Host Marriott to redeem $136 million 7 7/8% notes

By Jennifer Chiou

New York, March 30 - Host Marriott Corp. announced it intends to redeem its $136 million of 7 7/8% series B senior notes due 2008.

The company intends to do so by Sept. 30, using the proceeds from its sale of $800 million of 6¾% series P senior notes due 2016.

The Bethesda, Md.-based real estate investment trust said remaining proceeds from the new bonds will be used to help fund its pending acquisition of a portfolio of hotels from Starwood Hotels & Resorts Worldwide, Inc. and for general corporate purposes.

The company added that if it does not complete its purchase of the Starwood portfolio, it will use the remaining proceeds for the redemption of up to $400 million of its 10% class C cumulative redeemable preferred stock.

Host Marriott is focused on owning and operating hotel properties.

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