BETHESDA, MD, January 11, 2001 – Host Marriott Corporation (NYSE:HMT) and Crestline Capital Corporation (NYSE: CLJ) announced they have completed the purchase and sale of the leases held by Crestline Capital on certain full-service hotels owned by Host Marriott. The total consideration for the sale was $201 million, all-cash, which reflects the deferral of the purchase of one of the leases. The transaction is effective as of January 1, 2001, the effective date of the REIT Modernization Act (RMA), which allows lodging REITs to lease their hotels to subsidiaries.
Mr. Christopher J. Nassetta, Host Marriott president and chief executive officer, stated, “The consummation of this transaction allows us to simplify our corporate structure, better control our premier full-service hotels and is significantly accretive to FFO per share.”
Host Marriott Corporation is a lodging real estate company which owns 122 upscale and luxury full-service hotel properties primarily operated under Marriott, Ritz-Carlton, Four Seasons, Hyatt, Hilton and Swissôtel brand names. For further information on Host Marriott Corporation, please visit the Company’s website at www.hostmarriott.com.
Crestline Capital Corporation is the parent company of Crestline Hotels & Resorts, among the nation’s leading independent hotel management companies, and is the owner of one of the nation’s premier senior living community and hotel portfolios. Additional information about Crestline Capital Corporation is available at the company’s web site: www.crestlinecapital.com.
Note: Certain matters discussed herein are forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Certain, but not necessarily all, of such statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “will,” “should,” “estimates” or “anticipates” or the negative thereof or comparable terminology. All forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause
the actual transactions, results, performance or achievements of the Company to be materially different from any future transactions, results, performance or achievements expressed or implied by such forward-looking statements. These may include: (i) national and local economic and business conditions or governmental regulations that will affect demand, prices, wages or other costs for hotels and senior living communities; (ii) the level of rates and occupancy that can be achieved by such properties; (iii) the Company’s ability to compete effectively in areas such as access, location, quality of properties and rate structures; (iv) the ability to maintain the properties in a first-class manner (including meeting capital expenditure requirements); (v) the availability and terms of financing; (vi) governmental actions and initiatives including the REIT Modernization Act; and (vii) changes to the public pay systems for medical care and the need for compliance with environmental licensure and safety requirements. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions and business opportunities, 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.
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