CNL Hotels & Resorts acquires remaining interests in the JW Marriott Desert Ridge Resort & Spa
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CNL Hotels & Resorts acquires remaining interests in the JW Marriott Desert Ridge Resort & Spa
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2006-05-24
CNL Hotels & Resorts, Inc., the nation's second largest hotel real estate investment trust, announced today it has acquired the remaining interests in the 950-room JW Marriott Desert Ridge Resort & Spa in Phoenix, Arizona, increasing its ownership to 100 percent. CNL Hotels & Resorts acquired the remaining 56 percent interest in the venture from Desert Ridge Resort, Ltd. and Marriott Hotel Services, Inc. for an aggregate purchase price of approximately $65 million, plus closing price adjustments (based on working capital and cash flow of the resort before closing). The purchase price for the equity interests was based on a total valuation of approximately $416 million for the property, or approximately $438,000 per key.
"We are extremely pleased to increase our investment in the JW Marriott Desert Ridge Resort & Spa, an asset that we know intimately from our involvement in its development and our active asset management role since its 2002 opening. This spectacular resort directly aligns with our target profile of luxury and upper upscale properties, offering world-class amenities and multiple demand generators. At the same time, the transaction furthers our efforts to simplify our corporate financial structure," said Thomas J. Hutchison III, chief executive officer of CNL Hotels & Resorts. "Coupled with our Ritz-Carlton and JW Marriott properties in Orlando, we expect to benefit greatly from Marriott's global marketing reach to synergize group business in both East and West U.S. markets."
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