ANNAPOLIS, Md.--Jan. 31, 2012-- Chesapeake Lodging Trust
(NYSE: CHSP) (the "Trust") announced today that it has entered into a
definitive agreement to acquire the 185-room Hyatt Place New York
Midtown South, located in New York, New York, for a purchase
price of $76.5 million, or approximately $414,000
per key. The hotel is currently under development at 52-54 West 36th
Street, between 5th Avenue and 6th Avenue.
Closing on the proposed acquisition is expected to occur following
completion of the hotel by the seller, anticipated in the third quarter
of 2012, and satisfaction of customary closing conditions. In
conjunction with the proposed acquisition, the Trust has agreed to
provide the seller $6.5 million in bridge financing to
facilitate the completion of the development of the hotel. The Trust
intends to enter into a management agreement with Real
Hospitality Group, the operator of the Trust’s other hotel in New York located in
Midtown on 31st Street.
James L. Francis, Chesapeake’s President and
Chief Executive Officer, stated, “We are very pleased to announce the
definitive agreement to acquire our second hotel in the highly desired
midtown area of Manhattan
at a very compelling per key price. Similar to the Holiday Inn
New York City Midtown – 31st Street, which we acquired
in late December 2011 and opened on January 19th,
we expect the Hyatt Place to ramp-up very quickly
given the robust demand in Manhattan, the strength of the
Hyatt brand, and our operator’s extensive experience managing hotels in
New York City.
Following this acquisition, approximately 8% of our portfolio’s hotel
rooms will be based in Midtown Manhattan."
Upon completion, the 25-story Hyatt Place New York Midtown
South will contain 185 attractively designed guestrooms with the most
current Hyatt décor package, ideal for both business and leisure
travelers to the dynamic midtown marketplace. Each room will contain a
central HVAC system and upgraded stylish bathrooms with glass-enclosed
showers and granite vanity tops. All rooms feature a 42” high
definition flat panel television, the plush Hyatt Grand Bed,
state-of-the-art media and work center, refrigerator, wardrobe and
comfortable seating areas. The hotel room mix currently consists of 27
double-bedded rooms and 158 king-bedded rooms, including four
king-bedded rooms on the top floor with access to adjacent private
terraces.
The hotel lobby Gallery is a warm, stylish and contemporary
area with distinctive architecture and furnishings that create a
relaxing, casual atmosphere, perfect for recapping the day’s events.
The Gallery features a check-in kiosk, intimate Bakery Café with
fresh snacks or entrees, specialty coffee drinks and full wine and
cocktail bar, a TV den featuring a variety of comfortable gathering
spaces and an e-room with complimentary computer and internet access
and printing.
Mr. Francis continued, “This acquisition furthers our
strategic relationship with Hyatt Hotels through ownership
of the first Hyatt Place property in Manhattan. This
brand is the perfect fit for New York and the blended lifestyle of
work and play.”
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 Trust owns 12 hotels with an aggregate of 3,516 rooms in six states
and the District of
Columbia. Additional information can be found on the Trust’s
website at www.chesapeakelodgingtrust.com.
Certain statements and assumptions in this press
release contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties. When we use the
words "will likely result," "may," "anticipate," "estimate," "should,"
"expect," "believe," "intend," or similar expressions, we intend to
identify forward-looking statements. Such forward-looking statements
include, but are not limited to, the expectation that the acquisition
described will be consummated and within the anticipated timetable and
that the ramp-up of the hotel following the acquisition will occur
quickly, as well as the current plans for the hotel’s configuration and
the appointment of the guestrooms and lobby. Such statements are
subject to numerous assumptions and uncertainties, many of which are
outside Chesapeake Lodging
Trust's control. The Trust undertakes no obligation to
publicly release the result of any revisions to these
forward-looking statements that may be made to reflect any future
events or circumstances, except as required by law.