ANNAPOLIS, Md.--July 8, 2011 - Chesapeake Lodging Trust (NYSE: CHSP) announced today that it has acquired the 171-room Hotel Adagio located in San Francisco, California for a purchase price of $42.25 million, or approximately $247,000 per key. The Company funded the acquisition with a borrowing under its revolving credit facility. The Company has assumed the existing management agreement with Joie de Vivre Hospitality to continue operating the hotel as a full-service, upper upscale boutique property.
James L. Francis, Chesapeake’s President and Chief Executive Officer, stated, “We are excited to have acquired our second asset in the highly sought after San Francisco lodging market. With its desirable location in the prominent Union Square area, our planned full repositioning of the hotel, and the boutique operating expertise of Joie de Vivre, the Hotel Adagio is a tremendous opportunity and valuable addition to our growing portfolio.”
Hotel Adagio, located at 550 Geary Street, is a 16-story, historic hotel originally constructed in 1929. The property is located in Union Square, the heart of San Francisco’s world-renowned shopping and entertainment district. The hotel features large guestrooms that average over 400 square feet, approximately 2,000 square feet of dedicated meeting space with catering capacity to expand to over 5,000 square feet, a large 24-hour fitness center and a 24-hour business center. The hotel contains an adjacent parking facility which offers valet services. Food and beverage is provided in Bar Adagio, comprised of three separate dining and lounge areas, which features small plates and handcrafted cocktails, ideal for pre- and post-theater dining. The hotel is in close proximity to numerous retail outlets, restaurants, art galleries, entertainment and theater venues, including the Geary Theater and the Curran Theater, the Moscone Convention Center, Chinatown, and the Financial District, all of which provide numerous business and leisure demand generators.
“We are excited about the repositioning plans for the property,” continued Mr. Francis. “We will give the Hotel Adagio a new identity that draws upon its outstanding location in Union Square, the unique San Francisco culture and demand generators that surround this high-quality hotel.”
ABOUT CHESAPEAKE LODGING TRUST
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service and extended-stay hotels in urban settings or unique locations in the United States. The Company owns ten hotel properties with an aggregate of 2,777 rooms in four states and the District of Columbia. Additional information can be found on the Company’s website at www.chesapeakelodgingtrust.com.
ABOUT JOIE DE VIVRE HOSPITALITY
Founded in 1987 by entrepreneur Chip Conley, San Francisco-based Joie de Vivre (www.jdvhotels.com) is known for creating some of the most innovative hospitality services and products and designing one-of-a-kind boutique hotels, restaurants and spas. Geolo Capital (www.geolo.com), a private equity firm controlled by the family office of John Pritzker, acquired a majority interest in Joie de Vivre in 2010. The firm specializes in hospitality investments and is capitalizing the boutique hotel company’s national expansion. Joie de Vivre operates more than 30 boutique hotels and was awarded the highest customer satisfaction ranking of any American hotel brand in the Upper Upscale category by the 2010 Market Metrix Hospitality Index (MMHI). The MMHI is the largest and most in-depth measure of hotel, airline and car rental performance available today in the hospitality industry.