CNL Agrees to Sell 32 Hotels to Whitehall
ORLANDO, FL, December 14, 2006. CNL Hotels & Resorts, Inc., the nation's second largest hotel real estate investment trust, announced today that it entered into an agreement to sell 32 non-strategic hotels to an affiliate of Whitehall Street Global Real Estate Limited Partnership 2005 for approximately $405 million, or $88,447 per key. The sale price, which is subject to adjustment, represents a 7.8 percent capitalization rate based on projected 2006 net operating income.
The majority of the hotels are in the select service segment, comprising a total of 4,579 rooms, including: 14 Hampton Inns, 4 Holiday Inns, 3 Holiday Inn Expresses, 3 Residence Inns, 3 Sheratons, 2 Sheraton Four Points, 1 Courtyard, 1 Homewood Suites and 1 Ramada.
Thomas J. Hutchison III, CEO of CNL Hotels & Resorts, stated, "This sale demonstrates our continued ability to leverage a healthy lodging market by recycling capital through the sale of non-strategic assets. Further, this transaction marks a significant step in our efforts to refine the quality and distinction of our portfolio, intensifying our focus on luxury and upper-upscale assets as we seek ways to maximize shareholder value by the end of 2007, as provided by our charter."
CNL Hotels & Resorts intends to use the net proceeds from the sale, which is expected to close in the first quarter of 2007, for general corporate purposes including the retirement of long-term debt. The transaction is subject to certain closing conditions and there can be no assurance that the sale will be completed.
About CNL Hotels & Resorts, Inc.
CNL Hotels & Resorts, Inc. is a leading real estate investment trust and owner of one of the most distinctive portfolios in the lodging industry. With a focus on luxury and upper-upscale properties, the company currently has approximately $6 billion in total assets with 91 hotels and resorts across North America that operate under premium brands such as The Waldorf=Astoria Collection, Hilton, The Ritz-Carlton, JW Marriott, Marriott and Hyatt. For more information, please visit www.cnlhotels.com.
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the planned use of sales proceeds, possible purchase price adjustment, the closing of the sale, CNL Hotels & Resorts, Inc. (the "Company") strategy, maximizing value for the Company's shareholders and other statements that are not historical facts, and/or statements containing words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "could", "target(s)," "project(s)," "will," "believe(s)," "seek(s)," "estimate(s)" and similar expressions.
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