Morgan Stanley buys $6.6bn hotels

19 January 2007

Morgan Stanley is to buy CNL Hotels & Resorts in a deal worth $6.6 billion.

Morgan Stanley Real Estate will pay $20.50 per CNL share and take on CNL's debt.

Michael Franco, managing director of Morgan Stanley Real Estate, said: "This acquisition is a unique opportunity to acquire eight top-quality resort properties diversified across key U.S. travel destinations.

"We believe that these types of luxury hotels are extremely hard to replicate and will exhibit excellent future growth from increased corporate group travel and leisure travellers seeking a one-of-a-kind experience."

The hotels picked up by Morgan Stanley include three properties in Hilton's Waldorf-Astoria Collection, the Ritz-Carlton Orlando and JW Marriott Orlando at the Grande Lakes Resort and the Doral Golf Resort & Spa, a Marriott Resort in Miami, Florida.

As a part of the deal CNL will sell 51 properties to Ashford Hospitality for $2.4 billion.

The deal is expected to close in the second quarter of 2007.

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