Host Marriott Issues $725 Million Notes

Global Finance, Dec 2003 by Platt, Gordon

Host Marriott, a Maryland-based real estate investment trust, plaeed $725 million of 7.125% senior notes due 2013 with qualified institutional buyers.

The notes, which were increased from an originally proposed $500 million, generally may not be redeemed prior to 2008.

The company will use the proceeds to prepay its 7.785% senior notes due 2005, as well as a portion of its 8.45% notes due 2008.

Host Marriott owns high-end and luxury hotels, which are operated mainly under the Marriott and Ritz-Carlton brands. It recently agreed to purchase the Hyatt Regency Maui Resort and Spa in Hawaii from Blackstone Real Estate Advisors for $321 million. Host Marriott says it will pay for the oceanfront hotel in part with the proceeds of a recent equity offering.

-Gordon Platt