LA QUINTA, Calif., Aug. 19, 2004 - KSL Resorts, a leading luxury resort owner and manager since 1992, has launched a new phase of operations following its recent sale of six resorts to CNL Hotels & Resorts, Inc., the nation's second largest hotel real estate investment trust.  KSL, under the terms of long term agreements, will now manage three of those marquee luxury resorts:  Grand Wailea Resort Hotel & Spa (Maui, HI), La Quinta Resort & Club (La Quinta, CA), and Arizona Biltmore Resort & Spa (Phoenix, AZ).

These new management agreements, effective August 18, 2004, mark an important next step in the growth of KSL Resorts.  While the company currently owns interests in or operates such famous resorts as the Hotel del Coronado in San Diego and La Costa Resort and Spa in Carlsbad, the agreement to manage third-party owned properties signals a new phase of development for KSL.

"This has been a tremendous year for KSL Resorts," said Michael S.  Shannon, chief executive officer and co-founder of the company.  "We are delighted about our growing relationship with CNL and the opportunity to continue our relationship with Grand Wailea, La Quinta, and the Arizona Biltmore through these new management contracts.  These agreements set the stage for an exciting future for KSL, a time of growth secured through acquisitions, joint ventures and management contracts."

KSL is committed to operating stand-out properties with exceptional recreational amenities, including golf and spa facilities.  It will continue to cater to the discerning guest who values the heritage and culture of KSL resorts as well as the highest possible physical and service standards.

"We believe the time is right for us to extend our focus to manage select luxury properties on behalf of their owners," Shannon added.  "We're very pleased to begin this process with a strong third party owner in CNL, and we look forward to expanding our portfolio through new partnerships with other property owners going forward."

Grand Wailea Resort Hotel & Spa
Situated on 40 manicured acres at the base of Maui's Mount Haleakala, the 780-room Grand Wailea is a playground of golden sand beaches, elaborate pools, grottos and waterslides.  Its highly-regarded Spa Grande joins the entire resort in winning regular awards from the country's top travel publications.  The Grand Wailea is also remarkable for its luxurious accommodations, including The Napua Tower, a 100-room boutique hotel within the resort, expansive ocean views, a multi-million fine art collection, and access to golf and tennis clubs.

La Quinta Resort & Club
A landmark resort opened in 1926, La Quinta sits on 45 acres of orange, lemon and grapefruit trees, towering palms and brilliant seasonal flowers at the foot of Southern California's Santa Rosa Mountains.  Its 796 guest rooms are housed in charming single and two-story Spanish-style casitas.  In 1993, La Quinta was merged with the PGA WEST country club community to operate as one fully integrated resort famous for its nine award-winning golf courses.  The resort also boasts Spa La Quinta, and a plethora of dining venues.

Arizona Biltmore Resort & Spa
The only hotel in the world whose design reflects the direct influence of Frank Lloyd Wright, the legendary Arizona Biltmore has been open since 1929.  The resort, with 738 rooms, occupies 39 beautifully landscaped acres in the foothills of Squaw Peak in Phoenix.  The Arizona Biltmore counts five dining rooms, an expansive spa, eight swimming pools and access to two championship golf courses among its outstanding amenities.

KSL Resorts was founded in 1992 and is based in La Quinta, CA.  Its collection of unique and memorable golf and spa resorts includes:

• Arizona Biltmore Resort & Spa -- Phoenix, AZ
• Claremont Resort & Spa -- Berkeley, CA
• Emerald Pointe Resort -- Lake Lanier Islands, GA
• Grand Wailea Resort Hotel & Spa -- Maui, HI
• Hotel del Coronado -- San Diego, CA
• La Costa Resort and Spa -- Carlsbad, CA
• La Quinta Resort & Club -- La Quinta, CA
• PGA WEST -- La Quinta, CA