ORLANDO, FL—CNL Hotels and Resorts, Inc. is selling 32 primarily limited-service properties for $405 million to Whitehall Street Global Real Estate Limited Partnership 2005. The transaction is expected to close during first quarter. The sale price, which equates to $88,447 per key, represents a 7.8% capitalization rate based on projected 2006 net operating income. The portfolio of properties includes 14 Hampton Inns, four Holiday Inns, three Holiday Inn Expresses, three Residence Inns, three Sheratons, two Four Points by Sheraton hotels, one Courtyard by Marriott hotel, one Homewood Suites and one Ramada. CNL will use the sale proceeds for general corporate purposes that will include the retirement of long-term debt. CNL, a private REIT, currently has until December 2007 to become a public REIT or liquidate its remaining assets. After the disposition of these 32 properties, CNL will own 59 hotels. It currently has 91. Earlier this year, Whitehall acquired 130 mostly limited-service hotels from Tharaldson for $1.2 billion.
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