BETHESDA, MD Host Marriott Corp. and Crestline Capital Corp. have reached a definitive agreement for the purchase and sale of the entities owning the lease rights to Host Marriott s portfolio of full-service hotels. The purchase and sale transaction will transfer ownership of those lessee entities currently owned by Crestline Capital to a subsidiary of Host Marriott for a total consideration of $205 million, the proceeds of which will be paid entirely in cash.
Crestline will use the cash proceeds to continue implementing a dual strategy of growing its hotel management business and purchasing stock. A significant portion of the proceeds from the transaction will be deployed to fund a tender offer for common stock in the first quarter of 2001. The transaction is expected to close at the beginning of 2001. (11/14/00)