CNL Reports Net $6.9 mil for 2005

Ended Year with 90 Properties

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. October 14, 2008

ORLANDO, FL, April 5, 2006. 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.

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."