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Exhibit 99.1
[LOGO]CRESTLINE PRESS RELEASE
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CAPITAL Immediate Release
Contacts: Heather Scanlon (240) 694-2067
Crestline Capital Corporation
Greg Larson (301) 380-2076
Host Marriott Corporation
HOST MARRIOTT AND CRESTLINE CAPITAL JOINTLY ANNOUNCE
EXECUTION OF A DEFINITIVE AGREEMENT FOR THE PURCHASE AND
SALE OF LESSEE ENTITIES
BETHESDA, MD, November 14, 2000 - Host Marriott Corporation (NYSE: HMT) and
Crestline Capital Corporation (NYSE: CLJ) today announced that they had reached
a definitive agreement for the purchase and sale of the entities owning the
lease rights to Host Marriott's portfolio of full-service hotels. The purchase
and sale transaction will generally transfer ownership of those lessee entities
currently owned by Crestline Capital to a subsidiary of Host Marriott for total
consideration of $205 million, the proceeds of which will be paid entirely in
cash.
Mr. Christopher J. Nassetta, Host Marriott president and chief executive
officer, stated, "The consummation of this transaction, which is permitted as a
result of the passage of the REIT Modernization Act, will simplify our corporate
structure and enable us to better control our portfolio of premier full-service
hotels. Further, the transaction is expected to be accretive to 2001 FFO per
share by $.06 to $.07."
Bruce D. Wardinski, Crestline Capital chairman of the board, president and
chief executive officer added, "While these leases have been profitable for
Crestline, they are more appropriately held by the owner of the hotel. The
final purchase price is consistent with our full-year 2000 estimated leakage,
which is lower than prior expectations."
Mr. Wardinski continued, "We will use the cash proceeds to continue
implementing our dual strategy of growing our hotel management business and
purchasing our stock. A significant portion of the proceeds from the transaction
will be deployed to fund a tender offer for our common stock in the first
quarter of 2001. Details on the tender offer will be announced in the coming
months."
-more-
6600 Rockledge Drive, Suite 600, Bethesda, Maryland 20817
240-694-2000 FAX 240-694-2099 www.crestlinecapital.com
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[LOGO]CRESTLINE
--------- PRESS RELEASE
CAPITAL
The transaction, which is subject to normal closing conditions, is expected
to close at the beginning of 2001. The REIT Modernization Act, which was passed
on December 17, 1999 and takes effect on January 1, 2001, in part allows lodging
REITs to lease their hotels to subsidiaries of the REIT.
About the companies
Host Marriott Corporation is a lodging real estate company which owns 122
upscale and luxury full-service hotel properties primarily operated under
Marriott, Ritz-Carlton, Four Seasons, Hyatt, Hilton and Swissotel brand names.
For further information on Host Marriott Corporation, please visit the Company's
website at www.hostmarriott.com.
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Crestline Capital Corporation, parent company of Crestline Hotels &
Resorts, is the nation's largest independent hotel leasing company, majority
owner of an upscale extended-stay hotel portfolio, and owner of one of the
nation's premier senior living community portfolios. Additional information
about Crestline Capital Corporation is available at the company's web site.
Note: Certain matters discussed herein are forward-looking statements within the
meaning of the Private Litigation Reform Act of 1995. Certain, but not
necessarily all, of such statements can be identified by the use of forward-
looking terminology, such as "believes," "expects," "may," "will," "should,"
"estimates" or "anticipates" or the negative thereof or comparable terminology.
All forward-looking statements involve known and unknown risks, uncertainties
and other factors, which may cause the actual transactions, results, performance
or achievements of Host Marriott or Crestline Capital to be materially different
from any future transactions, results, performance or achievements expressed or
implied by such forward-looking statements. These may include: (i) national and
local economic and business conditions or governmental regulations that will
affect demand, prices, wages or other costs for hotels and senior living
communities; (ii) the level of rates and occupancy that can be achieved by such
properties; (iii) the ability to compete effectively in areas such as access,
location, quality of properties and rate structures; (iv) the ability to
maintain the properties in a first-class manner (including meeting capital
expenditure requirements); (v) the availability and terms of financing; (vi)
governmental actions and initiatives including the REIT Modernization Act; and
(vii) changes to the public pay systems for medical care and the need for
compliance with environmental licensure and safety requirements. Although the
Companies believe the expectations reflected in such forward-looking statements
are based upon reasonable assumptions and business opportunities, they can give
no assurance that their expectations will be attained or that any deviations
will not be material. The Companies undertake no obligation to publicly release
the result of any revisions to these forward-looking statements that may be made
to reflect any future events or circumstances.
-more-
6600 Rockledge Drive, Suite 600, Bethesda, Maryland 20817
240-694-2000 FAX 240-694-2099 www.crestlinecapital.com
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