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ORLANDO-Locally based CNL Hotels & Resorts Inc. closed a $1.5-billion, two-year loan with an affiliate of Deutsche Bank and put five hotel and resort properties up for collateral.

The interest rate and the identities of the properties were not disclosed in a prepared statement by CNL CEO Thomas J. Hutchison III. Mortgage brokers familiar with the deal tell GlobeSt.com the estimated rate was under $6%.

The loan will be used to repay the $794-million CMBS loan CNL assumed in the acquisition of KSL Recreation Corp and to reduce the short-term loan obtained previously to acquire KSL. That loan has an outstanding balance of about $1 billion.

Hutchison says CNL intends to repay the remaining balance on the short-term loan with a $375-million secured credit facility, also obtained from a Deutsche Bank affiliate. CNL plans to close on that facility by Sept. 30.

“Closing of the secured credit facility is subject to certain conditions,” Hutchison says. “There can be no assurance that these conditions will be satisfied, or, if satisfied, that the credit facility will close.” Still, the CEO says, his firm is “pleased to complete this first key component of our overall capital strategy with our valued financial partner, Deutsche Bank.”

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