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CNL Hotels & Resorts Begins a Year Long Vanishing Act; Eliminaton of
101 Corporate Jobs Coincides with $6.6 billion Sale to Morgan Stanley

By Christopher Boyd, The Orlando Sentinel, Fla.McClatchy-Tribune Business News

Feb. 28, 2007 - CNL Hotels & Resorts plans to start shedding jobs in April, the beginning of a yearlong vanishing act that coincides with the $6.6 billion sale of the Orlando financial company's assets to Morgan Stanley Real Estate.

It will eliminate 101 jobs, including its top management positions, beginning April 24. It will completely disappear by April 12, 2008, the expected anniversary of its sale to Morgan Stanley.

CNL Hotels, a real estate investment trust with 100,000 investors and nearly 60 hotels and resorts, is expected to be sold to Morgan Stanley following a shareholder vote on April 10.

The plan was announced in a mandatory state filing. The list of jobs being eliminated ranges from chief executive officer and president to administrative assistants and accounting clerks.

Last week, CNL Hotels told employees that they would receive a severance of one year's pay, a $4.4 million distribution that averages about $44,000 for each non-executive.

Top executives will receive much more. For example, Chief Executive Officer Thomas J. Hutchison III would receive severance of $14.7 million plus $12.2 million cash for deferred shares.

As part of a two-step acquisition program, Ashford Hospitality Trust of Dallas will acquire 51 CNL hotels for $2.4 billion. Morgan Stanley will pick up eight CNL luxury properties, which include the Grande Lakes Orlando resort and the Grand Wailea Resort & Spa in Hawaii.

Christopher Boyd can be reached at cboyd@orlandosentinel.com or 407-420-5723.

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Copyright (c) 2007, The Orlando Sentinel, Fla.

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