ANNAPOLIS, Md.-September 10, 2012 --Chesapeake Lodging Trust (NYSE: CHSP) (the "Trust") announced today that it has acquired the 429-room Hyatt Regency Mission Bay Spa and Marina, located in San Diego, California for a purchase price of $62.0 million, or approximately $144,500 per key. The Trust funded the acquisition with available cash on hand and a borrowing under its revolving credit facility. The Trust assumed the existing management agreement with Hyatt Hotels Corporation.
James L. Francis, the Trust’s President and Chief Executive Officer,
stated, “We are thrilled to expand our strategic relationship with
Hyatt and purchase our second high-quality San Diego hotel, which is
located directly on the bay with spectacular ocean views. With the
previous owner’s extensive renovation completed in 2007 and our planned
$6 million softgood refresh, the Hyatt is the best positioned asset
within the immediate marketplace.”
The Hyatt Regency Mission Bay Spa and Marina, located at 1441 Quivira
Road, includes many unique service elements on its 19 acres of
prominent waterfront footprint. The hotel’s 429 rooms include 137 large
suites among its four guestroom buildings, with the remaining rooms
averaging a generous 400 square feet. The property features a 187 slip,
97%-occupied marina, the full-service Blue Marble spa, multiple food
and beverage outlets including the award winning Red Marlin with
360-degree bay views, three lagoon shaped pools each with its own
120-foot water slide, exclusive water boat taxi service to Sea World’s
private VIP entrance, and over 37,000 square feet of meeting space.
“The many features of the property, including the spa, marina and the
pools, are remarkable,” continued Mr. Francis. “Combining the strong
leadership and power of the Hyatt brand, the growing strength of the
San Diego marketplace, and our compelling acquisition price, this hotel
is an excellent fit for our expanding portfolio of high-quality hotels
in the top lodging markets across the United States.”
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 hotels in urban settings or
unique locations in the United States. The Trust owns 14 hotels with an
aggregate of 4,465 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
scope and amount of the Trust’s renovation plan. 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.