Host Marriott Obtaining $1.7B Loan for Starwood Portfolio Purchase
BETHESDA, MD, February 28, 2006. According to a U.S. Securities and Exchange Commission regulatory filing, Host Marriott Corp. will receive a $1.7-billion bridge loan that will help finance its planned $4-billion purchase of 38 hotels from Starwood Hotels & Resorts Worldwide, Inc.
The loan, which is being arranged by Goldman Sachs Group, Deutsche Bank, Bank of America and Merrill Lynch, will mature in 12 months and includes two, six-month extension options. Host Marriott will pay interest on the loan at two percentage points to 4.25% above the London interbank offered rate, according to the regulatory filing.
Meanwhile, Host Marriott has also sold off the 248-room Chicago Marriott Suites in Deerfield, IL, to a joint venture between AEW Capital Management, L.P. and Dow Hotel Co.
The Plasencia Group, Inc. advised Host Marriott in the deal. The AEW-Dow joint venture plans on renovating the property at a cost of more than $5 million.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
