CNL Hotels & Resorts, Inc.
(“CNL”), the nation’s second-largest hotel real estate investment trust
(“REIT”), today announced the closing of a $1.5 billion secured loan with
an affiliate of Deutsche Bank. The loan is secured by five hotel and
resort properties owned by CNL and has an initial term of two years with
three one-year extensions at the company’s option.Proceeds of the loan will be used to repay the $794 million CMBS loan
assumed in the acquisition of KSL Recreation Corporation (“KSL”) and to
reduce the short-term loan that was obtained to acquire KSL, which
currently has an outstanding balance of approximately $1.0 billion. CNL
intends to repay the remaining balance on the short-term loan with a $375
million secured credit facility also with an affiliate of Deutsche Bank
for which CNL has received a commitment and which it anticipates closing
on or before September 30, 2004. Closing of the secured credit facility is
subject to certain conditions. There can be no assurance that these
conditions will be satisfied or, if satisfied, that the credit facility
will close.

“We are pleased to complete this first key component of our overall
capital strategy with our valued financial partner Deutsche Bank,” said
Thomas J. Hutchison III, chief executive officer of CNL Hotels & Resorts,
Inc.
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