Hotel Online  Special Report


 CNL Hotels & Resorts, Inc., Selling Five Hotel
Properties to Pyramid Hotel Opportunity
Venture LLC for $109 million


July 15, 2005 - CNL Hotels & Resorts, Inc., the nation's second-largest hotel real estate investment trust, announced today that, through its subsidiaries, it has entered into an agreement with Pyramid Hotel Opportunity Venture LLC to sell five non-strategic hotel properties for $109 million, or $113,424 per key.

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.) -- 
in 2003 through its 57-hotel acquisition of RFS Hotel Investors, Inc. Collectively, the properties include a total of 961 rooms. The sale price represents a very favorable capitalization rate based on 2004 net operating income.

"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 .

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

C. Brian Strickland, EVP, CFO, Treasurer & Corporate Secretary,+1-407-650-1000
CNL Hotels & Resorts
Also See: CNL Hotels & Resorts, Inc. Reports 1st Qtr Net income Was $9.0 million; RevPAR Up 11.6% / Hotel Operating Statistics / May 2005
Ashford Hospitality Trust Finalizes Acquisition of 30-Hotel Portfolio for $465 Million from CNL Hotels & Resorts / June 2005

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