CNL Hotels & Resorts purchased the five properties -- 

• the DoubleTree Hotel San Diego/Del Mar, 
• Hotel Rex (San Francisco), 
• Beverly Heritage (Milpitas, Calif.), 
• Hilton San Francisco Fisherman's Wharf and 
• Holiday Inn Columbia (S.C.) -- 

"This transaction aligns well with our long-term strategy to actively recycle capital through the sale of non-strategic assets, while also allowing us to concentrate on the ownership and acquisition of luxury resorts and upper-upscale properties," stated Thomas J. Hutchison III, CEO of CNL Hotels & Resorts.

CNL Hotels & Resorts intends to use the proceeds from the sale to primarily retire existing long-term debt. The transaction, expected to close in third quarter of 2005, is subject to customary closing conditions, and there can be no assurance the sale will be completed.

About CNL Hotels & Resorts, Inc.
CNL Hotels & Resorts, Inc. owns one of the most distinctive portfolios in the lodging industry. With a focus on luxury resorts and upper-upscale properties, the company has nearly $6 billion in total assets with 100 hotels and resorts across North America that operate under independent brands and corporate brands such as Marriott, Hilton and Hyatt. For more information, please visit http://www.cnlhotels.com/ .

Certain statements and information included in this release constitute "forward-looking statements" within the meaning of the federal securities laws and regulations.