"The consummation of this transaction, which is permitted as aresult of the passage of the REIT Modernization Act, will simplifyour corporate structure and enable us to better control ourportfolio of premier full-service hotels," says Christopher J.Nassetta, Host Marriott president and CEO. "The transaction isexpected to be accretive to 2001 FFO per share by $0.06 to$0.07."

The REIT Modernization Act, which passed on Dec. 17, 1999 andtakes effect on Jan. 1, 2001, in part, allows lodging REITs tolease their hotels to subsidiaries of the REIT.

Bruce D. Wardinski, Crestline Capital chairman of the board,president and CEO says, "While these leases have been profitablefor Crestline, they are more appropriately held by the owner of thehotel. The final purchase price is consistent with our full-year2000 estimated leakage, which is lower than priorexpectations."