Host Marriott Cuts Starwood Hotels From Deal
WASHINGTON, DC, March 29, 2006. Host Marriott Corp. said it had changed a deal that had originally called for it to buy 38 hotels from Starwood Hotels and Resorts Worldwide Inc. to exclude three hotels in Canada.
Host Marriott said that as a result, the overall purchase price for the transaction -- scheduled to close on April 10 -- has been reduced by about $276 million to $3.76 billion.
The three Canadian hotels will be left out of the deal because Starwood was unable to obtain a necessary tax ruling, Host Marriott told Reuters news agency.
As a result, Host Marriott's estimated earnings before interest, taxes, depreciation and amortization for 2006 will be reduced by about $20 million, the company said.