Industry Update
Press Release 6 April 2006

CNL Hotels & Resorts Reports 2005 Fiscal Year End Results

Solid RevPAR Growth of 12.9% for 4th Quarter and 10.3% for Full Year

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CNL Hospitality

ORLANDO, Fla., CNL Hotels & Resorts, Inc. ("the Company"), the nation's second largest hotel real estate investment trust, announced results for the fourth quarter and fiscal year ended December 31, 2005. The following results are compared to the fourth quarter or fiscal year ended December 31, 2004.

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Fourth Quarter and Fiscal Year 2005 Performance Highlights

  • Total revenue increased 11.1% to $349.0 million for the quarter, and 27.0% to $1.3 billion for fiscal year 2005.
  • Revenue per available room ("RevPAR") for adjusted comparable properties, as defined in the attached Notes to Financial and Portfolio Information, increased 12.9% for the quarter, resulting from a 2.9 percentage point increase in occupancy to 71.0% and an 8.3% increase in average daily room rate ("ADR") to $137.65.
  • Hotel and resort operating profit margin for adjusted comparable properties, as defined in the attached Notes to Financial and Portfolio Information, was 27.8% for the quarter, representing a 1.8 percentage point increase, and increased 1.3 percentage points to 29.6% for the fiscal year.
  • Net income increased 107.9% to $6.9 million for the fiscal year ended December 31, 2005.
  • Adjusted EBITDA, as defined in the attached Notes to Financial and Portfolio Information, increased 28.1% to $345.6 million for the fiscal year ending December 31, 2005.
  • Adjusted Funds from Operations per diluted share, as defined in the attached Notes to Financial and Portfolio Information, increased 5.7% to $1.11 for the fiscal year ending December 31, 2005.

"We are enthusiastic about our solid fourth quarter results driven by continued RevPar and margin growth, which have collectively contributed to the strong performance of our portfolio in 2005," stated Thomas J. Hutchison III, chief executive officer. "We are particularly pleased with our overall 2005 RevPAR gains following our double-digit RevPAR growth in 2004."

Operating Performance

RevPAR for the Company's 85 adjusted comparable properties increased by 12.9% to $97.66 in the fourth quarter ended December 31, 2005 as compared to the same period in 2004, resulting from a 2.9 percentage point increase in occupancy to 71.0% and an 8.3% gain in ADR to $137.65. For the 85 adjusted comparable properties, hotel and resort operating profit margin improved in the fourth quarter ended December 31, 2005 by 1.8 percentage points to 27.8%. For the fiscal year ended December 31, 2005 as compared to the same period in 2004, RevPAR for adjusted comparable properties increased by 10.3% to $100.89, resulting from a 6.8% gain in ADR to $136.66 and a 2.3 percentage point increase in occupancy to 73.8%.

RevPAR for the Company's adjusted comparable consolidated 28 luxury resort and upper-upscale adjusted comparable properties posted an increase of 12.0% to $115.31 for the fourth quarter ended December 31, 2005, and hotel and resort operating profit margin improved by 1.3 percentage points for the fourth quarter as compared to the fourth quarter of 2004. For the fiscal year ended December 31, 2005, RevPAR for these adjusted comparable properties increased 9.5% and hotel and resort operating profit margin improved by 1.1 percentage points as compared to the 2004 fiscal year. The Company's 47 adjusted comparable properties that have undergone or are currently undergoing a change in management company or brand affiliation and/or repositioning through renovation, have posted a RevPAR gain of 15.4% and hotel and resort operating profit margin improved 3.1 percentage points for the fourth quarter ended December 31, 2005 as compared to the same period of 2004. For the fiscal year 2005, RevPAR for these properties increased 11.9% and hotel and resort operating profit margin improved by 2.3 percentage points, as compared to the fiscal year 2004.

John A. Griswold, president and chief operating officer, stated, "We posted solid RevPAR and profit margin gains this quarter resulting from a favorable room rate environment, robust group travel and our ability to influence cost containment efforts by our third-party management companies."

Balance Sheet & Financing Activities

The company's financial flexibility was significantly enhanced in 2005 from the closing of the $200 million senior secured revolving credit facility, the retirement of approximately $541 million of long-term debt (including the remaining balance of a $353 million secured term loan) with proceeds from the asset dispositions referenced below and the refinancing of all outstanding debt at JW Marriott Desert Ridge with a $300 million CMBS loan. As of December 31, 2005, the Company had approximately $181.3 million available under its $200 million revolver.

Subsequently, in January 2006, the Company closed on a $1.525 billion five-year CMBS loan that paid off the prior $1.5 billion CMBS loan and included $1.0 billion financed at a fixed rate of 5.57 percent and $525 million financed at a floating rate of 30-day LIBOR, plus 2.725 percent.

"The revolver and refinancing the prior $1.5 billion CMBS clearly demonstrate the implementation of our long-term capital plan. After hedging the lodging sector's early recovery with floating rate debt, we fixed $1 billion of our debt structure at a favorable long-term rate. This allowed us to enhance our fixed to floating rate mix and make a substantive reduction in interest costs," stated C. Brian Strickland, executive vice president and chief financial officer. "We remain focused on effectively managing our corporate capital structure and our opportunities to enhance our financial flexibility."

Dispositions

As previously announced in the fourth quarter of 2005, the partnership in which the Company held a 49% interest completed the sale of the Waikiki Beach Marriott Resort for approximately $279 million. Following the closing of the sale, the partnership distributed the net proceeds among the partners, including approximately $50.1 million to the Company.

In January 2006, the Company completed the previously announced sale of its interest in the venture that owned the Hotel del Coronado. As a result of the sale, net proceeds of approximately $166 million have been or are expected to be received and the Company anticipates an estimated net gain of approximately $130 million.

"While these two properties were part of our luxury and upper upscale portfolio, we believe selling our interests in them allowed us to benefit from a favorable market cycle and take advantage of the compelling sales prices being offered. Executing these sales supports our long-term strategy to harvest value in our mature assets and recycle capital into assets we believe present greater growth potential," stated Mr. Hutchison.

Acquisitions

In February 2006, the Company acquired the 500-acre Grande Lakes Orlando resort for approximately $753 million, excluding transaction costs – comprising a 584-room Ritz Carlton, a 998-room JW Marriott, a 40,000-square- foot spa and an 18-hole Greg Norman-designed championship golf course. "We believe this outstanding destination resort and the two incredible properties offer tremendous growth opportunities with strong demand generators and high barriers to new supply in the Orlando market," added John A. Griswold, president and chief operating officer.

A portion of the proceeds from the sales of the Company's interests in the Waikiki Beach Marriott Resort and Hotel del Coronado were used to acquire the Grande Lakes Orlando resort.

Other Highlights

Furthering the Company's relationship with Hilton in January 2006, three of the Company's signature properties were repositioned with Hilton management and were designated with a new elite Hilton brand, the Waldorf=Astoria Collection. The Company believes these resorts will benefit from Hilton's depth of management expertise and worldwide distribution channels, as well as from the new designation.

For fiscal year 2005, total capital expenditures invested were approximately $109 million. Significant projects that are planned or currently in-progress in 2006 include a new spa at The Arizona Biltmore in Phoenix, a new signature pool at La Quinta Resort & Club in Palm Springs, California and a new ballroom at each of the following properties: the Doral Golf Resort & Spa, in Miami, The Ritz-Carlton Orlando and the JW Marriott Desert Ridge Resort & Spa in Phoenix.

"We are pleased with the significant strides we have made in 2005 and in early 2006 in executing our strategic objectives including focusing on luxury and upper upscale assets with long-term growth potential as demonstrated by our recent purchase of The Ritz-Carlton and JW Marriott at Grande Lakes," stated Mr. Hutchison. "Taking advantage of favorable lodging fundamentals, we have effectively recycled capital from our portfolio through selective asset dispositions, such as the Waikiki Beach Marriott Resort and the interest in the venture that owned the Hotel del Coronado. We believe our ability to maximize property performance through capital reinvestment and portfolio management is evidenced by our 2005 results. We are pleased with the conversion of three of our signature resorts to Hilton's new elite brand designation, the Waldorf=Astoria Collection. Finally, we believe we have continued to enhance our financial flexibility by obtaining the revolver, refinancing the CMBS debt and fixing a significant portion of that debt at a favorable fixed rate, and reducing our overall debt through the aforementioned asset dispositions. Our 2005 operating performance, coupled with the significant transactions we have completed to further our strategic objectives, position us to look optimistically to the future of CNL Hotels & Resorts."

About CNL Hotels & Resorts, Inc. | CNL Hotels & Resorts, Inc. owns one of the most distinctive portfolios in the lodging industry. With a focus on luxury and upper-upscale properties, the company has approximately $6.0 billion in total assets with 94 hotels and resorts across North America that operate under corporate brands such as Waldorf=Astoria Collection, Ritz-Carlton, Marriott, Hilton and Hyatt. For more information, please visit / .

The Company references non-GAAP financial measures and operating measures within the meaning of the rules of the Securities and Exchange Commission, such as FFO, Adjusted FFO, Adjusted FFO per diluted share, EBITDA, and Adjusted EBITDA; and RevPAR, ADR, occupancy, and hotel and resort operating profit margin. For further information regarding these measures and why the Company believes these non-GAAP financial measures and operating measures are helpful in understanding the Company's performance, refer to the accompanying "Financial and Portfolio Information" section.

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the pending settlement of the class-action litigation, capital improvements, benefits from re-branding, change of management companies, planned use of financings and sales proceeds, future acquisitions and investments, lodging demand and group travel, momentum, enhanced liquidity position, amount of proceeds and gain, and other statements that are not historical facts, and/or statements containing words such as "anticipate(s)," "expect(s)," "intend(s)," "plan(s)," "could," "target(s)," "project(s)," "will," "believe(s)," "seek(s)," "estimate(s)" and similar expressions. These statements are based on management's current expectations, beliefs and assumptions and are subject to a number of known and unknown risks, uncertainties and other factors, including those outside of our control that could lead to actual results materially different from those described in the forward-looking statements. The Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to: change in the management approach of the management companies, the failure or adverse change in the branding strategies of the management companies, a change in the planned use of proceeds, the inability to acquire properties that meet the Company's investment objectives, changes in market conditions for hotels and resorts; continued ability to finance acquired properties in the asset backed securities markets; changes in interest rates and financial and capital markets; changes in generally accepted accounting principles and tax laws and the application thereof; the occurrence of terrorist activities or other disruptions to the travel and leisure industries; availability of attractive acquisition opportunities; and such other risk factors as may be discussed in our annual report on Form 10-K and other filings with the SEC. Such forward- looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

               CNL Hotels & Resorts, Inc. and Subsidiaries

                  CONDENSED CONSOLIDATED BALANCE SHEETS
                  (in thousands, except per share data)


                                                        December 31,
                                                  2005               2004
                 ASSETS

  Hotel and resort properties, net          $3,998,822         $4,079,844
  Investments in unconsolidated
   entities                                         –             10,248
  Assets held for sale                         425,633            973,857
  Cash and cash equivalents                     83,307             99,135
  Restricted cash                              113,981            137,161
  Receivables, net                              88,625             76,893
  Goodwill                                     513,132            491,791
  Intangible assets, net                       336,723            347,265
  Prepaid expenses and other assets             99,169             55,783
  Loan costs, less accumulated
   amortization of $38,960 and
   $17,205, respectively                        29,390             45,068

  Total assets                              $5,688,782         $6,317,045

       LIABILITIES AND STOCKHOLDERS' EQUITY

  Mortgages and other notes payable          2,599,454          2,878,583
  Liabilities associated with assets
   held for sale                               418,957            663,832
  Accounts payable and accrued expenses        175,026            166,880
  Accrued litigation expense                    34,151                 –
  Other liabilities                             25,552             28,839
  Distributions and losses in excess of
   investments in unconsolidated entities        2,600                 –
  Due to related parties                        27,000              5,885
  Member deposits                              229,809            214,246
      Total liabilities                      3,512,549          3,958,265

  Commitments and contingencies

  Minority interests                           114,860            148,825

  Stockholders' equity:
    Preferred stock, without par value.
      Authorized and unissued 1,500 shares          –                 --
    Excess shares, $.01 par value per
     share.
      Authorized and unissued 31,500 shares         –                 --
    Common stock, $.01 par value per
     share.
      Authorized 225,000 shares; issued
       158,417 and 156,167 shares,
       respectively; outstanding
       152,882 and 152,913 shares,
       respectively                              1,530              1,531
    Capital in excess of par value           2,743,073          2,740,430
    Accumulated distributions in excess
     of net income                            (689,022)          (527,790)
    Accumulated other comprehensive
     income (loss)                               5,792             (4,216)

    Total stockholders' equity               2,061,373          2,209,955
    Total liabilities and stockholders'
     equity                                 $5,688,782         $6,317,045


               CNL Hotels & Resorts, Inc. and Subsidiaries

             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                  (in thousands, except per share data)

                                        Year Ended December 31,
                                      2005       2004       2003
  Revenues:
    Room                           $795,447   $630,857   $301,593
    Food and beverage               343,121    263,517     92,064
    Other hotel and resort
     operating departments          190,683    138,891     25,441
    Rental income from
     operating leases                16,741     24,650     25,024
    Other income                      2,522      3,598      3,975
                                  1,348,514  1,061,513    448,097
  Expenses:
    Room                            188,970    153,132     71,676
    Food and beverage               234,588    191,203     70,801
    Other hotel and resort
     operating departments          116,026     88,091     16,429
    Property operations             246,207    206,353     95,925
    Repairs and maintenance          57,147     46,365     21,538
    Hotel and resort
     management fees                 40,282     26,047     11,068
    Sales and marketing              80,752     66,902     30,381
    Credit enhancement funding       (2,057)   (23,006)   (18,840)
    General operating and
     administrative                  26,130     23,668      7,937
    Litigation settlement            34,151         –         --
    State and local taxes             6,700      5,633      2,042
    Asset management fees
     to related party                27,868     26,505     12,782
    Depreciation and
     amortization                   182,995    145,872     62,102
                                  1,239,759    956,765    383,841

   Operating profit                 108,755    104,748     64,256

   Interest income                    4,077      2,512      1,781
   Interest and loan cost
    amortization                   (192,355)  (153,103)   (59,056)
   Gain on sale of common
    stock                                –      9,268         –
   Impairment of equity
    method investment                    –     (1,275)        –
   (Loss) gain on hedge
     termination                     (1,139)     3,511         –
   Transaction costs                 (5,458)   (11,521)      (154)
   Loss on extinguishment
    of debt                          (2,190)   (17,877)        –

  (Loss) income before
    equity in losses of
    unconsolidated entities,
    minority interests and
    (expense) benefit from
    income taxes                    (88,310)   (63,737)     6,827
  Equity in earnings
   (losses) of unconsolidated
   entities                          32,775    (18,469)   (23,970)
  Minority interests                 (5,517)    (3,311)       960
  Loss from continuing
   operations before (expense)
   benefit from income taxes        (61,052)   (85,517)   (16,183)
  Benefit (expense) from
   income taxes                       2,965    (27,442)      (262)

  Loss from continuing
   operations                       (58,087)  (112,959)   (16,445)
  Income from discontinued
   operations                        64,987     25,846     22,438

  Net income (loss)                  $6,900   $(87,113)    $5,993

  (Loss) earnings per share
    of common stock (basic
    and diluted):
     Continuing operations           $(0.38)    $(0.76)    $(0.19)
     Discontinued operations           0.43       0.17       0.26
                                      $0.05     $(0.59)     $0.07
  Weighted average number of
   shares of common stock
   outstanding:
     Basic and diluted              152,874    148,059     86,225



The following is a reconciliation of net income (loss) to FFO and FFO per share for the year ended December 31 (in thousands, except share and per share data):

                                     Years Ended December 31,

                          2005(a)(b)(c)  2004(a)(d)  2003    2002    2001

  Net (loss) income           $6,900   $(87,113)    5,993  $15,810  $19,328

   Adjustments:
    Effect of depreciation
     of real estate assets
     of unconsolidated
     entities                 12,682     14,223    14,117    6,496    1,499
    Effect of depreciation
     of real estate assets
     of minority interests   (12,408)   (12,263)   (6,230)  (2,624)    (774)
    Depreciation of real
     estate assets           197,043    174,214    76,714   36,217   21,818
    Gain on sale of real
     estate assets          (113,755)      (645)       –       --       –
    Effect of assumption
     of liabilities               –         --        –    3,576       –
    FFO                      $90,462    $88,416   $90,594  $59,475  $41,871
    FFO per share - basic
     and diluted (e)           $0.59      $0.60     $1.05    $1.22    $1.30
      Basic (e)              152,874    148,059    86,225   48,937   32,229
      Diluted (e)            152,874    148,059    86,225   48,937   32,229



   (a) Results of operations and therefore FFO for the years ended December
       31, 2005 and 2004, do not include $15.6 million and $16.6 million,
       respectively, in net cash flows received for member deposits.
   (b) FFO for the year ended December 31, 2005, does not exclude the
       following revenue and expenses:
         (i)  Litigation settlement of $34.2 million;
        (ii)  Loss of $23.6 million from the extinguishment of debt,
              including our share of loss from the extinguishment of debt
              related to unconsolidated entities of $7.9 million;
       (iii)  Transaction costs of $5.4 million related primarily to the
              expensing of costs related to the activities in connection
              with the pursuit of a merger with CNL Hospitality Corp.
              ("CHC"); and
        (iv)  Loss of $1.1 million on the termination of hedges.
   (c) Gain on sale of real estate assets includes $46.4 million gain
       recognized in connection with the sale of the Waikiki Beach Marriott
       Resorts owned by a partnership in which we held a 49 percent
       interest.
   (d) FFO for the year ended December 31, 2004, does not exclude the
       following revenue and expenses:
         (i)  Gain of $9.3 million from the sale of common stock;
        (ii)  Loss of $17.9 million from the extinguishment of debt;
       (iii)  Transaction costs of $11.5 million related to the write-off of
              capitalized costs related to the postponed underwritten
              offering of additional shares of common stock and
              acquisitions that we are no longer pursuing; and
        (iv)  Gain of $3.5 million on the termination of hedges.
   (e) All share and per share amounts reflect the effect of the reverse
       stock split.

The following is a reconciliation of income or (loss) from continuing operations to EBITDA, for the year ended December 31 (in thousands):

                                    Years Ended December 31,
                      2005(a)(b)     2004(a)(c)      2003     2002    2001

  (Loss) income from
    continuing
    operations         $(58,087)     $(112,959)   $(16,445)  $4,046  $6,922

   Adjustments:
    Interest and
     loan cost
     amortization       192,355        153,103      59,056   21,867  16,098
    Income tax
     expense
     (benefit)           (2,965)        27,442         262       –      --
    Depreciation and
     amortization       182,995        145,872      62,102   27,515  15,252

  EBITDA               $314,298       $213,458    $104,975  $53,428 $38,272


    (a) Results of operations and therefore EBITDA for the years ended
        December 31, 2005 and 2004 do not include $15.6 million and
        $16.6 million, respectively, in net cash flows received for member
        deposits.
    (b) EBITDA for the year ended December 31, 2005, does not exclude the
        following revenues and expenses:
         (i)  Litigation settlement of $34.2 million;
        (ii)  Loss of $1.1 million on the termination of hedges;
       (iii)  Transaction costs of $5.4 million related primarily to the
              expensing of costs related to the activities in connection
              with the pursuit of a merger with CHC;
        (iv)  Loss of $2.2 million from the extinguishment of debt; and
         (v)  Equity in earnings of unconsolidated entities of
              $32.8 million and our interest in income of minority interests
              of $5.5 million.
    (c) EBITDA for the year ended December 31, 2004, does not exclude the
        following revenues and expenses:
         (i)  Gain of $9.3 million from the sale of common stock;
        (ii)  Loss of $17.9 million from the extinguishment of debt;
       (iii)  Transaction costs of $11.5 million related to the write-off
              of capitalized costs related to the postponed underwritten
              offering of additional shares of common stock and acquisitions
              that we are no longer pursuing;
        (iv)  Equity in losses of unconsolidated entities of $18.5 million
              and our interest in income of minority interests of
              $3.3 million; and
         (v)  Gain of $3.5 million on the termination of hedges.


The following is a reconciliation of net income (loss) to Adjusted FFO and Adjusted FFO per diluted share for the year ended December 31 (in thousands, except per share data):

                                                      2005           2004
  Net income                                          $6,900       $(87,113)
  Depreciation and Amortization of
   real estate assets                                197,043        174,214
  Effect of unconsolidated entities                   12,682         14,223
  Effect of minority interest                        (12,408)       (12,263)
  Gain on sale of real estate assets                (113,755)          (645)
  Loss on extinguishment of debt of
   unconsolidated entities                             6,901             –
  Loss on extinguishment of debt
   (discontinued operations)                          13,486             –
  Income tax - Deferred tax asset
   write off                                              –         32,558
  Gain on sale of common stock                            –         (9,268)
  Impairment of equity method
   investment                                             –          1,275
  Gain (loss) on hedge termination                     1,139         (3,511)
  Transaction costs                                    5,458         11,521
  Loss on extinguishment of debt                       2,190         17,877
  Litigation settlement                               34,151             –
  Net membership cash flows                           15,600         16,600
  Adjusted funds from operations                    $169,387       $155,468
  Weighted average shares                            152,874        148,059
  Adjusted FFO per share                               $1.11          $1.05


The following is a reconciliation of loss from continuing operations to Adjusted EBITDA for the year ended December 31 (in thousands, except per share data):

                                                      2005          2004

  Loss from continuing operations                   $(58,087)    $(112,959)
  Minority interest adjustments                        5,517         3,311
  Equity method adjustments                          (32,775)       18,469
  Interest and loan cost
   amortization                                      192,355       153,103
  Depreciation and amortization                      182,995       145,872
  Income tax expense (benefit)                        (2,965)       (5,116)
  Income tax - Deferred tax asset
   write off                                              –        32,558
  Gain on sale of common stock                            –        (9,268)
  Impairment of equity method
   investment                                             –         1,275
  Gain/loss on hedge termination                       1,139        (3,511)
  Transaction costs                                    5,458        11,521
  Loss on extinguishment of debt                       2,190        17,877
  Litigation settlement                               34,151            –
  Net membership cash flows                           15,600        16,600
  Adjusted EBITDA                                   $345,578      $269,732



               CNL Hotels & Resorts, Inc. and Subsidiaries

                         PROPERTY OPERATING DATA

  Property Operating Data-Comparable Properties
  Continuing Operations (1)
  For the Three Months Ended December 31, 2005




                                                              Hotel &
                             Var.        Var.          Var.   Resort   Var.
                            (ppt.)        (%)           (%) Operating (ppt.)
            Properties       to           to            to    Profit    to
                  Occupancy 2004   ADR   2004  RevPAR  2004  Margin(3) 2004
  Consolidated
   Luxury and
    Upper
    Upscale      30  69.0%  3.6 $164.17   5.8% $113.23  11.6%  24.0%   0.5
   Upscale       27  75.5   2.1  100.07   7.6    75.54   10.7   34.1   0.6
   Midscale      25  69.9   2.7   85.21  11.0    59.58   15.5   28.4   1.0
  Total
  Consolidated   82  70.8%  3.1 $133.58   7.0%  $94.53   11.8%  25.7%  0.6
  Unconsolidated  2  75.5   6.9  191.08  11.0   144.21   22.1   31.2   7.3

  Subtotal       84  71.1%  3.3 $137.79   7.5%  $97.96   12.8%  26.3%  1.4
  Triple Net
   Lease (2)      6  68.7  (3.7) 122.58  16.2    84.19   10.2   28.7   0.7


  Total          90  71.0%  3.0 $137.03   8.0%  $97.24   12.7%  26.4%  1.4


  (1) Excludes one Property held for sale. Properties previously leased to
      third parties which were converted to the TRS structure and are now
      leased to wholly-owned TRS entities are presented as consolidated.
  (2) Our operating results include only rental revenues received from
      third-party lessees of these properties, as we do not directly
      participate in their hotel operating revenues and expenses.
  (3) Hotel and resort operating profit margin is calculated as hotel and
      resort operating profit divided by total hotel and resort revenues.



               CNL Hotels & Resorts, Inc. and Subsidiaries

                         PROPERTY OPERATING DATA

  Property Operating Data-Comparable Properties
  Continuing Operations (1)
  For the Twelve Months Ended December 31, 2005



                                                              Hotel &
                             Var.        Var.          Var.   Resort   Var.
                            (ppt.)        (%)           (%) Operating (ppt.)
            Properties       to           to            to    Profit    to
                  Occupancy 2004   ADR   2004  RevPAR  2004  Margin(3) 2004

  Consolidated
   Luxury Resort
    & Upper
    Upscale      24   73.2%  2.5  $136.47  6.9%  $99.83  10.7%  25.6%  1.8
   Upscale       24   76.2   1.7    98.67  8.3    75.17  10.8   34.0   0.3
   Midscale      25   72.3   2.4    83.09  8.6    60.06  12.4   29.5  (0.1)
  Total
  Consolidated   73   73.7%  2.3  $114.73  7.5%  $84.61  11.0%  27.7%  1.4
  Unconsolidated  2   78.4   2.4   183.40  7.5   143.80  10.8   30.1   3.3

  Subtotal       75   74.1%  2.3  $120.16  7.5%  $89.03  11.8%  28.0%  1.7
  Triple Net
   Lease (2)      6   71.5   0.0   114.17 13.6    81.58  13.6   29.7   4.0

  Total          81   73.9%  2.1  $119.80  7.9%  $88.57  11.1%  28.1%  1.8


  (1) Excludes one Property held for sale. Properties previously leased to
      third parties which were converted to the TRS structure and are now
      leased to wholly-owned TRS entities are presented as consolidated.
  (2) Our operating results include only rental revenues received from
      third-party lessees of these properties, as we do not directly
      participate in their hotel operating revenues and expenses.
  (3) Hotel and resort operating profit margin is calculated as hotel and
      resort operating profit divided by total hotel and resort revenues.



               CNL Hotels & Resorts, Inc. and Subsidiaries

                         PROPERTY OPERATING DATA

  Property Operating Data-Adjusted Comparable Properties
  Continuing Operations (1)
  For the Three Months Ended December 31, 2005


                                                             Hotel &
                             Var.        Var.          Var.  Resort   Var.
                            (ppt.)        (%)           (%) Operating (ppt.)
            Properties       to           to            to   Profit    to
                  Occupancy 2004   ADR   2004  RevPAR  2004  Margin(3) 2004

  Consolidated
   Luxury and
    Upper
    Upscale      28   69.3%  3.4  $166.34  6.4% $115.31  12.0%  26.1%  1.3
   Upscale       24   74.6   2.0    99.18  7.1    74.03  10.0   33.4  (0.1)
   Midscale      25   69.9   2.7    85.21 11.0    59.58  15.5   28.4   1.0
  Total
  Consolidated   77   70.7%  3.0  $134.00  7.3%  $94.78  12.0%  27.2%  1.1
  Unconsolidated  2   75.5   6.9   191.08 11.0   144.21  22.1   31.2   7.3

  Subtotal       79   71.1%  3.2  $138.51  7.8%  $98.46  13.0%  27.7%  1.9
  Triple Net
   Lease (2)      6   68.7  (3.7)  122.58 16.2    84.19  10.2   28.7   0.7

  Total          85   71.0%  2.9  $137.65  8.3%  $97.66  12.9%  27.8%  1.8



  (1) Excludes one Property held for sale. Properties previously leased to
      third parties which were converted to the TRS structure and are now
      leased to wholly-owned TRS entities are presented as consolidated.
  (2) Our operating results include only rental revenues received from
      third-party lessees of these properties, as we do not directly
      participate in their hotel operating revenues and expenses.
  (3) Hotel and resort operating profit margin is calculated as hotel and
      resort operating profit divided by total hotel and resort revenues.


               CNL Hotels & Resorts, Inc. and Subsidiaries

                         PROPERTY OPERATING DATA

  Property Operating Data-Adjusted Comparable Properties
  Continuing Operations (1)
  For the Twelve Months Ended December 31, 2005




                                                             Hotel &
                             Var.        Var.          Var.  Resort    Var.
                            (ppt.)        (%)           (%) Operating (ppt.)
            Properties       to           to            to   Profit     to
                  Occupancy 2004   ADR   2004  RevPAR  2004  Margin(3) 2004

  Consolidated
   Luxury Resort
    & Upper
    Upscale      28  73.1%  2.8  $165.63  5.4% $121.14   9.5%  28.9%   1.1
   Upscale       24  76.2   1.7    98.67  8.3    75.17  10.8   34.0    0.3
   Midscale      25  72.3   2.4    83.09  8.6    60.06  12.4   29.5   (0.1)
  Total
  Consolidated   77  73.7%  2.5  $134.53  6.4%  $99.09  10.0%  29.6%   1.0
  Unconsolidated  2  78.4   2.4   183.40  7.5   143.80  10.8   30.1    3.3

  Subtotal       79  74.0%  2.5  $137.92  6.5% $102.02  10.1%  29.6%   1.2
  Triple Net
   Lease (2)      6  71.5   0.0   114.17 13.6    81.58  13.6   29.7    4.0
  Total          85  73.8%  2.3  $136.66  6.8% $100.89  10.3%  29.6%   1.3



  (1) Excludes one Property held for sale. Properties previously leased to
      third parties which were converted to the TRS structure and are now
      leased to wholly-owned TRS entities are presented as consolidated.
  (2) Our operating results include only rental revenues received from
      third-party lessees of these properties, as we do not directly
      participate in their hotel operating revenues and expenses.
  (3) Hotel and resort operating profit margin is calculated as hotel and
      resort operating profit divided by total hotel and resort revenues.


               CNL Hotels & Resorts, Inc. and Subsidiaries

               NOTES TO FINANCIAL AND PORTFOLIO INFORMATION

  Non-GAAP Financial Measures and Operating Measures
Contact
Lauren Harris
VP Marketing & Communications | Hilton Grand Vacations
Phone: 407-722-3470
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