Morgan Stanley buys CNL Hotels & Resorts

19 January 2007 by
Morgan Stanley buys CNL Hotels & Resorts

Financial services firm Morgan Stanley has agreed a $6.6b (£3.35b) deal to acquire US hotels operator CNL Hotels & Resorts.

The purchase of CNL, the second largest real estate investment trust (REIT) in the USA, will give Morgan Stanley control of 59 luxury hotels and resorts across the US operated under brands including Hilton and Marriott.

The contract also includes the Doral Golf Resort and Spa in Miami, which has played host to PGA Tour tournaments for more than 40 years on its five championship courses.

Under the terms of the agreement, CNL will sell 51 of its hotels to Ashford Hospitality Trust, a US investment trust for $2.4b (£1.2b).

Morgan Stanley will then take control of CNL and its remaining eight high-end properties, which include three properties trading under Hilton's Waldorf-Astoria brand, a Ritz-Carlton property, two JW Marriott properties, The Doral and The Claremont, a resort in California.

Michael Franco, managing director at Morgan Stanley Real Estate, said: "We believe that these types of luxury hotels are extremely hard to replicate and will exhibit excellent future growth from increased corporate group travel and leisure travellers seeking a one-of-a-kind experience."

Marriott to sell eight US hotels for £124.5m >>

CNL Hotels & Resorts sells 32 properties for $405m >>

What is a REIT? >>

Industry welcomes new rules on REITs >>

By Daniel Thomas

E-mail your comments to Daniel Thomas]( Stanley buys CNL Hotels & Resorts) here.

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