"While 2001 was a particularly difficult year for the lodging industry, hotel investors' continued interest in owning our brands demonstrates the success of our business strategy," said William J. Shaw, president and chief operating officer of Marriott International. "We are pleased that CNL Hospitality Corp. has chosen to expand its portfolio of Marriott International lodging properties and we look forward to continuing the strong long-term relationship between our organizations," Mr. Shaw added.

Marriott International developed and will continue to operate the eight hotels under long-term management agreements with an affiliate of CNL Hospitality Corp. The sale has closed on two of the hotels included in the transaction that are currently open. The sales of the Oakland hotel and another in Richmond, Va., are complete, while sales of the remaining six hotels are expected to be completed over the first three quarters of 2002. The eight hotels are located in California, New Jersey, Pennsylvania and Virginia and include a total of 1,374 rooms.

Arne M. Sorenson, executive vice president and chief financial officer of Marriott International, said, "In 2001, we sold real estate assets and investments (including a total of 18 hotels) with an aggregate sales value of more than $730 million. In addition, we have agreements to sell within nine months an additional seven hotels (including the remaining six hotels in the transaction announced today), which are under development and have an aggregate sales value of more than $205 million."