CNL Trust to Acquire Resort Property Owner KSL Recreation

Real estate investment trust CNL Hospitality Properties Inc. said Thursday that it agreed to acquire KSL Recreation Corp., an owner of luxury resorts in Hawaii and other vacation spots, for $1.37 billion.

CNL, which also would assume $794 million in long-term debt, said the acquisition of KSL’s six properties would expand its presence in the business of high-end destination resorts.

La Quinta-based KSL owns luxury hotels, golf resorts and spas, including the Arizona Biltmore Resort & Spa in Phoenix, the Doral Golf Resort & Spa in Miami and Grand Wailea Resort & Spa on Maui in Hawaii.

“We see signs that the travel sector is strengthening, and we think this is the right time to invest in such outstanding properties,” said Thomas Hutchison, CNL’s chief executive.

An affiliate of Deutsche Bank has committed to provide financing to CNL for a portion of the transaction. The deal is expected to close in mid-April.

In December, CNL acquired the Hotel del Coronado in San Diego through a joint venture partnership with KSL. Affiliates of KSL will continue to own a minority stake in the hotel, in addition to owning the La Costa Resort & Spa in Carlsbad.

CNL, which owns interests in 130 hotels in the United States and Canada, also recently acquired the Wyndham Montreal and two properties owned by Hilton Hotels Corp. in Wash- ington and in the San Diego area.