Press Release January 19, 2007

CNL Hotels & Resorts Acquired by Morgan Stanley Real Estate in $6.6 Billion Transaction

Jan. 19, 2007 — CNL Hotels & Resorts Inc. (CHR), the nation's second largest hotel real estate investment trust, announced today that it has signed a definitive agreement to be acquired by Morgan Stanley Real Estate. The transaction provides that funds managed by Morgan Stanley Real Estate will acquire CHR for $20.50 per share in cash, representing an aggregate purchase price of approximately $6.6 billion for all of CHR's outstanding common stock and the assumption of CHR's outstanding debt.

Upon completion of this transaction, Morgan Stanley Real Estate will own a collection of the country's premier iconic lodging assets. The portfolio is comprised of eight luxury properties located in six destination markets throughout the United States.

Goodwin Procter attorneys Gil Menna, Mark Opper, Ed Glazer, Kelsey Lemaster, Edward Matson Sibble and Christopher Barker represented Morgan Stanley Real Estate in this transaction.