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OAHU, HI-The 1,310-room Waikiki Beach Marriott Resort here has been put under contract for $279 million. The transaction is expected to close in the fourth quarter.

The seller, a partnership that includes publicly held CNL Hotels & Resorts of Orlando, acquired the property from Marriott International in 2001 for $130 million and then completed a $65-million renovation. The buyer is an affiliate of Whitehall Street Global Real Estate Limited Partnership 2005.

The sale price represents $213,000 per key and a 3.9% capitalization rate based on 2004 net operating income. CNL’s estimated net gain on the transaction is $48 million.

“While this is a premier destination resort, we evaluated the attractive price being offered and determined it was the right time to leverage the market cycle of this property, supporting our long-term strategy to take advantage of value-enhancing buying and selling opportunities,” says CNL chief executive Thomas J. Hutchison III.

The sale will enable CNL to capitalize on favorable lodging market fundamentals and recycle capital into new investments. A representative of the buyer could not be reached Monday afternoon for comment.

CNL owns 94 hotels and resorts across North America. It continues to have a presence in Hawaii with its 780-room Grand Wailea Hotel Resort & Spa in Maui.

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