Date: Fri, 19 Dec 1997 02:00:02 GMT Server: NCSA/1.5.2 Last-modified: Tue, 30 Sep 1997 19:38:11 GMT Content-type: text/html Content-length: 10645 Company Overview




Company

Marriott's Orlando World Center
Marriott's Orlando World Center, Orlando, Florida
Host Marriott, with over $6.3 billion in total assets, is one of the world's largest owners of lodging properties. As of October 1, 1997, it owned or held controlling interests in 94 hotels in the quality and luxury tiers, and was general partner holding minority interest in 23 unconsolidated lodging partnerships which own 244 additional hotels, including 24 full service properties. Host Marriott also owns a portfolio of 29 premier retirement communities, making it one of the largest owners of senior living facilities in the United States.

The company traces its heritage to the A&W root beer stand founded by the late J. Willard Marriott in 1927, which eventually grew into Marriott Corporation, a worldwide leader in hospitality (click here for time line). In 1993, Marriott Corporation split its operations into two separate, publicly held companies: Host Marriott Corporation, an owner of lodging real estate, and Marriott International, Inc., a manager of lodging and contract service businesses.

Since the beginning of 1994, Host Marriott has added 65 full service hotels representing nearly 30,000 rooms to its portfolio for an aggregate purchase price of $3.2 billion. In 1996, its full service hotels had average occupancy of 77.3% versus the industry average of 71.1% for the segment.

Such acquisitions are a key component in Host Marriott's growth strategy of acquiring high quality, full service hotels with the potential for significant capital appreciation. With attractive full service lodging properties still available at less than replacement cost, the company plans to acquire additional non-Marriott brand hotels from "inadvertent owners," domestic and international financial institutions, independent owners and franchisees of other major brands. Properties will be converted to either the Marriott or Ritz-Carlton brands. While emphasis will continue to be on the U.S. market, international acquisition efforts are increasing. The company also will continue to expand its portfolio of quality long-term care facilities for seniors through the acquisition of existing properties and the development of new communities.

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