BETHESDA, Md. -- Host Marriott Corp. agreed to acquire real estate
interests in 13 luxury hotels from the Blackstone Group, a New
York-based investment bank.
The deal, valued at $1.77 billion, will give Host Marriott
controlling interest in the following properties:
Two Ritz-Carltons (Amelia Island, Fla., and Boston).Three Hyatt Regency hotels (Cambridge, Mass.; Reston, Va., and
San Francisco Airport).The Grand Hyatt in Atlanta.Three Four Seasons (in Atlanta, Philadelphia and Beverly Hills,
Calif.).Four Swissotels (in New York, Chicago, Boston and
Atlanta).The hotels will retain their flags, a Host Marriott spokesman
said, as the company's strategy is to own hotel real estate across
many brands.
Host Marriott said it also will acquire a 25% interest in
Swissotel's U.S. management company. In exchange, Blackstone will
acquire a 19% stake in Host Marriott.
Host Marriott plans to reorganize into a real estate investment
trust on Jan. 1, 1999.