Host Hotels' Profit More Than Doubles

Host Hotels & Resorts, Inc. Reports Outstanding Operating Results for the Fourth Quarter and Full Ye

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. October 14, 2008

FEBRUARY 21, 2007. Host Hotels & Resorts, Inc. (NYSE:HST) , the nation's largest lodging real estate investment trust, today announced its results of operations for the fourth quarter and for the year ended December 31, 2006.

o Total revenue increased 41%, to $1,734 million, for the fourth quarter and nearly 30%, to $4,888 million, for full year 2006, which includes $366 million and $762 million of revenues for the fourth quarter and full year 2006, respectively, for the Starwood portfolio acquired in April 2006. Excluding the revenues from the Starwood portfolio, revenues increased 11.2% and 9.6% for the fourth quarter and full year, respectively.

o Net income increased $122 million to $196 million for the fourth quarter and $572 million to $738 million for full year 2006. Earnings per diluted share increased $.17 to $.36 for the fourth quarter and $1.10 to $1.48 for full year 2006.

o Net income includes a net gain of $8 million, or $.01 per diluted share, for the fourth quarter, and $355 million, or $.73 per diluted share, for the full year from the following: gains on asset dispositions, costs associated with the refinancing of senior notes and the redemption of preferred stock and non-recurring costs associated with the Starwood acquisition. By comparison, for fourth quarter and full year 2005, net income included a net gain of $7 million, or $.02 per diluted share, and $21 million, or $.06 per diluted share, respectively, associated with similar transactions in 2005.

o Funds from Operations (FFO) per diluted share increased nearly 32%, to $.58, for the fourth quarter and 33%, to $1.53, for full year 2006. FFO per diluted share was reduced by $.03 and $.09 for the fourth quarter and full year 2006, respectively, due to costs associated with refinancing of senior notes, the redemption of preferred stock and non- recurring costs associated with the Starwood acquisition. By comparison, FFO per diluted share was reduced by $.08 for full year 2005 due to costs associated with similar transactions in 2005.

The Company also announced the following results for Host Hotels & Resorts, L.P. through which it conducts all of its operations and holds 96.5% of the partnership interests:

o Net income increased $128 million to $204 million for the fourth quarter and $596 million to $769 million for full year 2006. Net income of Host LP was also affected by certain transactions-See "Schedule of Significant Transactions Affecting Earnings per Share and Funds From Operations Per Diluted Share."

o Adjusted EBITDA, which is Earnings before Interest Expense, Income Taxes, Depreciation, Amortization and other items, increased 50%, to $471 million, for the fourth quarter and nearly 39%, to $1,283 million, for full year 2006 primarily due to growth in EBITDA from the Company's comparable hotel portfolio and EBITDA generated by the Starwood portfolio.