The resort�s 1,310 rooms are housed in two towers, the 33-story Kuhio Tower and the 25-story Kalakaua Tower, which makes it a landmark that can be seen from virtually anywhere in Waikiki. Currently the fourth largest hotel in Hawaii, the Waikiki Beach Marriott offers guests magnificent views of the Pacific Ocean, Diamond Head and Kapiolani Park. Amenities include seven restaurants, two swimming pools, fitness center, tennis court and business center, in addition to approximately 52,000 square feet of

Marriott International, Inc.sold the Waikiki Beach Marriott Resort to a partnership controlled by CNL Hospitality Corp. for approximately $130 million in cash. Marriott International is a minority investor in the Partnership and will continue to operate the resort under a long-term management agreement with the Partnership.

An extensive $65 million redevelopment plan is already underway at the resort, to include renovations of all guest rooms and suites in the Kuhio Tower (the Kalakaua Tower was renovated in 1999), lobby area, meeting space and restaurants/lounges, as well as other public areas within the hotel. According to the resort�s General Manager, Dennis Nau, the enhancements will fully modernize the interior of the resort and leverage its outstanding Waikiki Beach location. �From the moment our guests enter the hotel, we want their experience to begin immediately with awe-inspiring ocean vistas, tropical water features, lush foliage and abounding Hawaiian heritage,� said Mr. Nau. Renovations are scheduled to be complete in 2002.

�It was evident to us early-on that the Waikiki Beach Marriott had a tremendous redevelopment upside, due to the global strength of the Marriott brand and the hotel�s attractive position in a prominent resort market,� said Charlie Muller, chief operating officer of CNL Hospitality Corp.  �We are extremely excited about our investment in this property, which fits squarely into our strategy of owning premium hotels in high growth markets and working alongside the industry�s leading lodging companies.�

�The Waikiki Beach transaction further expands our relationship with CNL, who now owns 33 Marriott hotels,� said Arne Sorenson, chief financial officer of Marriott International, Inc.  �The strategies of CNL and Marriott are aligned to focus on the lodging industry�s leading hotel properties in leading markets.�

CNL�s entry into Hawaii also marks a significant milestone for the company, adding the 18th state to its hotel portfolio and the 49th state for its parent company, CNL Financial Group, Inc.  �Our company has anticipated finding the right investment opportunity in Hawaii and the Waikiki Beach Marriott far exceeded any of our expectations,� said James M. Seneff, chairman and chief executive officer of CNL Financial Group, Inc.  �Waikiki is truly one of the world�s most distinguished destinations.�

CNL Hospitality Corp. is the hotel industry investment and development subsidiary of CNL Financial Group, Inc. Through partnering with several of the industry�s top-tier lodging companies, the company owns or controls a geographically diverse portfolio of 35 hotels with 8,500 rooms in 18 states.

CNL Financial Group, Inc. is one of the nation�s largest, privately held real estate investment and finance companies, headquartered in Orlando, Florida. CNL Financial Group, Inc. and the entities it has formed have acquired more than $5.0 billion in assets, representing more than 3,000 properties in 49 states. The company and those entities focus on properties in the hospitality, retirement, corporate facility, community development, retail and restaurant sectors.