CNL to Buy Another Hotel REIT

CNL Hospitality Properties Inc., Orlando, Fla., and RFS Hotel Investors Inc., Memphis, have announced an agreement under which a wholly owned subsidiary of CNL will acquire RFS for a total consideration of approximately $687.6 million.The total price includes approximately $383 million in cash and the assumption of total debt of $304.6 million. After the acquisition, CNL will be the nation's fifth-largest hospitality real estate investment trust, based on assets and number of hotels, the companies said. "The acquisition of RFS is a compelling strategic opportunity," said Thomas J. Hutchison III, CNL's chief executive officer. "The RFS portfolio brings CNL and our investors strong, dependable cash flow, enhanced scale, and brand and geographic diversification." The REITs can be found online at http://www.cnlonline.com and http://www.rfshotel.com.