Hilton, CNL Buy Five Hotels in Venture

Hilton Hotels Corp. said it purchased five hotels as part of a $402-million venture with CNL Hospitality Corp.

Hilton and CNL, a unit of Orlando, Fla.-based CNL Financial Group Inc., paid $249 million in cash for the hotels.

Three were sold by real estate investor Strategic Hotel Capital. Hilton contributed the Hilton Rye Town in Rye Brook, N.Y., and CNL its Doubletree Crystal City hotel in Arlington, Va., to the venture, a Hilton spokesman said.

The Strategic properties are Embassy Suites hotels in Arlington, Va.; Santa Clara, Calif.; and Orlando, Fla. Hilton will manage all five hotels.

Shares of Hilton, based in Beverly Hills, rose 47 cents to $11.60 on the New York Stock Exchange.