EXHIBIT 12
HOST MARRIOTT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions, except ratio amounts)
| 2005 |
2004 |
2003 |
2002 |
2001 |
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| Income (loss) from operations before income taxes |
$ | 162 | $ | (84 | ) | $ | (260 | ) | $ | (78 | ) | $ | 4 | |||||||
| Add (deduct): |
||||||||||||||||||||
| Fixed charges |
525 | 574 | 606 | 576 | 569 | |||||||||||||||
| Capitalized interest |
(5 | ) | (3 | ) | (2 | ) | (2 | ) | (8 | ) | ||||||||||
| Amortization of capitalized interest |
6 | 6 | 6 | 6 | 7 | |||||||||||||||
| Minority interest in consolidated affiliates |
16 | 4 | 5 | 7 | 23 | |||||||||||||||
| Net (gains) losses related to certain 50% or less owned affiliates |
1 | 16 | 22 | 9 | (3 | ) | ||||||||||||||
| Distributions from equity investments |
2 | 6 | 3 | 6 | 9 | |||||||||||||||
| Dividends on preferred stock |
(27 | ) | (37 | ) | (37 | ) | (37 | ) | (32 | ) | ||||||||||
| Issuance costs of redeemed preferred stock |
(4 | ) | (4 | ) | — | — | — | |||||||||||||
| Adjusted earnings |
$ | 676 | $ | 478 | $ | 343 | $ | 487 | $ | 569 | ||||||||||
| Fixed charges: |
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| Interest on indebtedness and amortization of deferred financing costs |
$ | 443 | $ | 483 | $ | 488 | $ | 458 | $ | 451 | ||||||||||
| Capitalized interest |
5 | 3 | 2 | 2 | 8 | |||||||||||||||
| Dividends on convertible preferred securities of subsidiary trust |
— | — | 32 | 32 | 32 | |||||||||||||||
| Dividends on preferred stock |
27 | 37 | 37 | 37 | 32 | |||||||||||||||
| Issuance costs of redeemed preferred stock |
4 | 4 | — | — | — | |||||||||||||||
| Portion of rents representative of the interest factor |
46 | 47 | 47 | 47 | 46 | |||||||||||||||
| Total fixed charges and preferred stock dividends |
$ | 525 | $ | 574 | $ | 606 | $ | 576 | $ | 569 | ||||||||||
| Ratio of earnings to fixed charges and preferred stock dividends |
1.3 | — | — | — | 1.0 | |||||||||||||||
| Deficiency of earnings to fixed charges and preferred stock dividends |
— | $ | (96 | ) | $ | (263 | ) | $ | (89 | ) | — | |||||||||