Exhibit 99.1
HOST MARRIOTT REPORTS 42%
INCREASE IN 1996 EBITDA
BETHESDA, MD -- February 3, 1997 -- At an investor conference today, Host
Marriott reported preliminary 1996 Earnings Before Interest Expense, Taxes,
Depreciation and Amortization, and other non-cash items ("EBITDA") of
approximately $442 million, a 42% increase over its 1995 full year results of
$311 million. Revenues for the year are expected to increase by approximately
51% to $732 million from $484 million in 1995.
Host Marriott reported that full service hotel EBITDA for the year will increase
to $415 million, a 68% improvement from $247 million in 1995. The full service
hotel EBITDA increase in 1996 is attributable primarily to a 19% increase in
comparable hotel EBITDA on an 11% increase in room revenue per available room
(REVPAR), as well as incremental EBITDA generated by the company's 1996 and 1995
hotel acquisitions. For the 1996 fourth quarter, the company also reported that
comparable hotel EBITDA increased 21% on a 10% increase in REVPAR over the 1995
fourth quarter. Full year and fourth quarter results for 1996 also include 53
and 17 weeks, respectively, versus 52 and 16 weeks, respectively, included in
the comparable 1995 periods.
Terence C. Golden, president and chief executive officer of Host Marriott, said
"We are extraordinarily pleased with the financial results we are seeing for
1996. The growth in hotel EBITDA reflects the impact of our 1995 and 1996 hotel
acquisitions and the continuing strength of the full service sector of the hotel
industry in which we are focused."
Mr. Golden continued, "Through our aggressive acquisition program, Host Marriott
was able to acquire, or purchase controlling interest in, 23 hotels (10,881
rooms) in 1996 with an aggregate value of approximately $1.5 billion. We have
already acquired, or purchased controlling interest in, three additional hotels
(2,433 rooms) in 1997 with an aggregate value of approximately $380 million.
These exceptional assets, many of which have been included in affiliated
partnerships, include some of the nations premier Marriott convention and resort
facilities, as well as four Ritz-Carlton luxury properties."
Mr. Golden added, "Host Marriott is well positioned to experience continued
growth as the full impact of these high quality properties is realized. With a
1997 acquisition target of over $1 billion, we expect to be able to continue to
add high quality full service hotels to our portfolio at attractive returns
throughout 1997."
The company stated that it will report fiscal year 1996 comprehensive results of
operations in early March.
Host Marriott is a lodging real estate company which currently owns or holds
controlling interests in 82 upscale and luxury full service hotel properties
operated primarily under the Marriott and Ritz-Carlton brand names. The company
also serves as general partner and holds minority interests in various
unconsolidated partnerships that own 251 lodging properties, 31 of which are
full service hotels.
Certain matters discussed 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.
--Table follows--
HOST MARRIOTT CORPORATION
CONSOLIDATED FINANCIAL DATA
(unaudited, in millions)
Seventeen Sixteen
Weeks Ended Weeks Ended Year Ended
----------- ----------- ----------
January 3, 1997 December 29, 1995 Jan. 3, 1997 Dec. 29, 1995
--------------- ----------------- ------------ -------------
Revenues................................ $ 268 $ 165 $ 732 $ 484
Hotel EBITDA............................ 162 101 439 320
Total EBITDA............................ 159 99 442 311
EBITDA to Cash
Interest Expense...................... 2.0X 1.8X
Comparable Full-Service Hotel Statistics
Room Rate Increase...................... 7% 8%
Occupancy Increase...................... One percentage point Two percentage points
REVPAR Increase......................... 10% 11%
EBITDA Increase......................... 21% 19%