CNL Hospitality Properties, an Orlando-based real estate investment trust, has signed a contract to acquire KSL Recreation Corp., an owner and operator of luxury hotels, golf resorts and spas in Hawaii, California, Arizona and Florida.
CNL Hospitality will acquire 100 percent of the outstanding stock of KSL for $1.3 billion and assume long-term debt in the amount of $794 million.
“We are very excited to add such distinguished hotels to our portfolio of hospitality properties….We see signs that the travel sector is strengthening, and we think this is the right time to invest in such outstanding properties as a further step in our strategy to build long-term value for our investors,” said CNL Hospitality CEO Thomas J. Hutchison III.
The properties being acquired are Grand Wailea Resort & Spa in Maui, La Quinta Resort & Club and PGA WEST in La Quinta, Doral Golf Resort & Spa in Miami, Arizona Biltmore Resort & Spa in Phoenix, Claremont Resort & Spa in Berkeley, Calif., and Lake Lanier Islands Resort near Atlanta, Ga.
CNL Hospitality was advised by UBS Investment Bank and Greenberg Traurig. KSL Recreation was advised by Goldman, Sachs & Co., Simpson Thacher & Bartlett and Allen Matkins Leck Gamble and Mallory. An affiliate of Deutsche Bank AG committed to provide financing to CNL Hospitality for a portion of the transaction.
CNL Hospitality Properties is an affiliate of CNL Financial Group. The unit owns interests in 130 hotels with 29,000 rooms.
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