Host Marriott plans $100 to $250 million of hotel sales to repay debt

New York, Oct. 17 - Host Marriott Corp. said it plans to raise $100 to $250 million over the next six to nine months by selling hotels, with proceeds going to reduce debt.

The Bethesda, Md. hotel operator said that it has already sold four hotels located in secondary markets during 2003 and is continuing to look for opportunities to sell non-core assets. The company is focusing on upper-upscale and luxury properties in urban, convention and resort markets.

Since the end of the quarter on Sept. 12, agreements have been signed to sell or exchange two more properties for approximately $50 million, Host Marriott said in a filing with the Securities and Exchange Commission.

Discussions are currently under way with potential buyers for "several" other hotels.

"Similar to the hotels already sold in 2003, the hotels currently under contract for sale or exchange and those identified as potential sale or exchange candidates are generally smaller hotels in secondary markets," Host Marriott added.

While the company intends to use proceeds to repay debt, it said it may choose to invest in its existing portfolio or acquire additional hotels.

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