On the whole, the year 2004 proved to be more successful than 2003 with a total revenue of about $3.6 million, compared to just under $3.3 million in 2003. More specific details highlight Host Marriott's success during the last three months of 2004. Revenue per available room, or RevPAR, in the fourth quarter jumped by 8.6% from the fourth quarter of the previous year, and comparable hotel adjusted operating profit margins grew by two percentage points.

"In 2004, we continued to increase our financial flexibility, improve our interest coverages and strengthen our balance sheet," Host Marriott executive vice president and CFO W. Edward Walter explains. "Our annual interest obligations decreased approximately $54 million due to our 2004 financing activities and we decreased our weighted average interest rate by approximately 65 basis points. With our significant available cash and the additional flexibility and capacity of our credit facility, we are well positioned to take advantage of opportunities that may arise in the future." When calculated at the end of 2004, the cash holdings and cash equivalents of the company totaled $347 million; while Host Marriott's credit facility totaled $575 million.

With a solid year behind them, the future, Host Marriott officials say, is looking bright. "We are very optimistic about our prospects for 2005," says Christopher J. Nassetta, company president and CEO. "We believe that the combination of our strategic vision and disciplined approach to capital allocation will continue to result in increasing stockholder value now and in the future."