Rule 424(b)(3)
No. 333-67787
CNL HOSPITALITY PROPERTIES, INC.
This Supplement is part of, and should be read in conjunction with, the
Prospectus dated March 30, 2000. Capitalized terms used in this Supplement have
the same meaning as in the Prospectus unless otherwise stated herein.
Information as to proposed properties for which the Company has
received initial commitments is presented as of April 18, 2000, and all
references to commitments should be read in that context. Proposed properties
for which the Company receives initial commitments, as well as property
acquisitions that occur after April 18, 2000, will be reported in a subsequent
Supplement.
RECENT DEVELOPMENTS
The Company recently entered into a commitment to acquire two WyndhamSM
Hotels located in Billerica, Massachusetts and Denver, Colorado. The Billerica
property opened in May 1999 and has 210 guest rooms, including 14 suites, and
the Denver property opened in November 1999 and has 180 guest rooms, including
18 suites.
THE OFFERINGS
Upon completion of its Initial Offering on June 17, 1999, the Company
had received aggregate subscriptions for 15,007,264 Shares totalling
$150,072,637 in Gross Proceeds, from 5,567 stockholders, including 7,264 Shares
($72,637) issued pursuant to the Reinvestment Plan. Following the completion of
the Initial Offering, the Company commenced this offering of up to 27,500,000
Shares. As of April 18, 2000, the Company had received aggregate subscriptions
for 34,834,773 Shares totalling $348,347,729 in Gross Proceeds, including 74,863
Shares ($748,625) issued pursuant to the Reinvestment Plan from its Initial
Offering and this offering. As of April 18, 2000, net proceeds to the Company
from its offerings of Shares and capital contributions from the Advisor, after
deduction of Selling Commissions, marketing support and due diligence expense
reimbursement fees and Organizational and Offering Expenses totalled
approximately $309,300,000. The Company has used Net Offering Proceeds to
invest, directly or indirectly, approximately $136,500,000 in 11 hotel
Properties, to pay $7,120,800 as deposits on seven additional hotel Properties,
to redeem approximately 27,490 Shares of Common Stock for $252,955 and to pay
approximately $17,000,000 in Acquisition Fees and certain Acquisition Expenses,
leaving approximately $148,400,000 available to invest in Properties and
Mortgage Loans.
PENDING INVESTMENTS
As of April 18, 2000, the Company had initial commitments to acquire,
directly or indirectly, eight hotel properties. These properties are one
Courtyard(R) by Marriott(R) (in Orlando, Florida), one Fairfield Inn(R) by
Marriott(R) (in Orlando, Florida), two SpringHill Suites(R) (one in each of
Orlando, Florida and Gaithersburg, Maryland), one Residence Inn(R) by
Marriott(R) (in Merrifield, Virginia), one TownePlace Suites(R) (in Newark,
California) and two Wyndham Hotels (one in each of Billerica, Massachusetts and
Denver, Colorado). The acquisition of each of these properties is subject to the
fulfillment of certain conditions. There can be no assurance that any or all of
the conditions will be satisfied or, if satisfied, that one or more of these
properties will be acquired by the Company. If acquired, the leases of these
properties are expected to be entered into on substantially the same terms
described in the section of the Prospectus entitled "Business Description of
Property Leases." In order to acquire all of these properties, the Company must
obtain additional funds through the receipt of additional offering proceeds
and/or debt financing.
April 25, 2000 Prospectus Dated March 30, 2000
<PAGE>
Leases. Set forth below are summarized terms expected to apply to the
leases for each of the properties. More detailed information relating to a
property and its related lease will be provided at such time, if any, as the
property is acquired.
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Estimated Purchase Lease Term and Minimum Annual
Property Price Renewal Options Rent Percentage Rent
- -------- ----- --------------- ---- ---------------
Courtyard by Marriott (2) 15 years; two ten-year 10% of the Company's for each lease year after the
Orlando, FL (1) renewal options total cost to purchase second lease year, 7% of
(the "Courtyard Little Lake the property revenues in excess of revenues
Bryan Property") for the second lease year
Hotel under construction
Fairfield Inn by Marriott (2) 15 years; two ten-year 10% of the Company's for each lease year after the
Orlando, FL (1) renewal options total cost to purchase second lease year, 7% of
(the "Fairfield Inn Little Lake the property revenues in excess of revenues
Bryan Property") for the second lease year
Hotel under construction
SpringHill Suites by Marriott (2) 15 years; two ten-year 10% of the Company's for each lease year after the
Orlando, FL (1) renewal options total cost to purchase second lease year, 7% of
(the "SpringHill Suites Little the property revenues in excess of revenues
Lake Bryan Property") for the second lease year
Hotel under construction
Residence Inn by Marriott $18,816,000 15 years; two ten-year 10% of the Company's for each lease year after the
Merrifield, VA (3) renewal options total cost to purchase second lease year, 7% of
(the "Residence Inn Merrifield the property revenues in excess of revenues
Property") for the second lease year
Hotel under construction
SpringHill Suites $15,215,000 15 years; two ten-year 10% of the Company's for each lease year after the
Gaithersburg, MD (3) renewal options total cost to purchase second lease year, 7% of
(the "SpringHill Suites the property revenues in excess of revenues
Gaithersburg Property") for the second lease year
Hotel under construction
TownePlace Suites $13,600,000 15 years; two ten-year 10% of the Company's for each lease year after the
Newark, CA (3)(4) renewal options total cost to purchase second lease year, 7% of
(the "TownePlace Suites Newark the property revenues in excess of revenues
Property") for the second lease year
Hotel under construction
<PAGE>
Estimated Purchase Lease Term and Minimum Annual
Property Price Renewal Options Rent Percentage Rent
- -------- ----- --------------- ---- ---------------
Wyndham Hotel $25,092,000 15 years; three five-year 10% of the Company's total cost to (7)
Billerica, MA (5) renewal options purchase the property; increases
(the "Wyndham Billerica to 10.25% after the first lease
Property") year, 10.50% after the second
Existing Hotel lease year and every year
thereafter during the lease term
(6)
Wyndham Hotel $18,353,000 15 years; three five-year 10% of the Company's total cost to (7)
Denver, CO (5) renewal options purchase the property; increases
(the "Wyndham Denver to 10.25% after the first lease
Property") year, 10.50% after the second
Existing Hotel lease year and every year
thereafter during the lease term
(6)
</TABLE>
- ------------------------------------
FOOTNOTES:
(1) The leases for the Courtyard Little Lake Bryan, the Fairfield Inn
Little Lake Bryan and the SpringHill Suites Little Lake Bryan
Properties are expected to be with the same unaffiliated lessee.
(2) The anticipated aggregate purchase price for the Courtyard Little Lake
Bryan, Fairfield Inn Little Lake Bryan and SpringHill Suites Little
Lake Bryan Properties is approximately $100 million.
(3) The leases for the Residence Inn Merrifield, the SpringHill Suites
Gaithersburg and the TownePlace Suites Newark Properties are expected
to be with the same unaffiliated lessee.
(4) The Company may be obligated to fund up to an additional $1 million in
construction costs relating to this Property.
(5) The leases for the Wyndham Billerica and the Wyndham Denver Properties
are expected to be with the same unaffiliated lessee.
(6) In connection with the Wyndham Billerica and the Wyndham Denver
Properties, the Company may be required to make an additional payment
(the "Earnout Amount") of up to a total of $2,471,500 if certain
earnout provisions are achieved within three years after the
acquisition date. Thereafter, the Company will no longer be obligated
to make any payments under the earnout provision. The Earnout Amount is
equal to the difference between the earnings before interest, taxes,
depreciation and amortization expense adjusted by the earnout factor
(7.33), and the initial purchase price. Rental income will be adjusted
upward in accordance with the lease agreements for any amount paid.
(7) Percentage rent for the Wyndham Billerica and the Wyndham Denver
Properties shall equal 10% of the aggregate amount of all revenues
exceeding $13,683,000 per annum.
<PAGE>
Wyndham Billerica Property. The Wyndham Billerica Property, which
opened in May 1999, is a Wyndham Hotel with a new prototype design located in
Billerica, Massachusetts, a suburb of Boston. The Wyndham Billerica Property has
210 guest rooms, including 14 suites, 4,346 square feet of meeting space, a
64-seat restaurant, a 33-seat lounge, a library, an indoor pool and a fitness
center and spa. The property is located within Technology Park, a 1.8 million
square-foot commercial park. The hotel is within a four-mile radius of
approximately 3.7 million square feet of office, light industrial, and research
and development space. The property is accessible by a variety of local and
interstate highways, and is less than 25 miles from Logan International Airport.
The Billerica area is home to a number of high-technology companies and serves
as the world headquarters for a major computer technology company. Billerica is
approximately 26 miles from Boston and its numerous historical sites, including
The Freedom Trail, Paul Revere's House, Old North Church, Faneuil Hall and the
newly restored U.S.S. Constitution, the U.S. Navy's oldest commissioned ship.
Wyndham Denver Property. The Wyndham Denver Property, which opened in
November 1999, is a Wyndham Hotel with a new prototype design located in Denver,
Colorado. The Wyndham Denver Property has 180 guest rooms, including 18 suites,
4,040 square feet of meeting space, a 64-seat restaurant, a 33-seat lounge, a
library, an indoor pool and a fitness center and spa. The property is located
within the Denver Tech Center, a 12 million square-foot high-technology park
with approximately 1,000 companies and more than 30,000 employees. The center is
currently under expansion and several major companies are acquiring additional
office space near the center. Four other office parks are within seven miles of
the hotel, including Greenwood Plaza, Inverness Business Park, Waterview
Development and Meridian International Business Center. A fifth office park,
ParkRidge Corporate Center, is currently under construction. In total, more than
21 million square feet of office space is within a seven-mile radius of the
hotel. The property is accessible by a variety of local and interstate highways,
and is approximately 25 miles from Denver International Airport. According to
Hospitality Valuation Services (HVS) data, Denver is known as a hub for cable
operations and the telecommunications industry. Several cable, satellite
broadcast and telephone companies, as well as investment firms, have facilities
in the southern region of Denver.
Wyndham Brands. The brand, Wyndham Hotels & Resorts(R), is part of
Wyndham International's portfolio of lodging brands. According to Wyndham's
company overview, Wyndham International is one of the world's largest
hospitality and lodging companies serving business and leisure travelers with
hotels and resorts located in major metropolitan business centers and leading
vacation markets in the United States, Canada, the Caribbean, Mexico and Europe.
According to Wyndham data, as of February 2, 2000, Wyndham International owns,
leases, manages and franchises more than 300 hotels totalling more than 70,000
guest rooms.
