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HOST MARRIOTT, MARRIOTT INTERNATIONAL TO CALL 'LYONS' IN JANUARY 1994

 WASHINGTON, Dec. 13 /PRNewswire/ -- Host Marriott Corporation (NYSE: HMT) and Marriott International, Inc. (NYSE: MAR) jointly announced today that they will redeem Marriott Liquid Yield Option Notes (LYONs) due 2006 on Jan. 25, 1994 for $367.60 per $1,000 principal amount.
 The accreted principal amount of the LYONs currently outstanding would total approximately $196.7 million at Jan. 25, 1994. Marriott International's share of this LYONs obligation would total $177.0 million, while Host Marriott's would total $19.7 million.
 The companies said the LYONs are convertible into common stock of Host Marriott and Marriott International at the rate of 13.277 shares of each company for each $1,000 principal amount of LYONs. Common shares of Host Marriott and Marriott International closed at $9.50 and $27.75, respectively -- or a combined $37.25 -- on the New York Stock Exchange on Friday, Dec. 10, 1993. At these closing market prices, each LYONs is convertible into shares of Marriott International and Host Marriott worth a combined value of $494.57. The combined conversion price per common share would be $27.41, based on the accreted value at Dec. 10.
 If the currently outstanding LYONs were converted, it would increase the shares outstanding for each company by approximately seven million. Each of the companies currently has approximately 119 million common shares outstanding.
 The LYONs obligation is shared by Marriott International and Host Marriott. Any redemption funding would be allocated 90 percent to Marriott International and 10 percent to Host Marriott, as agreed upon prior to split of the former Marriott Corporation into the two companies on Oct. 8, 1993.
 The original issue price of each Marriott Corporation LYON was $297.41 per $1,000 principal amount at maturity. These zero coupon subordinated notes, which were issued to yield 8.25 percent, became callable on June 12, 1993.
 The trustee for the LYONs is Chemical Bank. Information agent for the redemption is MacKenzie Partners, Inc.
 Marriott International, Inc. is a diversified company involved in lodging and services management. Host Marriott Corporation is involved in real estate ownership, and airport and tollroad concessions.
 -0- 12/13/93
 /CONTACT: Nick Hill of Marriott International, Inc. 301-380-7484/
 (MHS MAR HMT)


CO: Host Marriott Corporation; Marriott International, Inc.; Marriott
 Corporation ST: District of Columbia IN: LEI SU: FNC


KD-DS -- DC006 -- 2991 12/13/93 08:05 EST
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Publication:PR Newswire
Date:Dec 13, 1993
Words:392
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