CNL Hospitality Properties, Orlando, Fla., is acquiring KSL Recreation, a La Quinta, Calif.-based owner and operator of "upscale destination resorts," for $1.366 billion.CNL is also assuming long-term debt of $794 million on the KSL properties, the private real estate investment trust said. The KSL holdings include luxury hotels, golf resorts, and spas in Hawaii, California, Arizona, and Florida, CNL said. "The acquisition of these premium properties -- which are well managed and beautifully maintained -- fits perfectly with our strategy of building a highly diversified, world-class portfolio of hotels and resorts," said Thomas J. Hutchison III, CNL's chief executive officer. He added that CNL is seeing "signs that the travel sector is strengthening" and believes that this is a good time to invest in such properties. An affiliate of Deutsche Bank has committed to partly finance the transaction, CNL said.

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