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From Starwood Hotels & Resorts |
| ORLANDO, Fla., Sept. 2, 2003 - CNL Hospitality
Properties, Inc. ("CNL") announced today it has acquired two Marriott
brand hotels from Starwood Hotels & Resorts Worldwide, Inc. ("Starwood")
-- the Marriott Hotel at Baltimore-Washington International Airport and
a Courtyard by Marriott in Arlington, Virginia -- both of which will be
managed by Marriott International, Inc. ("Marriott") under long-term contracts.
CNL is also in advanced negotiations to acquire a majority interest in
two Sheraton hotels that are expected to be owned by a partnership to be
formed between CNL and Starwood. Following acquisition, it is expected
that Starwood will continue to manage these two properties. Once
the transaction is consummated, this will mark the first partnership between
CNL and Starwood.
In an unrelated transaction, CNL has acquired the 404-room Doubletree Hotel in Plano, Texas. Upon its acquisition, the property was converted into a Marriott Hotel and is managed by Marriott under a long-term contract. The hotel is located within Legacy Park, a mixed-use development of offices, shops, restaurants and residences, as well as many corporate headquarter campuses. The total consideration for all five properties is expected to be approximately $225.6 million. "CNL is pleased to begin a new relationship with Starwood, expand our association with Marriott, and looks forward to continuing our relationships with both of these exceptional lodging companies," said Thomas J. Hutchison III, CEO of CNL Hospitality Properties, Inc. "The addition of these premier assets, including the strength of the Sheraton brand, will give us a presence in several additional major urban markets and further our portfolio diversification." "The sale of these hotel assets will enable us to further strengthen our balance sheet, while maintaining management of two outstanding properties," said Barry S. Sternlicht, Chairman and CEO of Starwood. "We are pleased to be aligned with a high-quality capital partner in CNL and look forward to continuing to build on that relationship in the future." The 10-story Baltimore-Washington International Airport Marriott has 310 rooms and is located near many corporate headquarters, including PricewaterhouseCoopers, Raytheon and Lockheed Martin. The Courtyard Crystal City in Arlington, Virginia is situated next to Reagan National Airport just outside of Washington, D.C., and features 272 newly-renovated rooms minutes away from the Pentagon, White House and other area attractions. The acquisition of the majority interest in the two Sheraton hotels from Starwood is subject to customary closing conditions. There can be no assurance that any or all of the closing conditions will be satisfied, or if satisfied, that these properties will be acquired by CNL. CNL Hospitality Properties, Inc. is an affiliate of CNL Financial Group, Inc., and specializes in the investment of quality hotels and resorts. Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) is one of the leading hotel and leisure companies in the world with more than 740 properties in more than 80 countries and 105,000 employees at its owned and managed properties. MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading worldwide hospitality company with over 2,600 lodging properties in the United States and 68 other countries and territories. Certain statements and information included in this release constitute
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| Contact:
CNL Hospitality Properties, Inc. http://www.cnlonline.com |
| Also See: | Hotel Investment Market Relatively Strong; Helped by Low Interest Rates and the Availability of Capital / July 2003 |