MARRIOTT INTERNATIONAL COMPLETES PURCHASE OF HAWAIIAN REGENT HOTEL

Property to Be Rebranded as the Waikiki Beach Marriott Resort

Marriott International (NYSE:MAR) completed purchase of the 1,304-room Hawaiian Regent Hotel in Waikiki. Purchase price was US$125.5 million. The property will be rebranded as the Waikiki Beach Marriott Resort. Marriott has plans to eventually sell the hotel and take back a long-term management contract.

Located on Kalakaua Avenue across from Waikiki Beach on land owned by the Queen Liliuokalani Trust, the Hawaiian Regent is the third largest hotel on Oahu. Opened in 1971, it has been owned and managed by Honolulu-based Otaka L.P. since 1986.

“The Hawaiian Regent is a choice Waikiki property that represents an excellent strategic acquisition for Marriott,” said Ed Fuller, president and managing director of international lodging for Marriott International. “The Waikiki Beach Marriott Resort will become our signature hotel on Hawaii’s most famous beach and will anchor Marriott’s growing presence in the Hawaiian Islands.”

Marriott has rehired all of the 516 hourly employees and retained most of the management staff employed by the hotel.

“We have found the perfect Waikiki property to bear the Marriott brand,” said Stan Brown, Marriott’s vice president - Pacific Islands and general manager of the Kauai Marriott Resort & Beach Club. “It is a major beachfront property on Kalakaua Avenue in an area that is leading the revitalization of Waikiki.”

Marriott will undertake substantial renovations over the next two years to upgrade the landmark hotel, which presently has seven meeting rooms, two swimming pools, a business center, a fitness center and popular dining and entertainment venues in two adjoining high-rise towers.

“We will bring major impetus to the renewal of Waikiki by restoring this property to a distinctive, upscale, full-service resort hotel, supported by the traditions of quality, guest service and value that have become a hallmark of the Marriott name,” said Mr. Brown.

He noted that the Waikiki Beach Marriott Resort and the 782-room Renaissance Ilikai Hotel -- its sister property at the other end of Waikiki -- will give Marriott a combined 2,000 guest rooms on Waikiki.

“The two properties complement each other,” he said. “The Waikiki Beach Marriott Resort concentrates on the tour and travel market while the Renaissance Ilikai Hotel adds a dimension of corporate and convention business.”

According to Mr. Brown, the two properties are well situated to serve both westbound and eastbound travelers.

“Marriott has more than doubled its presence in Hawaii over the past year,” said Mr. Fuller. “Our sales and marketing programs have been effective in building high occupancies and consumer demand for our Hawaiian properties. We are very committed to the Hawaiian Islands and it is our goal to introduce more Marriott brands to the state.”

Marriott International’s other Oahu property is the 387-room JW Marriott Ihilani Resort and Spa at Ko Olina, which offers a neighbor island-style resort experience, including the Ko Olina Golf Club which is operated by Marriott Golf.

On the neighboring islands, Marriott International operates the 356-room Kauai Marriott Resort and Beach Club, the 604-room Maui Marriott Resort and Ocean Club, the 345-room Renaissance Wailea Beach Resort on Maui, as well as the 549-room Ritz-Carlton Kapalua on Maui, which is operated by The Ritz-Carlton Hotel Company L.L.C., a separate business unit of Marriott International.

Marriott Vacation Club International (MVCI), the vacation ownership division of Marriott International, offers vacation ownership opportunities at the Kauai Marriott and the Maui Marriott. In addition, MVCI will begin construction in 2001 of the 750-unit Ko Olina Ocean Club on Oahu and Marriott’s 227-unit Waiohai Beach Club at Poipu on Kauai.