CNL Hotels & Resorts announced Monday that the partnership in which it has a 49 percent interest has entered into an agreement with an affiliate of Whitehall Street Global Real Estate Limited Partnership 2005 to sell 100 percent of the 1,310-room Waikiki Beach Marriott Resort in Oahu for approximately $279 million. The estimated net gain to CNL Hotels & Resorts will be approximately $48 million after closing and related transaction costs.
According to Thomas J. Hutchison III, CEO of CNL Hotels & Resorts, the sale will enable the REIT to capitalize on favorable lodging market fundamentals and further its strategy to actively recycle capital from asset sales with opportunities to pursue selective acquisitions.
“While this is a premier destination resort, we evaluated the attractive price being offered and determined it was the right time to leverage the market cycle of this property, supporting our long-term strategy to take advantage of value-enhancing buying and selling opportunities,” stated Mr. Hutchison. “We also believe this transaction reinforces the strength of our portfolio management team and our repositioning and redevelopment efforts, which included the completion of an extensive $65 million reinvestment initiative in 2002 to modernize the resort’s interior and improve overall revenue potential.”