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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

[X]          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934


For the three month period ended               June 30, 2003              


OR

[  ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934 OF 1934


For the transition period from_________________to_______________


Commission file number
0-24097

                                                 CNL Hospitality Properties, Inc.                                                 
(Exact name of registrant as specified in its charter)

Maryland     59-3396369    
(State or other jurisdiction   (I.R.S. Employer  
of incorporation or organization)   Identification No.)  

450 South Orange Avenue		  
Orlando, Florida   32801  
(Address of principal executive offices)   (Zip Code)  

Registrant's telephone number		  
(including area code)   (407) 650-1000  

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  X  No ___

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes  X   No ___

The number of Shares of common stock outstanding as of August 4, 2003, was 176,801,541.

CNL HOSPITALITY PROPERTIES, INC.
AND SUBSIDIARIES


INDEX

Page
Part I.     Financial Information

               Item 1. Financial Statements

                   Condensed Consolidated Balance Sheets		 1 

                   Condensed Consolidated Statements of Earnings		 2 

                   Condensed Consolidated Statements of Stockholders' Equity		 3 

                   Condensed Consolidated Statements of Cash Flows		 5 

                   Notes to Condensed Consolidated Financial Statements		 7 

               Item 2. Management's Discussion and Analysis of Financial
                            Condition and Results of Operations 21 

               Item 3. Quantitative and Qualitative Disclosures about Market
                            Risk 44 

               Item 4. Controls and Procedures		 45 

Part II.    Other  Information  and  Signatures		 46 

               Item 1.  Legal Proceedings		 46 

               Item 2.  Changes in Securities and Use of Proceeds		 46 

               Item 3.  Defaults Upon Senior Securities		 46 

               Item 4.  Submission of Matters to a Vote of Security Holders		 46 

               Item 5.  Other Information		 46 

               Item 6.  Exhibits and Reports on Form 8–K		 46 

                   Signatures		 58 

                   Exhibits		 59 

CNL HOSPITALITY PROPERTIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)

June 30,
2003
 December 31,
2002
                                 ASSETS            
Hotel properties, less accumulated depreciation of  
   $74,209 and $56,408, respectively   $ 1,143,009   $ 988,646  
Investments in unconsolidated subsidiaries    293,922    202,554  
Cash and cash equivalents    213,190    48,993  
Restricted cash    28,962    18,822  
Receivables    17,707    11,382  
Due from related parties    5,468    3,164  
Prepaid expenses and other assets    56,415    25,177  
Loan costs, less accumulated amortization of $3,097  
   and $2,180, respectively    6,122    5,122  
    $ 1,764,795   $ 1,303,860  
                    LIABILITIES AND STOCKHOLDERS' EQUITY  

Mortgages payable and accrued interest		   $ 335,103   $ 207,206  
Other notes payable    36,853    29,739  
Line of credit    24,076    24,079  
Other liabilities    9,270    5,738  
Accounts payable and accrued expenses    17,580    9,256  
Due to related parties    4,332    2,460  
Security deposits    12,850    12,883  
       Total liabilities    440,064    291,361  

Commitments and contingencies		  

Stockholders' equity:		  
    Preferred stock, without par value  
       Authorized and unissued 3,000 shares    -    -  
    Excess shares, $.01 par value per share  
       Authorized and unissued 63,000 shares    -    -  
    Common stock, $.01 par value per share  
       Authorized 450,000 shares; issued 167,005  
       and 126,802 shares, respectively; outstanding  
       165,925 and 126,009 shares, respectively    1,659    1,260  
    Capital in excess of par value    1,474,674    1,115,745  
       Accumulated distributions in excess of net earnings    (145,352 )  (98,366 )
    Accumulated other comprehensive loss    (4,779 )  (4,316 )
    Minority interest distributions in excess of  
      contributions and accumulated earnings    (1,471 )  (1,824 )
      Total stockholders' equity    1,324,731    1,012,499  
    $ 1,764,795   $ 1,303,860  

        See accompanying notes to condensed consolidated financial statements.

-1-

CNL HOSPITALITY PROPERTIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
(in thousands, except per share data)

Quarter Ended June 30,
 Six Months Ended June 30,
2003
 2002
 2003
 2002
Revenues:                    
   Room   $ 34,842   $ 16,450   $ 67,341   $ 29,699  
   Food and beverage    6,256    692    10,880    1,470  
   Other hotel operating departments    1,146    724    2,304    1,358  
   Rental income from operating leases    7,913    11,146    15,729    22,040  
   FF&E reserve income    872    1,235    1,733    2,377  
   Interest and other income    4,337    2,059    7,530    2,509  
     55,366    32,306    105,517    59,453  
Expenses:  
    Room    7,841    4,842    15,144    8,639  
    Food and beverage    4,857    599    8,418    1,143  
    Other hotel operating departments    714    181    1,295    446  
    Property operations    8,737    3,507    17,386    6,003  
    Repairs and maintenance    2,059    387    3,907    672  
    Hotel management fees    1,992    720    3,445    1,375  
    Sales and marketing    2,699    885    5,461    1,522  
    Interest and loan cost amortization    5,953    4,884    10,906    9,159  
    General operating and administrative    2,629    915    4,407    2,785  
    Asset management fees to related  
       party    2,640    1,694    4,983    3,075  
    Depreciation and amortization    9,464    6,839    17,801    12,891  
     49,585    25,453    93,153    47,710  
Earnings before equity in loss of  
    unconsolidated subsidiaries and  
    minority interest    5,781    6,853    12,364    11,743  

Equity in loss of unconsolidated		  
    subsidiaries    (4,753 )  (2,032 )  (4,842 )  (3,202 )

Minority interest		    (45 )  (64 )  (102 )  (133 )
Net earnings   $ 983   $ 4,757   $ 7,420   $ 8,408  
Earnings per share of common stock:  
      Basic and diluted   $ 0.01   $ 0.05   $ 0.05   $ 0.10  
Weighted average number of shares of  
    common stock outstanding:  
      Basic and diluted    153,668    89,490    143,807    85,234  

        See accompanying notes to condensed consolidated financial statements.

-2-

CNL HOSPITALITY PROPERTIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Six Months Ended June 30, 2003 and Year Ended December 31, 2002
    (UNAUDITED)   (in thousands, except per share data)

Common Stock
 Capital in Accumulated
distributions		 Accumulated
other		 Minority interest
distributions
in excess of
Number of
shares
 Par
value
 excess of
par value
 in excess of
net earnings
 comprehensive
loss
 contr. and
accum. earnings
 Total
 Comprehensive
income
Balance at December 31, 2001      77,358   $ 773   $ 681,152   $ (39,959 ) $ (1,190 ) $ (2,900 ) $ 637,876    -  

Subscriptions received for common		  
    stock through public offerings  
    and distribution reinvestment plan    48,911    489    488,622    -    -    -    489,111    -  

Retirement of common stock		    (260 )  (2 )  (2,389 )  -    -    -    (2,391 )  -  

Stock issuance costs		    -    -    (51,640 )  -    -      (51,640 )

Net earnings		    -    -    -    15,810    -        15,810    15,810  

Minority interest distributions in		  
    excess of contributions and  
    accumulated earnings    -    -    -    -    -    1,076    1,076    -  

Current period adjustments to		  
    recognize changes in value of  
    cash flow hedges of equity investees    -    -    -    -    (3,126 )  -    (3,126 )  (3,126 )
Total comprehensive income    -    -    -    -    -    -    -   $ 12,684  
Distributions declared and paid  
    ($.78 per share)    -    -    -    (74,217 )  -    -    (74,217 )
Balance at December 30, 2002    126,009   $ 1,260   $ 1,115,745   $ (98,366 ) $ (4,316 ) $ (1,824 ) $ 1,012,499  

        See accompanying notes to condensed consolidated financial statements.

-3-

CNL HOSPITALITY PROPERTIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY — CONTINUED
Six Months Ended June 30, 2003 and Year Ended December 31, 2002
    (UNAUDITED)   (in thousands, except per share data)

Common Stock
 Capital in Accumulated
distributions		 Accumulated
other		 Minority interest
distributions
in excess of
Number of
shares
 Par
value
 excess of
par value
 in excess of
net earnings
 comprehensive
loss
 contr. and
accum. earnings
 Total
 Comprehensive
income

Balance at December 31, 2002		      126,009   $ 1,260   $ 1,115,745   $ (98,366 ) $ (4,316 ) $ (1,824 ) $ 1,012,499   $ -  

Subscriptions received for common		  
   &nb