Rule 424(b)(3)
No. 333-9943
CNL HOSPITALITY PROPERTIES, INC.
(formerly known as CNL American Realty Fund, Inc.)
This Supplement is part of, and should be read in conjunction with, the
Prospectus dated October 6, 1998. Capitalized terms used in this Supplement have
the same meaning as in the Prospectus unless otherwise stated herein.
SUMMARY
RECENT DEVELOPMENTS
As described in "The Offering" section of the Prospectus, the Board of
Directors may determine to engage in future offerings of Common Stock. In
connection therewith, the Board of Directors has approved a secondary offering
by the Company (the "Secondary Offering") of 25,000,000 Shares, with an
additional 2,500,000 Shares being reserved for the Reinvestment Plan in
connection with the Secondary Offering. The Secondary Offering is currently
anticipated to be at the same price and on substantially the same terms as this
offering. The Company will not commence the Secondary Offering until after the
completion of this offering.
While the Company may currently invest in both restaurant and hotel
Properties, management believes that over time the Company will focus its
Property investments exclusively on hotel Properties. Therefore, the Company
currently anticipates that any net offering proceeds received from the Secondary
Offering will be invested in hotel Properties or, to a lesser extent, to make
Mortgage Loans to hotel operators. The Company believes that the net proceeds
received from the Secondary Offering and any additional offerings will enable
the Company to continue to grow and take advantage of acquisition opportunities
until such time, if any, that the Company Lists on a national exchange. Under
the Company's Articles of Incorporation, if the Company does not List by
December 31, 2007, it will commence an orderly liquidation of its Assets, and
the distribution of the proceeds therefrom to its stockholders.
November 23, 1998 Prospectus Dated October 6, 1998
