CNL Hotels & Resorts Agrees to Sell Its Interest in the Hampton Inn Chelsea For an Estimated Gain of $17 Million
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CNL Hotels & Resorts Agrees to Sell Its Interest in the Hampton Inn Chelsea For an Estimated Gain of $17 Million
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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 2006-07-18
CNL Hotels & Resorts, Inc., the
nation's second largest hotel real estate investment trust, announced today
that it has entered into an agreement with Hersha Hospitality Trust to sell
its 66.7 percent interest in the partnership that owns the 144-room Hampton
Inn Chelsea in New York. The sale price is based on a valuation of $54.0
million for the property, or approximately $375,000 per key, resulting in
an estimated net gain of approximately $17 million.
Thomas J. Hutchison III, chief executive officer of CNL Hotels &
Resorts, stated, "The sale of our interest in the Hampton Inn Chelsea
reflects our strategy to focus on high-end hotels and resorts and to
selectively monetize the value in non-core assets by leveraging strong
market fundamentals. We are also particularly pleased to have worked with
an experienced Hersha management team on this venture."
CNL Hotels & Resorts intends to use the net proceeds from the sale
primarily to retire existing debt. The transaction is expected to close in
the third quarter of 2006, subject to closing conditions, although there
can be no assurance that the sale will be completed.
About CNL Hotels & Resorts, Inc.
CNL Hotels & Resorts, Inc. is a leading real estate investment trust
and owner of one of the most distinctive portfolios in the lodging
industry. With a focus on luxury and upper-upscale properties, the company
currently has approximately $6 billion in total assets with 92 hotels and
resorts across North America that operate under premium brands such as The
Waldorf=Astoria Collection, Hilton, The Ritz-Carlton, JW Marriott, Marriott
and Hyatt. For more information, please visit http://www.cnlhotels.com .
Certain items in this press release may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995, including, but not limited to, statements regarding a sale of
stated property and the expected use of proceeds from such sale and other
statements that are not historical facts, and/or statements containing
words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s),"
"could," "target(s)," "project(s)," "will," "believe(s)," "seek(s),"
"estimate(s)" and similar expressions. These statements are based on
management's current expectations, beliefs and assumptions and are subject
to a number of known and unknown risks, uncertainties and other factors,
including those outside of the Company's control that could lead to actual
results materially different from those described in the forward-looking
statements. The Company can give no assurance that its expectations will be
attained. Factors that could cause actual results to differ materially from
the Company's expectations and from those described in the forward-looking
statements include, but are not limited to: a change in the national
economy; changes in market conditions; the occurrence of terrorist
activities or other disruptions to the travel and leisure industries;
natural disasters; and such other risk factors as may be discussed in the
Company's annual report on Form 10-K and other filings with the Securities
and Exchange Commission. Such forward-looking statements speak only as of
the date of this press release. The Company expressly disclaims any
obligation to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any statement is based.
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