CNL Hospitality Closes $1B Cash Acquisition

ORLANDO-In the biggest deal of its 15-year existence, locally based CNL Hospitality Properties Inc. has acquired six trophy destination resorts from La Quinta, CA-based KSL Recreation Corp. for an all-cash price of $1.4 billion.

CNL arranged a $1.1-billion, short-term credit contract with an affiliate of Deutsche Bank AG to cover the 3,531-room deal. CNL also assumed KSL’s long-term debt of $794 million. KSL will continue to manage the properties until a permanent manager is selected.

The acquisition includes the 780-room Grand Wailea Resort & Spa on Maui, Hawaii; the 796-room La Quinta Resort & Club and PGA West in La Quinta, CA; the 692-room Doral Golf Resort & Spa in Miami; the 738-room Arizona Biltmore Resort & Spa in Phoenix; the 279-room Claremont Resort & Spa in Berkeley, CA; and the 246-room Lake Lanier Islands Resort near Atlanta.