CNL Hotels & Resorts Inc. of Orlando, Fla., has signed a deal to sell its interest in the venture that owns the 679-room Hotel del Coronado, according to
Hotel Business Magazine.
The deal is expected to net CNL proceeds of about $165 million, resulting in an estimated net gain of approximately $141 million.
CNL Hotels & Resorts acquired the resort in a joint venture with New York-based Kohlbergh Kravis Roberts & Co. and La Quinta-based KSL Resorts in December 2003. The price of the purchase from Los Angeles-based Lowe Enterprises Investment Management LLC was not announced. However, estimates were that it went for about $385 million. Lowe reportedly paid $330 million for the property in 1997 and spent another $55 million on renovations.
The buyer in the current transaction was not named. It is expected to close during the first quarter of 2006.
CNL plans to use part of the proceeds from the sale for acquisitions in the luxury resort segment.
, Connie Lewis