Hilton, CNL Partnership Acquires Two Hotels

Hilton Hotels Corp. here and Orlando-based hotel developer CNL Hospitality Corp. said they jointly acquired two hotels for approximately $121 million.
The hotels are the 500-room Doubletree Hotel at Lincoln Center in Dallas and the 428-room Sheraton El Conquistador Resort and Country Club in Tucson, Ariz. Both properties, which were owned by Metropolitan Life Insurance Co., will be converted to Hilton brand hotels.

The companies said they financed part of the purchase with a $78 million, five-year first mortgage at a fixed rate of about 6%.

This is the second acquisition resulting from a partnership the two companies announced in October 2001, when CNL-Hilton bought four hotels.

Including refurbishment costs, CNL-Hilton has a total capitalization of about $400 million and is majority-owned by CNL. Hilton operates the properties under long-term management agreements and has a minority interest in the partnership.

In addition to these latest acquisitions, the companies said the partnership executed a non-binding letter of intent to acquire five additional hotels, including one that is owned by and would be contributed by Hilton and one that would be contributed by CNL.