Host Marriott Agrees to Buy Forum Group

Host Marriott Corp. agreed to buy retirement-community owner Forum Group Inc. from Marriott International Inc. for $433 million in cash and assumed debt. The purchase would make Host Marriott the second-largest owner of housing communities for the elderly. Forum Group owns 29 upscale retirement communities in 11 states. To expand the properties, Host Marriott plans to spend $107 million in two years. The move comes as a greater number of U.S. citizens seek cheaper alternatives to nursing homes. For Host Marriott, the move sets up a steady source of revenue that may protect earnings from slumps in its hotel business, analysts said. Marriott shares were unchanged at $50.875, while Host Marriott shares rose 12.5 cents to close at $18 on the New York Stock Exchange.