Marriott Completes Acquistion of ExecuStay

WASHINGTON (March 29, 1999) -- Marriott International, Inc. announced that it has completed the acquisition of ExecuStay Corporation, a leading provider of leased corporate apartments in the U.S. Marriott has officially renamed the business, ExecuStay by Marriott, and is the first hospitality management company to enter the estimated $3 billion corporate housing services industry.

In connection with the acquisition, Marriott paid approximately $52.9 million in cash and issued approximately 2.1 million shares of Marriott common stock to ExecuStay stock and option holders. Marriott also assumed approximately $13.5 million in debt, net of existing assets. Marriott International expects the acquisition to be neutral to earnings per share in 1999, and accretive thereafter.

ExecuStay by Marriott is a strong extension to the company's lodging portfolio and offers a wide range of customized apartment accommodations for long term stays of 30 days or more. With over 6,000 units in 44 states and the District of Columbia, ExecuStay provides "one-stop shopping" for fully furnished and accessorized apartments which include all utilities, phone, cable TV and maid service. ExecuStay owns no residential real estate and provides corporate apartments through short-term lease arrangements between ExecuStay and a network of unaffiliated property owners and managers. ExecuStay can locate and furnish a corporate residence within 24 hours notice. Rental periods average one to three months at a rate of approximately $2,200 per month.

Included as a product offering of ExecuStay by Marriott is Marriott International's residential and commercial apartment cleaning business, HomeSolutions by Marriott. This combination of businesses positions Marriott as a leader in a growing, but fragmented industry composed mainly of unbranded companies with the top four representing just 20 percent of the market.

Founded in 1986, ExecuStay operates 32 offices throughout the U.S. with a total of 525 employees, and currently generates approximately $150 million in annual revenues.

Marriott International, Inc., 301-380-2553