Distinguished Properties, The Ritz-Carlton and JW Marriott,
for Approximately $753 Million
|ORLANDO, Fla., Jan. 4, 2006 - CNL Hotels & Resorts, Inc., the nation's
second largest hotel real estate investment trust, today announced it has
entered into an agreement to acquire the 500-acre Grande Lakes Orlando
resort, comprising a 584-room Ritz-Carlton, a 998-room JW Marriott, a 40,000-
square-foot spa and an 18-hole Greg Norman-designed championship golf course.
Under the terms of the agreement, CNL Hotels & Resorts will acquire
100 percent of the Grande Lakes Orlando resort from an affiliate of Annapolis-
based Thayer Lodging Group for a purchase price of approximately $753 million,
subject to customary closing adjustments and prorations.
On the left the 1,000-room JW Marriott Orlando, Grande Lakes.
On the right the 584-room Ritz-Carlton Orlando, Grande Lakes.
"The addition of these two high-end destination properties to our portfolio, including our first Ritz-Carlton, exemplifies our focus on acquiring distinctive real estate assets while furthering our strategy to create long-term value for investors," said Thomas J. Hutchison III, CEO of CNL Hotels & Resorts. "Consistent with our stated goals, we look forward to employing our strong portfolio management skills to capitalize on Orlando's solid convention bookings. We are particularly enthusiastic about the growth opportunities at this spectacular two-and-a-half-year-old resort, which positions two of the industry's leading luxury brands within easy reach to the airport, convention center and major area attractions.
"We expect that the Grande Lakes Orlando resort will become one of the signature assets in our portfolio, and we look forward to working with the exceptional management teams of The Ritz-Carlton Hotel Company, L.L.C. and Marriott Hotels & Resorts."
The properties at the resort include:
John A. Griswold, president and chief operating officer of CNL Hotels & Resorts, has served as 2004-2005 chairman of the Orlando/Orange County Convention & Visitors Bureau and brings 20 years of Orlando hotelier experience to the Grande Lakes Orlando resort venture. "We are extremely pleased to be investing in our hometown of Orlando, the nation's second largest lodging market, and are confident that its strong demand generators will continue to drive growth in both group and individual leisure travel," stated Mr. Griswold. "Further, we expect that both properties at the resort will benefit from Marriott's global marketing reach of group bookings through its network of large destination resorts, including our own JW Marriott Desert Ridge Resort & Spa in Phoenix, which will provide synergistic strength in group venues in the Eastern and Western U.S."
To enhance existing meeting space at The Ritz-Carlton and meet growing group demand, a 14,100-square-foot ballroom is currently being developed in a new 27,000-square-foot building. A separate 3,000-square-foot private exterior patio will also be available for outdoor functions. Construction is scheduled to be completed in the third quarter 2006. As part of the transaction, CNL Hotels & Resorts has allocated approximately $10 million for capital improvements at the resort, including the completion of The Ritz-Carlton ballroom and other capital projects such as a high-tech wireless connectivity system.
CNL Hotels & Resorts' plans to use proceeds in part from the sale of its interest in the Waikiki Beach Marriott Resort and the pending sale of its interest in the Hotel del Coronado to acquire the Grande Lakes Orlando resort. The transaction, which is expected to close during the first quarter 2006, remains subject to customary closing conditions. There can be no assurance that it will be completed.
Once the transaction is consummated, the addition of the Grande Lakes Orlando resort will bring CNL Hotels & Resorts' portfolio to 95 properties with more than 27,000 rooms with 20 nationally recognized hotel brands. Other destination resorts in its portfolio include: the 780-room Grand Wailea Resort Hotel & Spa in Maui, Hawaii; the 617-room La Quinta Resort & Club in La Quinta, California; the 950-room JW Marriott Desert Ridge Resort & Spa in Phoenix, Arizona; and the 692-room Doral Golf Resort & Spa, A Marriott Resort, in Miami, Florida.
About CNL Hotels & Resorts, Inc.
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 expected closing, future growth at Grande Lakes Orlando, completion of The Ritz-Carlton ballroom and associated improvements, maintaining prestigious awards at the resort, use of proceeds from properties sold or under contract for sale, 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.
CNL Hotels & Resorts, Inc.
|Also See:||Thayer Lodging Group Set to Open the $600 million Grande Lakes Orlando; Largest Non-gaming Hotel Project to Open in the US this Year / July 2003|
|Thayer Hotel Investors Developing Grand Lakes Resort in Orlando; Will Include a 1,000-room JW Marriott Hotel and a 584-room Ritz-Carlton Hotel / April 2001|