Posted
Great Wolf is selling a 70% interest in its Sandusky and Dells resorts to CNL Income Properties Inc. in order to generate cash and "recycle investment capital for future growth." The company will continue to operate and license its brand to the new majority owner of the two resorts.
Read more from Crain's Cleveland Business.
Wonder what's going on?
Seriously, though, if that were the issue than wouldn't they just sell them outright and license the brand, instead of retaining a 30% interest? Although, this does mean that if they go under or even underperform to expectations (presumably due to competition) they can claim that it wasn't their fault, because they weren't in charge, etc.
Or maybe we're analyzing things too much. :)
A lot of hotel companies (who aren't set up as REITs) use this strategy to help fund continued growth.
Joel
*** This post was edited by JZarley 10/8/2005 10:13:36 AM ***
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