CNL Sells its Hotels
CNL has agreed to sell its hotels to Morgan Stanley. The sale price is $20.50 per share, which due to a reverse stock split CNL did in advance of an aborted IPO several years ago, is about what investors paid for their shares. (I think this is what happened.) This appears good for CNL and for investors and a positive end to an ugly part of CNL's history. The IPO failed, in part, because CNL had overvalued its management company as part of the transaction. CNL was expecting an IPO price over $20 a share but pulled the deal when it was priced at $12 to $14.