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 28, 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 28, 2000, will be reported in a subsequent
Supplement.
RECENT DEVELOPMENTS
The Company recently entered into commitments to acquire 13 additional
properties, including two WyndhamSM Hotels. Below is a summary of the proposed
properties, the date the hotel located on the property commenced operations and
the number of guest rooms or suites for each property:
<TABLE>
<CAPTION>
Number of
Property Date Opened Guest Rooms/Suites
- ------------------------------------------------------------- --------------- -----------------------
<S> <C>
Wyndham - Billerica, MA 05/99 196 rooms, 14 suites
Wyndham - Denver, CO 11/99 162 rooms, 18 suites
Courtyard(R)by Marriott(R)- Palm Desert, CA 09/99 151 rooms
Residence Inn(R)by Marriott(R)- Palm Desert, CA 02/99 130 suites
Courtyard by Marriott - Alpharetta, GA 11/99 148 rooms, 6 suites
Courtyard by Marriott - Overland Park, KS (1) 168 rooms
Residence Inn by Marriott - Cottonwood, UT 08/99 144 suites
SpringHill Suites(R)by Marriott(R)- Centreville, VA (1) 136 suites
SpringHill Suites by Marriott - Charlotte, NC (1) 136 suites
SpringHill Suites by Marriott - Raleigh/Durham, NC (1) 120 suites
TownePlace Suites(R)by Marriott(R)- Tewksbury, MA 07/99 95 suites
TownePlace Suites by Marriott - Mt. Laurel, NJ 11/99 95 suites
TownePlace Suites by Marriott - Scarborough, ME 06/99 95 suites
- --------------
</TABLE>
(1) Hotel under construction
As of April 28, 2000, the Company owned interests in 11 Properties and
had commitments to acquire an additional 19 properties. All of the Properties
owned by the Company are leased on a long-term triple net basis to operators of
national hotel chains.
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 28, 2000, the Company had received aggregate subscriptions
for 35,329,188 Shares totalling $353,291,879 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 28, 2000, net proceeds to the Company
from its offerings of Shares
May 5, 2000 Prospectus Dated March 30, 2000
<PAGE>
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 $313,800,000. 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 $153,000,000
available to invest in Properties and Mortgage Loans.
PENDING INVESTMENTS
As of April 28, 2000, the Company had initial commitments to acquire 19
hotel properties. These properties are four Courtyard by Marriott properties
(one in each of Alpharetta, Georgia; Orlando, Florida; Overland Park, Kansas and
Palm Desert, California), one Fairfield Inn(R) by Marriott(R) (in Orlando,
Florida), five SpringHill Suites by Marriott (one in each of Centreville,
Virginia; Charlotte, North Carolina; Gaithersburg, Maryland; Orlando, Florida
and Raleigh/Durham, North Carolina), three Residence Inn by Marriott properties
(one in each of Merrifield, Virginia; Palm Desert, California and Cottonwood,
Utah), four TownePlace Suites by Marriott (one in each of Tewksbury,
Massachusetts; Mt. Laurel, New Jersey; Newark, California and Scarborough,
Maine) 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.
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>
Estimated Purchase Lease Term and
Property Price Renewal Options
- ------------------------------------ ------------------ ----------------------
<S> <C>
Courtyard by Marriott (2) 15 years; two ten-year
Orlando, FL (1) renewal options
(the "Courtyard Little Lake Bryan
Property")
Hotel under construction
Fairfield Inn by Marriott (2) 15 years; two ten-year
Orlando, FL (1) renewal options
(the "Fairfield Inn Little Lake Bryan
Property")
Hotel under construction
SpringHill Suites by Marriott (2) 15 years; two ten-year
Orlando, FL (1) renewal options
(the "SpringHill Suites Little Lake
Bryan Property")
Hotel under construction
Residence Inn by Marriott $18,816,000 15 years; two ten-year
Merrifield, VA (3) renewal options
(the "Residence Inn Merrifield Property")
Hotel under construction
SpringHill Suites $15,215,000 15 years; two ten-year
Gaithersburg, MD (3) renewal options
(the "SpringHill Suites Gaithersburg
Property")
Hotel under construction
TownePlace Suites $13,600,000 15 years; two ten-year
Newark, CA (3)(4) renewal options
(the "TownePlace Suites Newark Property")
Hotel under construction
Minimum Annual
Rent Percentage Rent
-------------------------- ---------------------------------
10% of the Company's total for each lease year after the
cost to purchase the second lease year, 7% of revenues
property in excess of revenues for the
second lease year
10% of the Company's total for each lease year after the
cost to purchase the second lease year, 7% of revenues
property in excess of revenues for the
second lease year
10% of the Company's total for each lease year after the
cost to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total for each lease year after the
cost to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total for each lease year after the
cost to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Estimated Purchase Lease Term and
Property Price Renewal Options
- ---------------------------------- ------------------ -------------------------
<S> <C>
Wyndham Hotel $25,092,000 15 years; three five-year
Billerica, MA (5) renewal options
(the "Wyndham Billerica Property")
Existing hotel
Wyndham Hotel $18,353,000 15 years; three five-year
Denver, CO (5) renewal options
(the "Wyndham Denver Property")
Existing hotel
Courtyard by Marriott $13,510,000 15 years; two ten-year
Palm Desert, CA (3) renewal options
(the "Courtyard Palm
Desert Property")
Existing hotel
Residence Inn by Marriott $16,740,000 15 years; two ten-year
Palm Desert, CA (3) renewal options
(the "Residence Inn
Palm Desert Property")
Existing hotel
Courtyard by Marriott $13,877,000 15 years; two ten-year
Alpharetta, GA (8) renewal options
(the "Courtyard Alpharetta Property")
Existing hotel
Courtyard by Marriott $15,790,000 15 years; two ten-year
Overland Park, KS (8) renewal options
(the "Courtyard Overland
Park Property")
Hotel under construction
Minimum Annual
Rent Percentage Rent
-------------------------------- ------------------------------------
10% of the Company's total cost (7)
to purchase the property;
increases to 10.25% after the
first lease year, 10.50% after
the second lease year and every
year thereafter during the lease
term (6)
10% of the Company's total cost (7)
to purchase the property;
increases to 10.25% after the
first lease year, 10.50% after
the second lease year and every
year thereafter during the lease
term (6)
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Estimated Purchase Lease Term and
Property Price Renewal Options
- ---------------------------------- -------------------- ------------------------
<S> <C>
Residence Inn by Marriott $14,573,000 15 years; two ten-year
Cottonwood, UT (8) renewal options
(the "Residence Inn
Cottonwood Property")
Existing hotel
SpringHill Suites by Marriott $11,414,000 15 years; two ten-year
Centreville, VA (8) renewal options
(the "SpringHill Suites
Centreville Property")
Hotel under construction
SpringHill Suites by Marriott $11,773,000 15 years; two ten-year
Charlotte, NC (8) renewal options
(the "SpringHill Suites
Charlotte Property")
Hotel under construction
SpringHill Suites by Marriott $8,822,000 15 years; two ten-year
Raleigh/Durham, NC (8) renewal options
(the "SpringHill Suites
Raleigh/Durham Property")
Hotel under construction
TownePlace Suites by Marriott $9,050,000 15 years; two ten-year
Tewksbury, MA (8) renewal options
(the "TownePlace Suites
Tewksbury Property")
Existing hotel
TownePlace Suites by Marriott $7,711,000 15 years; two ten-year
Mt. Laurel, NJ (8) renewal options
(the "TownePlace Suites
Mt. Laurel Property")
Existing hotel
Minimum Annual
Rent Percentage Rent
---------------------------------- ----------------------------------
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property second lease year, 7% of revenues
in excess of revenues for the
second lease year
10% of the Company's total cost for each lease year after the
to purchase the property first lease year, 7% of revenues
in excess of proforma revenues for
the second lease year
10% of the Company's total cost for each lease year after the
to purchase the property first lease year, 7% of revenues
in excess of proforma revenues for
the second lease year
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Estimated Purchase Lease Term and
Property Price Renewal Options
- ----------------------------------- ------------------ ----------------------
<S> <C>
TownePlace Suites by Marriott $7,160,000 15 years; two ten-year
Scarborough, ME (8) renewal options
(the "TownePlace Suites
Scarborough Property")
Existing hotel
Minimum Annual
Rent Percentage Rent
------------------------------- ---------------------------------
10% of the Company's total cost for each lease year after the
to purchase the property first lease year, 7% of revenues
in excess of proforma revenues for
the second lease year
</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, the TownePlace Suites Newark, the Courtyard Palm Desert
and the Residence Inn Palm Desert 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.
(8) The leases for the Courtyard Alpharetta, the Courtyard Overland Park,
the Residence Inn Cottonwood, the SpringHill Suites Centreville, the
SpringHill Suites Charlotte, the SpringHill Suites Raleigh/Durham, the
TownePlace Suites Tewksbury, the TownePlace Suites Mt. Laurel and the
TownePlace Suites Scarborough Properties are expected to be with the
same unaffiliated lessee.
<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.
