The alliance will kick off with ownership of two Hartford-area hotels: a 90-room Courtyard by Marriott and a 96-room Residence Inn, another Marriott brand. The venture's total initial investment will be $22 million.
CNL, one of the lodging industry's most aggressive buyers, will own the majority stake in the properties. Interstate, one of the largest independent hotel management companies in the US will have long-term management agreements for the two hotels and will hold the minority interest.
The properties are located within one of New England's largest retail centers and in close proximity to several regional industrial and office parks. Current and prospective tenants include United Technologies, Aetna, the Travelers, CIGNA, Pratt & Whitney and the J.C. Penney Distribution Center.
While CNL and Interstate representatives were unavailable for comment, CNL Hospitality Corp. CEO Charlie Muller indicated in a prepared statement that both firms are expecting future deals to sprout from the alliance. "This new relationship with Interstate hotels is an excellent execution of CNL's investment strategy," he says. "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."
CNL Hospitality is the hotel industry investment and development arm of CNL Financial Group Inc. It currently owns or controls a portfolio of 49 hotels with 11,680 rooms in 21 states. CNL Financial and its subsidiaries, with more than $5 billion in assets, represent more than 3,000 properties in 49 states. Its holdings include developments in the hospitality, retirement, corporate, retail and restaurant sectors.
Interstate operates roughly 135 hotels with more than 27,000 rooms in 36 states in the US, Canada, Russia and the Caribbean.
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