MARRIOTT INTERNATIONAL ANNOUNCES SALE OF THE RITZ-CARLTON KAPALUA MARRIOTT INTERNATIONAL ANNOUNCES SALE OF THE RITZ-CARLTON KAPALUA HOTEL FOR $144 MILLION TO CAPITAL HOTEL INVESTMENTS LLC

Marriott International, Inc. (NYSE:MAR) has announced the sale of the Ritz-Carlton Kapalua (Maui, Hawaii) for approximately $144 million to Capital Hotel Investments LLC, a joint venture between Marriott International and affiliates of Blackacre Capital Management LLC. In September 2000, Marriott International acquired the Ritz-Carlton Kapalua (for a total cost of approximately $144 million) in expectation of subsequently selling the hotel and retaining a management agreement. Ritz-Carlton Hotel Company, an affiliate of Marriott International, will continue to operate the hotel as a Ritz-Carlton under a long-term management agreement. Capital Hotel Investments was advised by Credit Suisse First Boston Corporation in the transaction.

“We are pleased to complete this follow-on transaction with Blackacre, and we are excited about continuing to work together on future opportunities,” said Arne M. Sorenson, executive vice president and chief financial officer of Marriott International. “This acquisition brings the portfolio of Marriott-managed full-service properties owned by Capital Hotel Investments to six hotels with a total value in excess of $500 million. We are committed to working with Blackacre to expand the portfolio of hotels substantially above this level. Our strategic alliance with Blackacre should continue to create tremendous opportunities for both of our companies.”

Ron Kravit, managing director of Blackacre noted, “As we had anticipated, our venture with Marriott International is proving to be an excellent opportunity to work closely with a top notch, world-class operator of real estate assets with whom we continue to source a steady pipeline of attractive investment opportunities.”