PRNewswire CORONADO, Calif. Oct. 17 :
Lowe Enterprises Investment Management, LLC has entered into a purchase
and sale agreement with a partnership between CNL Hospitality Properties,
Inc. (“CNL”) and KSL Recreation Corporation (“KSL”) for the sale of the
legendary Hotel del Coronado to CNL and KSL. The historic 688-room resort,
built in 1888, is situated along 31 beachfront acres on the island of
Coronado in San Diego.
Since acquiring the property on behalf of one of its pension fund clients
in 1997, Lowe Enterprises, a Southern California based company, and
Destination Hotels and Resorts (DH&R), its management subsidiary, have
contributed to the future of this historic property. Their commitment to
preservation is evidenced by a $55 million restoration, completed in June
2001, which included aesthetic enhancements and the structural
reinforcement of the Victorian landmark.
CNL, one of the lodging industry`s top acquirers of hotels, is expected to
own a majority interest in the partnership. KSL, one of the nation`s
leading owners and operators of luxury destination resorts, is expected to
operate the hotel under a long-term management agreement and hold a
minority interest in the partnership.
Once the transaction is consummated, the addition of the Hotel del
Coronado will bring CNL`s portfolio to 127 hotels in 37 states with more
than 27,000 rooms with 19 nationally recognized hotel brands. Other
destination resorts in CNL`s portfolio include the 950-room JW Marriott
Desert Ridge Resort & Spa in Phoenix, the 1,310-room Waikiki Marriott
Beach Resort and the 428-room Hilton Tucson El Conquistador Golf & Tennis
Los-Angeles-based Lowe Enterprises, Inc. is a diversified, national real
estate investment, development and management company. During its over 30
year history, the company has acquired, developed or managed over $6
billion in real estate assets nationwide. The firm`s investment activities
are managed through Lowe Enterprises Investment Management, which has
acquired over $3.5 billion of commercial, residential, and hospitality
assets on behalf of its pension fund clients during the last ten years.
For more information, visit http://www.loweenterprises.com/. Destination
Hotels & Resorts (DH&R) is the firm`s hospitality management subsidiary.
DH&R is one of the largest independent lodging management companies in the
United States operating 24 independent, luxury and upscale hotels, resorts
and golf clubs in the United States, featuring more than 6,400 guest
rooms, 15 golf courses and eight full- service spas.
CNL Hospitality Properties, Inc., an affiliate of CNL Financial Group,
Inc., is a leading real estate investment trust in the lodging industry
and specializes in investing in quality hotels and resorts. 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 or acquired have over
$8 billion in assets, representing more than 3,000 properties in 49
states. For additional information, please visit http://www.cnlonline.com/.
KSL Recreation Corporation is a La Quinta, California-based owner and
operator of La Quinta Resort & Club and PGA West in La Quinta, California;
The Claremont Resort & Spa in Berkeley, California; La Costa Resort & Spa
in Carlsbad, California; The Arizona Biltmore Resort & Spa in Phoenix,
Arizona; Doral Golf Resort and Spa in Miami, Florida; Grand Wailea Resort
Hotel & Spa on Maui; and Lake Lanier Islands Resort near Atlanta, Georgia.
The acquisition of the Hotel del Coronado from Lowe Enterprises is subject
to customary closing conditions. There can be no assurance that all of the
closing conditions will be satisfied.