Printer Friendly


 WASHINGTON, Oct. 8 /PRNewswire/ -- Marriott Corporation (NYSE: MHS) announced today that it has completed the special dividend, plans for which were first announced in October 1992, dividing Marriott into two companies.
 As a result of the special dividend, shareholders of record on Sept. 30, 1993, are receiving one share of Marriott International, Inc. (NYSE: MAR), a new lodging and services management company, for each common share they own in Marriott Corporation. Marriott Corporation has been renamed Host Marriott Corporation (NYSE: HMT). It owns hotels and retirement communities, and operates airport and tollroad concessions. Marriott International manages the hotels and retirement communities owned by Host Marriott, under long-term agreements.
 "Last year, we said the special dividend should enable shareholders to realize more quickly the inherent value of our management businesses, while allowing them to benefit over time from upturns in real estate values," said J.W. Marriott Jr., chairman and president of Marriott International. "That is happening. Yesterday's closing price for Marriott Corporation common stock was more than 90 percent above the pre-announcement price in October 1992, representing a gain of over $1.5 billion in market value," he noted.
 "The split of Marriott Corporation into two companies is a continuation of Marriott's longstanding strategy of separating ownership of properties from management of operations," said Stephen F. Bollenbach, president and chief executive officer of Host Marriott. "We see significant long-term value in Host Marriott's prime real estate holdings and in its leadership position in airport and tollroad concessions," Bollenbach observed.
 Mr. Marriott said Marriott International will be able to move aggressively to take advantage of opportunities in lodging and contract services.
 "We believe the split will unleash Marriott International's growth potential," he stated. "In lodging, we can grow through domestic and international development in the full-service segment, using management contracts that require relatively small amounts of capital investment for individual properties. We will also grow through increased use of franchising of our moderate price, economy and extended stay products; and by expansion of our timesharing business," Mr. Marriott said. He added that Marriott International's contract services businesses offer exciting potential for increasing their share of large, growing markets. These businesses provide food service and facilities management, operate retirement communities, and distribute food and related supplies.
 Bollenbach said Host Marriott's financial flexibility has been enhanced by the successful completion of an exchange offer for Marriott Corporation's publicly held notes and debentures. He reported that about $1.2 billion of the eligible series of securities were tendered and accepted under the exchange offer.
 Bollenbach explained that the new bonds of Host Marriott Hospitality (a Host Marriott subsidiary) issued in the exchange offer will mature in the years 1999 through 2011. He said the interest rates for the different series of new bonds range from 9-1/8 percent to 11-1/4 percent. In addition to completing the exchange offer, Host Marriott has called for redemption of the Series F bonds due 1995 that were not tendered in the exchange. The Series I bonds due 1995 that were not tendered will be secured equally with the new exchange bonds.
 Marriott International will have annual sales of over $8 billion. It has about 175,000 employees, with operations and franchises in 50 states and 24 countries. Host Marriott employs about 24,000 people, and will have annual sales of approximately $1.3 billion.
 Both Marriott International and Host Marriott are listed on the New York Stock Exchange. "Regular way" trading in the common stock of Marriott International (ticker symbol MAR) and Host Marriott (ticker symbol HMT) will begin on Tuesday, Oct. 12, 1993.
 Marriott International is one of two companies resulting from the split of Marriott Corporation on Oct. 8, 1993. Marriott International manages lodging and service businesses. It has about 175,000 employees, with operations or franchises in 50 states and 24 countries. It will have annual sales of approximately $8 billion.
 Marriott International owns the trademarks, trade names, reservation and franchise systems that were formerly owned by Marriott Corporation. The new company has two operating groups. Their divisions are leaders in their respective businesses and enjoy strong customer preference.
 The Lodging Group is composed of Marriott's four hotel management divisions: Marriott Hotels, Resorts and Suites, which now manages or franchises 246 full-service hotels (plus two managed hotels under construction); Courtyard, the company's moderate price lodging division (213 hotels); Residence Inn, the leader in the extended stay segment (213 inns); Fairfield Inn, Marriott's economy lodging division (126 inns). In total, the group manages or franchises 768 hotels with more than 170,000 rooms. Also included are Marriott Ownership Resorts, which operates 25 timesharing resorts, and Marriott Golf, which manages 19 golf facilities.
 The Service Group has three principal divisions: Marriott Management Services provides food and facilities management for business, education and health care clients, with nearly 3,000 accounts; Marriott Senior Living Services manages 16 retirement communities (plus two under construction) offering independent and assisted living for older Americans. Marriott Distribution Services provides food and related products to the company's operations and external clients through six distribution centers.
 J.W. Marriott Jr. is chairman, president and chief executive officer of Marriott International. William J. Shaw and William R. Tiefel are executive vice presidents of Marriott International. Shaw is president of the company's Service Group and Tiefel is president of its Lodging Group.
 Marriott International is listed on the New York Stock Exchange, under the ticker symbol MAR.
 Host Marriott Corporation (formerly Marriott Corporation), was renamed on Oct. 8, 1993, when Marriott Corporation split into two companies. Host Marriott focuses on two basic businesses -- real estate ownership and airport and tollroad concessions.
 Host Marriott has operations or properties in 34 states and six countries, with approximately 24,000 employees. Host Marriott will generate annual sales of approximately $1.3 billion, with significant operating cash flow.
 Host Marriott is the leading operator of airport and tollroad food, beverage and merchandise concessions, which were expanded by the acquisition of Dobbs' airport operations. It now serves 74 airports, primarily in the United States with some concessions in Australia and New Zealand. The company operates over 100 food and merchandise units on 14 U.S. tollroads. It also has concessions at 40 sports and entertainment attractions. Host Marriott is a licensee of 17 major nationally branded food and merchandise concepts.
 The company owns 139 Marriott lodging properties and 14 retirement communities (including two hotels and two retirement communities now under construction), located in 31 states and four countries, which are managed under long-term agreements with Marriott International, Inc. Host Marriott or its subsidiaries act as general or limited partners in a number of Marriott lodging partnerships, and own a number of undeveloped parcels of land.
 Host Marriott's lodging portfolio includes 26 full-service hotels, among them the San Francisco Marriott and the New York Marriott Marquis (a significant equity interest); 54 Courtyard hotels (moderate price segment); 29 Residence Inn properties (extended stay segment); and 30 Fairfield Inn properties (economy segment).
 Richard E. Marriott is chairman of Host Marriott. Stephen F. Bollenbach is president and chief executive officer. Host Marriott is listed on the New York Stock Exchange, under the ticker symbol HMT.
 -0- 10/8/93
 /CONTACT: Robert Souers of Marriott Corporation, 301-380-1339/

CO: Marriott Corporation ST: District of Columbia IN: FIN SU: DIV RCN

MH -- DC027 -- 0196 10/08/93 13:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 8, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters