BETHESDA, Md., May 04, 2017 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NYSE:HST) (the “Company”) has learned that certain
affiliates of MacKenzie Capital Management, LP (“Purchaser”) made an unsolicited “mini tender” offer for up to 240,000 operating
partnership units (“OP Units”) of Host Hotels & Resorts, L.P. (“Host L.P.”) at a price of $14.71 per OP Unit less cash
distributions made by Host L.P. after March 31, 2017 (the “MacKenzie Offer”). This follows several earlier “mini tender”
offers by the Purchaser launched in 2016 and 2017. Neither the Company nor Host L.P. are in any way associated with the
MacKenzie Offer, and holders of OP Units are under no obligation to take any action with respect to the MacKenzie Offer.
Mini-tender offers seek less than 5 percent of a company’s outstanding equity. This allows the offering company
to avoid many of the United States Securities and Exchange Commission (the “SEC”) disclosure and procedural requirements for tender
offers. The SEC’s guidance to investors on “mini tender” offers is available at www.sec.gov/investor/pubs/minitend.htm. This guidance advises that mini-tender offers “have been
increasingly used to catch investors off guard” and that investors “may end up selling their securities at below-market
prices.”
After careful evaluation of the MacKenzie Offer, the Company and Host L.P. recommend that the holders of OP
Units reject this unsolicited offer. In making this recommendation, the Company primarily considered that the offer price in
the MacKenzie Offer is below the $18.05 per share closing stock price of the Company’s common stock on May 1, 2017. Further,
the $14.71 per OP Unit price in the MacKenzie Offer is reduced by the April 17, 2017 distribution of approximately $0.20 per OP
Unit. Although there is no trading market for the OP Units themselves, at any time holders of OP Units may request that the
Company redeem their OP Units and the Company, in its discretion, may either redeem the OP Units for cash or, in the alternative,
issue 1.021494 shares of the Company’s common stock in exchange for each OP Unit, which shares may then be sold. Based on the
closing price of the Company’s common stock on May 1, 2017 of $18.05, an OP Unitholder would receive shares with a market value of
approximately $18.44 compared to the cash MacKenzie Offer of approximately $14.51 after deduction for post March 31, 2017 cash
distributions.
The Purchaser has made many similar unsolicited mini-tender offers for equity of other companies and three
earlier unsolicited mini-tender offers to holders of Host L.P. units at a similar discount to current market value. Like its other
offers, this offer puts individual investors at risk because they may not realize they are selling their OP Units at a discount.
The Company urges investors to get current quotes for the Company’s common stock for which their OP Units may be redeemed, consult
their financial advisors and exercise caution with respect to the MacKenzie Offer. The Company recommends that OP Unitholders who
have not responded to the Purchaser’s offer take no action. The Company encourages brokers and dealers, as well as other market
participants, to review the SEC’s letter regarding broker-dealer mini-tender offer dissemination and disclosure at:
http://www.sec.gov/divisions/marketreg/minitenders/sia072401.htm
Holders of OP Units should consult with their personal financial advisor or other legal, tax or investment
professional(s) regarding any questions they may have.
The Company requests that a copy of this press release be included with all distributions of materials related
to the MacKenzie Offer.
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is an S&P 500 and Fortune 500 company and is the largest lodging real
estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns
89 properties in the United States and 7 properties internationally totaling approximately 53,500 rooms. The Company also
holds non-controlling interests in seven joint ventures, including one in Europe that owns 10 hotels with approximately 3,900
rooms. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium
brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St.
Regis®, Le Meridien®, The Luxury Collection®, Hyatt®, Fairmont®,
Hilton®, Swissôtel®, ibis®, Pullman®, and Novotel® as well as independent
brands in the operation of properties in over 50 major markets worldwide. For additional information, please visit the Company's
website at www.hosthotels.com.
This press release contains registered trademarks that are the exclusive property of their respective owners.
None of the owners of these trademarks has any responsibility or liability for any information contained in this press
release.
Gregory J. Larson Executive Vice President 240.744.5120 Bret D.S. McLeod Senior Vice President 240.744.5216 Gee Lingberg Vice President 240.744.5275
