CNL-Hilton JV Pays $212M for Two Hotels

ORLANDO-With an existing portfolio of 28,000 rooms in 129 hotels, locally based CNL Hospitality Properties Inc. is adding another 938 rooms and two hotels to its growing roster with the $212-million acquisition of the 394-room Hilton La Jolla Torrey Pines outside San Diego and the 544-room Capital Hilton in Washington, DC.

CNL did the deal in partnership with Beverley Hills, CA-based Hilton Hotels Corp., the third joint venture for the two companies. CNL will be the majority owner in the two properties. Hilton, the minority owner, will manage and operate the hotels under a long-term contract. Hilton contributed both hotels to the partnership.

CNL-Hilton is also negotiating to buy the under-construction, 1,200-room, 30-story Hilton San Diego Convention Center Hotel when it is completed in 2006, the companies report in a jointly prepared statement.