Exhibit 99.1

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                             DESERT SPRINGS MARRIOTT
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                               LIMITED PARTNERSHIP

                         1998 First Quarter Report
                      Limited Partner Quarterly Update


Presented  for your review is the first  quarter 1998 Report for Desert  Springs
Marriott  Limited  Partnership.  As  reported  in the 1997  Annual  Report,  the
Partnership files the Form 10-Q with the Securities and Exchange Commission (the
"SEC") each quarter.  The 1998 first quarter Form 10-Q immediately  follows this
letter  and  replaces  the  quarterly  report  format  previously  used  by  the
Partnership.   The  information   presented  is  essentially  the  same  as  the
information  given in prior years with certain  additional items required by the
SEC's rules. Discussion of the Partnership's performance and Hotel operations is
included in Item 2, Management's  Discussion and Analysis of Financial Condition
and  Results  of  Operations.  As in the past,  we  encourage  you to review the
information  contained in this report in its  entirety.  If you have any further
questions  regarding  your  investment,  please  contact Host Marriott  Investor
Relations at (301) 380-2070.

Partnership Cash Distributions

For 1997, the Partnership made a cash distribution in May 1998 of $2,500 per
limited partner unit. The distribution was made entirely from 1997 cash from 
operations.

The 1998 third quarter update, to be mailed in November,  will inform you of our
expectations for any distributions that can be made from 1998 operations.  It is
too early in the operating year to make such a  determination  at this time. Any
distribution would be made at approximately this time next year, pursuant to the
terms of the new financing agreement.

Host Marriott Corporation Real Estate Investment Trust

On April 17, 1998, Host Marriott  Corporation ("Host  Marriott"),  the parent of
the General  Partner of the  Partnership,  announced that its Board of Directors
has authorized the company to reorganize its business operations to qualify as a
real estate investment trust ("REIT") to become effective as of January 1, 1999.
As part of the REIT  conversion,  Host Marriott  expects to form a new operating
partnership (the "Operating  Partnership")  and limited partners in certain Host
Marriott  full-service  hotel  partnerships  and joint  ventures,  including the
Partnership,  are  expected  to  be  given  an  opportunity  to  receive,  on  a
tax-deferred basis, Operating Partnership units in the new Operating Partnership
in exchange for their current partnership interest. We will keep you informed on
the status of this matter.