Ashford Hospitality Trust signed
definitive agreements to acquire a portfolio of 51 hotels
previously owned by CNL Hotels and Resorts in a $2.4 billion
transaction. The portfolio of hotels became available due to a $6.6
billion deal announced Jan. 19 in which CNL Hotels agreed to be
acquired by Morgan Stanley Real Estate.
Ashford will
become one of the largest real estate investment trusts in the U.S.
with completion of the transaction, pending certain
approvals.
Morgan Stanley
will retain eight CNL properties including three operating under
Hilton's Waldorf-Astoria Collection brand: The Grand Wailea Resort
Hotel & Spa in Maui, Hawaii; the La Quinta Resort & Club
and PGA West in La Quinta, Calif.; and the Arizona Biltmore Resort
& Spa in Phoenix. In addition, Morgan Stanley will acquire the
Ritz-Carlton Orlando and JW Marriott Orlando at the Grande Lakes
Resort; the Doral Golf Resort & Spa, a Marriott Resort in
Miami; the JW Marriott Desert Ridge Resort & Spa in Phoenix;
and the Claremont Resort & Spa in Berkeley, Calif.
The portfolio
acquired by Ashford is comprised of 24 full-service, upper-upscale
hotels -- totaling 7,953 rooms that operate under such brand names
as Hilton, Embassy Suites, JW Marriott, Marriott, Doubletree,
Renaissance and Hyatt -- and 27 premium select-service hotels --
such as Courtyard by Marriott, Residence Inn by Marriott,
SpringHill Suites by Marriott, Fairfield Inn by Marriott,
TownePlace Suites by Marriott and Hampton Inn totaling 5,571
rooms.
Ashford noted
that the Marriott Seattle Waterfront; Hyatt Regency Montreal;
Hilton El Conquistador in Tucson, Ariz.; Hilton Costa Mesa
(Calif.); and Capital Hilton in Washington are among the hotels it
acquired.
"This portfolio
of well-located and strong-performing assets is one of the best
hotel collections we've seen in the past decade, and we are
extremely pleased to acquire it with a structure that is accretive
to shareholders in the first year of ownership," said Monty
Bennett, president and CEO of Ashford Hospitality Trust.
"The majority of
these markets are experiencing sizable RevPAR (revenue per
available room) gains, and we see this transaction as a
continuation of our efforts to position Ashford's assets in the
path of growth. This transaction gives us the opportunity to extend
our proven investment and portfolio management strategies on a much
larger platform."
In 2004, Ashford
acquired a portfolio of 21 hotels from companies controlled by
Fisher Brothers, the Gordon Getty Trust and George
Soros.
To contact
the reporter who wrote this article, send e-mail to Michael
Milligan at [email protected].