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Press Release: Host Hotels & Resorts, Inc.
May 23, 2006
BETHESDA, MD -- Host Hotels & Resorts, Inc. (NYSE: HST) yesterday announced that it has entered into an agreement
to acquire The Westin Kierland Resort & Spa in Scottsdale, Arizona, from The Kierland Resort Company, LLC,
a Delaware limited liability company comprising affiliates of Woodbine Development Corporation of Dallas, TX, the
Herberger Interests of Phoenix/Scottsdale, AZ, Cook Inlet Region, Inc., of Anchorage, AK, and Starwood Hotels &
Resorts Worldwide, Inc. of White Plains, NY. The resort, which opened in November 2002, is situated on 252 acres
of fee simple property and features 732 guestrooms, including 63 suites and 32 casita units, a 27-hole golf course
and a full-service spa. The hotel has approximately 70,000 square feet of indoor meeting space, including a 24,600-square
foot ballroom, and over 100,000 square feet of outdoor function space.
Christopher J. Nassetta, president and chief executive officer, stated, "We are thrilled to be acquiring this
recently-constructed, world-class asset in the Phoenix/Scottsdale market, which is a strong growth market in which
we have been seeking greater representation."
The purchase price is approximately $393 million and includes the assumption of $135 million of existing debt with
an interest rate of approximately 5.08%. The hotel's Earnings Before Interest Expense, Taxes, Depreciation and
Amortization (EBITDA) for the first 12 months of ownership is forecast to be approximately $32 million (EBITDA
equals forecasted GAAP operating profit of approximately $21 million plus depreciation expense of approximately
$11 million). The purchase is subject to customary closing conditions and is expected to close during the third
quarter of 2006.
Molinaro Koger represented the seller on this transaction.
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is a lodging real estate company that currently owns or holds controlling interests
in 129 luxury and upper upscale hotel properties primarily operated under premium brands such as Marriott®,
Westin®, Sheraton®, Ritz-Carlton®, Hyatt®, W®, Four Seasons®, St. Regis®, The Luxury
Collection®, Fairmont®, Hilton® and Swissotel®*. For further information please visit the Company's
website at http://www.hosthotels.com.
* This press release contains registered trademarks that are the exclusive property of their respective owners.
None of the owners of these trademarks has any responsibility or liability for any information contained in this
press release.
(Note: This press release contains forward-looking statements within the meaning of federal securities regulations.
These forward-looking statements are identified by their use of terms and phrases such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may,"
"plan," "predict," "project," "will," "continue" and other similar
terms and phrases, including references to assumption and forecasts of future results. Forward-looking statements
are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which
may cause the actual results to differ materially from those anticipated at the time the forward- looking statements
are made. These risks include, but are not limited to: national and local economic and business conditions, including
the potential for terrorist attacks, that will affect occupancy rates at our hotels and the demand for hotel products
and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness
and our ability to meet covenants in our debt agreements; relationships with property managers; our ability to
maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability
to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes
in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures
and costs; our ability to complete pending acquisitions and dispositions; and our ability to continue to satisfy
complex rules in order for us to qualify as a Real Estate Investment Trust for federal income tax purposes and
other risks and uncertainties associated with our business described in the Company's filings with the Securities
and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements
are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that
any deviation will not be material. All information in this release is as of May 22, 2006, and the Company undertakes
no obligation to update any forward-looking statement to conform the statement to actual results or changes in
the Company's expectations.)
Source: Host Hotels & Resorts, Inc.