CNL Hospitality Corp. (“CNL”) and Interstate Hotels Corporation (Nasdaq:IHCO) today announced the formation of a partnership that will initially own two existing hotel properties, with a total investment of $22 million, located in the greater Hartford, Connecticut area: a 90-room Courtyard by Marriott and a 96-room Residence Inn by Marriott. The acquisition marks the first transaction of this newly formed partnership.
CNL, one of the lodging industry’s leading acquirers of hotel properties, will own a majority interest in the partnership. Interstate, one of the largest independent hotel management companies in the United States, will operate the two hotels under long-term management agreements and retain a minority interest in the partnership.
“This new relationship with Interstate Hotels is an excellent execution of CNL’s investment strategy, aligning our company with additional top-tier national operating companies who possess similar growth objectives,” said Charlie Muller, Chief Operating Officer of CNL Hospitality Corp. “We are pleased to be working alongside Interstate as we continue to add quality hotel assets to our portfolio and broaden our diversification and geographic reach.”
According to Thomas F. Hewitt, Chairman and Chief Executive Officer of Interstate Hotels, “CNL Hospitality is an organization with an excellent reputation in the hospitality industry and one that shares our goals and commitment to providing the highest level of quality service to our guests, associates and the business community. We look forward to building upon this relationship.”
The two hotels are strategically positioned within one of New England’s largest retail shopping areas. The area also hosts a number of industrial business parks, to include regional offices for such companies as United Technologies, Aetna, The Travelers, CIGNA, Pratt & Whitney and the J.C. Penney Distribution Center.
CNL Hospitality Corp., the hotel industry investment and development subsidiary of CNL Financial Group, Inc., currently owns or controls a geographically diverse portfolio of 49 hotels with 11,680 rooms in 21 states. Headquartered in Orlando, Florida, CNL Financial Group, Inc. is one of the nation’s largest privately held real estate investment and finance companies. CNL Financial Group, Inc. and the entities it has formed have acquired more than $5.0 billion in assets, representing more than 3,000 properties in 49 states. The company and those entities focus on properties in the hospitality, retirement, corporate facility, community development, retail and restaurant sectors.
Interstate Hotels Corporation operates approximately 135 hotels with more than 27,000 rooms in 36 states in the United States as well as Canada, the Caribbean and Russia. For more information, visit www.interstatehotels.com.