Mayor Announces Marriott Will Open Residence Inn In Philadelphia Site Restored By G. Holdings

Construction of New Hotel Continues the Revitalization of Downtown Convention Center Area

Company Press Release: Marriott International, Inc.
June 7, 2000
PHILADELPHIA, PA -- Mayor John F. Street, G. Holdings Chief Executive Harry Gross and James Sullivan, executive vice president of development for Marriott International, Inc. (NYSE: MAR) yesterday announced construction will begin on a new, $50 million Residence Inn by Marriott at One East Penn Square. Adjacent to City Hall and the Philadelphia Convention Center, the renovation of the 70-year-old building housing the 25-floor hotel begins immediately with a targeted opening in fall of 2001.

Restoration of the beautiful Art Deco building, largely abandoned for almost 10 years, is the final piece in the redevelopment of the Penn Square buildings surrounding City Hall.

The new hotel will create more than 300 construction jobs and more than 170 permanent jobs. There are seven Marriott hotels, including three full- service hotels, in the city of Philadelphia.

``The new Residence Inn hotel will put people to work and stimulate economic vitality long past the physical construction of the facility,'' said Mayor Street. ``We welcome Harry Gross to Philadelphia and we thank Marriott for its continuing investment in our City.''

``We are honored to help fit the final jewel into this beautiful necklace of buildings around City Hall. This development also complements Marriott's presence in the area including the Philadelphia Marriott Hotel and the new Courtyard, which opened last year. With the opening of this property in 2001, Residence Inn will offer an extended-stay choice in a vibrant Center City location, close to the new Convention Center,'' said Harry Gross.

The franchisee and developer of the hotel is Granite Penn Square, LLC, a member of G. Holdings Group of companies, which is owned by Mr. Gross, a long- time businessman and real estate developer. Marriott International will manage the new Residence Inn.

The hotel will have 270 extended-stay rooms ranging from studios to one- and two-bedroom suites. Each guest suite comes complete with a fully equipped kitchen including full-sized appliances, coffee maker, and microwave oven. For guests requiring accommodations of five nights or more, the hotel's residential and home-like setting provides a comfortable and flexible environment.

The property also will offer 3,960 square feet of meeting space, an exercise room, a pool and a 108-seat hearthroom and a 72-seat lounge. Other available amenities include daily housekeeping, valet parking, complimentary grocery shopping services, same-day dry-cleaning, on-site faxing, copying, printing services and an in-room modem line.

Prominent Philadelphia business and public sector officials joined the announcement and watched as Mayor Street, Gross and Sullivan donned hard hats and used jackhammers to break concrete at the site.

One East Penn Square was designed by Verus Ritter and Howell Shay and opened in 1930 as the Market Street National Bank Building.

G. Holdings is a real estate development company headquartered in New York City. It was founded in 1977 by Gross and has been active in the acquisition, development, management and trading of businesses and real estate nationally and internationally. The company opened the 244-room Courtyard by Marriott - Times Square South in December 1998 in New York City. Construction is underway on a new Courtyard by Marriott at John F. Kennedy Airport in Queens, New York.

Residence Inn, the leader in extended-stay lodging, has more than 330 hotels in 43 states, the District of Columbia and six locations outside the United States, including five Canadian hotels and one in Mexico. Residence Inn is a participant in the Marriott Rewards frequent travel program that enables guests to earn and redeem points at nearly 2,000 Marriott lodging properties.

Note: MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading worldwide hospitality company with over 2,000 operating units in the United States and 57 other countries and territories. Marriott Lodging operates and franchises hotels under the Marriott, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names; develops and operates vacation ownership resorts under the Marriott, Ritz- Carlton and Horizons brands; operates Marriott Executive Apartments; provides furnished corporate housing through its ExecuStay by Marriott division; and operates conference centers. Other Marriott businesses include senior living communities and services, wholesale food distribution, procurement services, and The Ritz-Carlton Hotel Company LLC. The company is headquartered in Washington, D.C., and has approximately 145,000 employees. In fiscal year 1999, Marriott International reported systemwide sales of $17.7 billion.

SOURCE: Marriott International, Inc.