.20 to $.22 for the second quarter and $1.05 to $1.13 for the full year;

• net income should be approximately $109 million to $119 million for the second quarter and $573 million to $619 million for the full year; and

• FFO per diluted share should be approximately $.43 to $.45 for the second quarter and $1.76 to $1.84 for the full year (including a charge of approximately $45 million for both the second quarter and full year with a per diluted share effect of $.08 for debt prepayment costs).

Host Hotels & Resorts, L.P.
• net income for full year 2007 should be approximately $594 million to $640 million; and

• Adjusted EBITDA for full year 2007 should be approximately $1,450 million to $1,490 million.

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