CNL Hotels & Resorts, Inc. announced that it has entered into two separate purchase agreements to acquire the remaining membership interests in the entity that owns the 950-room JW Marriott Desert Ridge Resort & Spa in Phoenix, Arizona.
The Company will acquire the remaining 56 percent interest from Desert Ridge Resort, Ltd. ("DRR Ltd.") and Marriott Hotel Services, Inc. ("MHS") 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 Company expects to complete the purchase in the second quarter of 2006, subject to approval of the purchase from DRR Ltd.'s limited partners, and other closing conditions. There can be no assurance that the purchases will be completed.
"Our expanded investment in the JW Marriott Desert Ridge Resort & Spa is consistent with our commitment to the luxury and upper upscale market and provides us with complete ownership of this signature asset that we helped develop," said Thomas J. Hutchison III, chief executive officer of CNL Hotels & Resorts, Inc. "We are pleased with its performance and remain optimistic about its ability to continue to capitalize on the continuing strength of the lodging market."
"We expect this property to continue to benefit from Marriott's global marketing program through its network of large destination resorts, including our recently added Ritz-Carlton and JW Marriott Grande Lakes resort in Orlando, Florida," added John Griswold, president of CNL Hotels & Resorts, Inc. "This platform for group bookings is expected to provide synergistic strength in group venues in the Eastern and Western U.S."
The JW Marriott Desert Ridge Resort & Spa provides state-of-the-art amenities while guests enjoy nine distinctive dining experiences, a luxurious 28,000-square-foot European spa, magnificent swimming pools with interconnecting waterways and waterfalls, an eight-court tennis pavilion and world-class golf on two 18-hole championship courses. The property features 200,000 square feet of indoor and outdoor meeting and event space and an additional 10,000 square feet of convention space currently under construction.
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