CNL Hospitality Corp. On a Roll

CNL Hospitality Corp. is on track to buy a total 19 hotel properties this year valued at $321 million, or an average $16.89 million per asset. The fast acquisition mode will drive the value of CNL’s portfolio to about $600 million this year, up from $254 million in 1999.

This year’s acquisitions comprise 30 properties in 17 states that are either owned or under commitment to be acquired by CNL. That volume compares with the company’s 1999 volume of nine acquisitions valued at $254 million.

“Access to capital has laid the foundation for yet another record-breaking year,” chief operating officer Charlie Muller tells GlobeSt.com.

The company’s most recent acquisition contract is with Marriott International. The nine-hotel purchase package includes three TownePlace Suites by Marriott; three SpringHill Suites by Marriott; two Courtyard by Marriott assets; and one Residence Inn by Marriott. The properties aggregately contain 1,143 rooms and are located in Georgia, Kansas, New Jersey, Massachusetts, Maine, North Carolina, Utah and Virginia.

CNL has also entered the country-club corridor of southern California with the acquisition of a 151-room Courtyard by Marriott and a 130-suite Residence Inn by Marriott. The $30 million purchase price for the total 281 rooms equates to $106,761 per room.

The properties are on an 11-acre site in Palm Desert, CA, adjacent to the exclusive 884-room Desert Springs Marriott Resort & Spa.

CNL also picked up a 162-room SpringHill Suites by Marriott in Gaithersburg, MD and a 140-room Residence Inn by Marriott in Merrifield, VA. The combined purchase price of $34 million for the 302 room package equates to $112,582 per room.

Planned for a yearend purchase is the $100 million Marriott Village at Little Lake Bryan in Orlando. The three-hotel complex offers 1,100 rooms on a 38-acre site in the Walt Disney World area. The Little Lake Bryan properties comprise a Courtyard by Marriott, a Fairfield Inn by Marriott and a SpringHill Suites by Marriott.

CNL Hospitality Corp. is an affiliate of CNL Financial Group Inc., a privately-held, Orlando-based real estate and financial services company. The parent firm has $4 billion in assets consisting of 2,700 properties in 48 states.