|WASHINGTON, July 2 1998 - Host Marriott Corporation
(NYSE: HMT) announced today it has purchased a 13-acre parcel of land for
the development of a 295-room Ritz-Carlton golf hotel that will serve as
an extension of the 463-room Ritz-Carlton,
Naples which was purchased by Host Marriott in September of 1996.
The existing hotel is undergoing room, restaurant and public space refurbishment
as well as an addition of a world-class spa. The new hotel will have an
emphasis on golf and will be located only two miles east of the current
hotel. In addition, Host has entered into a joint venture through which
it owns 49% of the surrounding 36-hole world-class Greg Norman designed
golf course development.
The total investment by Host Marriott is estimated to be $96.8 million which is expected to be invested over time. The 2001 Earnings Before Interest Expense, Taxes, Depreciation, Amortization and other non-cash items (EBITDA), the first full year of operations from both the hotel and golf courses, is estimated to be $11.7 million.
Mr. Christopher J. Nassetta, executive vice president and chief operating officer, stated, "The strategic combination of the existing Ritz-Carlton, Naples hotel with the new Ritz-Carlton golf hotel and the Greg Norman golf courses will create the preeminent resort destination in the U.S. offering high quality beach, golf and spa facilities. The hotels will be operated by the Ritz-Carlton Hotel Company, L.L.C. as one hotel and will be marketed together to attract larger size groups that could not previously be accommodated."
The site where the new hotel will be developed, Tiburon, is only two miles east of the Ritz-Carlton Naples and will have direct access via regular shuttle service to the existing hotel. The construction of the new hotel is expected to be completed by year end 2000. In addition, the 27-hole Tiburon golf course, designed by Greg Norman, is scheduled for completion by the end of this year at which time will be available for the existing hotel. The joint venture will acquire additional land to develop an additional 9 holes of golf adjacent to the 27-hole course, which will also be designed by Greg Norman and may be added in the year 2000.
Mr. Nassetta added, "The Naples area is one of the fastest growing and affluent regions in the United States and it continues to gain popularity for business relocation. The area's continued rapid demand growth for golf rounds and the existing hotel's turnaway demand make this an outstanding transaction for the company and its shareholders."
The new hotel will be designed so that the majority of the guestroom and public spaces are oriented to the golf course. There will be a 225-seat restaurant and a 25-seat lounge in addition to the lobby bar. Approximately 15,000 square feet of meeting space with a 6,500 square foot ballroom will be available. Other facilities include an outdoor pool, a health club, four tennis courts, and a children's play area. A golf clubhouse, which complements the hotel's architectural design, will be completed in mid-1999.
Host Marriott is a lodging real estate company which owns 101 upscale and luxury full-service hotels operated primarily under the Marriott and Ritz- Carlton brand names. Additionally, the company owns 31 senior living communities, all of which are operated by Marriott International. The company also serves as a general partner and holds minority interests in various unconsolidated partnerships which own 240 lodging properties, 20 of which are full-service hotels.
For further information on Host Marriott Corporation,
please visit its Web site at http://www.hostmarriott.com.
Certain matters within this news release are forward-looking statements
within the meaning of the Private Litigation Reform Act of 1995 and as
such may involve known and unknown risks, uncertainties, and other factors
which may cause the actual results, performance or achievements of Host
Marriott to be different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Although Host
Marriott 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. These risks are detailed from time to time
in the company's filings with the Securities and Exchange Commission.