|BETHESDA, Md., Sept. 9, 1998 - Host Marriott Corporation
(NYSE: HMT) announced it has completed the acquisition of the 336-room
Ritz-Carlton, San Francisco. The partnership owning the hotel was purchased
for $161 million. The Earnings Before Interest Expense, Taxes, Depreciation,
Amortization and other non-cash items (EBITDA) from the hotel is projected
to be $18.6 million in 1999.
Mr. Terence C. Golden, president and chief executive officer, stated, "The Ritz-Carlton, San Francisco is one of the highest quality hotels in America and we are delighted to add it to our distinctive portfolio of assets. Due to the unique character of the building, its superior quality, its prominent location on Nob Hill near the heart of the City's financial district and the limited number of competitive five star hotels in the fast growing San Francisco market, we anticipate continued strong performance from the Ritz-Carlton, San Francisco, one of America's irreplaceable hotel assets."
Mr. Golden continued with, "As evidenced by the purchase price of the Ritz-Carlton, San Francisco, acquisition pricing for quality hotels has become more attractive. The recent downturn in the stock market and the reduction in capital available to the real estate industry have had a favorable effect on hotel prices, improving yields to much more attractive levels. This acquisition also demonstrates Host Marriott's commitment to its shareholders by consistently delivering the highest quality assets with superior yields in difficult to replace locations."
The hotel, which opened in 1991, was a total redevelopment of the Metropolitan Life Insurance western headquarters building, a landmark office building that was originally constructed in 1909. As a result, the hotel has a unique combination of a turn of the century appearance and ambiance similar to the grand hotels of the city, and state of the art facilities. The Ritz-Carlton, San Francisco, which is a recipient of the AAA Five-Diamond and Mobil Five Star Awards, has two restaurants, including a fine dining room, three lounges, approximately 14,400 square feet of meeting space including a 9,500 square-foot ballroom, a full-service fitness center, an indoor pool and features an outside courtyard for dining and special functions.
Mr. Christopher J. Nassetta, executive vice president and chief operating officer added, "The San Francisco lodging market is one of the strongest in the United States and has limited new hotel development. Host Marriott is well positioned to take advantage of this market's positive attributes by owning the 285-room San Francisco Marriott Fisherman's Wharf, the 1,500-room San Francisco Marriott at the Moscone Convention Center, the 684-room San Francisco Airport Marriott and now the Ritz-Carlton, San Francisco."
Host Marriott is a lodging real estate company which owns 104 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.
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.
||The 308 room Ritz-Carlton Dearborn, MI Sold for $65 Million to Host Marriott Corp. / Aug 1998|
|Host Marriott Announces Intention to Expand the Ritz-Carlton, Naples / July 1998|