CNL Hotels & Resorts, Inc. 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.
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