ARLINGTON, Va.– Jun. 4, 2018 — Chesapeake Lodging Trust (NYSE:CHSP) (the “Trust”) announced today that it has entered into an agreement to sell the 200-room Hyatt Centric Santa Barbara located in Santa Barbara, California for a sale price of $90.0 million, or approximately $450,000 per key, subject to customary pro-rations at closing. Completion of the proposed sale is expected to close within the next 60 days, subject to customary closing requirements and conditions.
The Trust acquired the Hyatt Centric Santa Barbara in June 2013 for $61.0 million, or $305,000 per key. In April 2016, the Trust sold a separate, five-room villa building and related land parcel at the Hyatt Centric Santa Barbara for $2.1 million to an unrelated buyer. The $90.0 million sale price represents a 5.4% trailing twelve month NOI cap rate and is expected to produce a 15.3% unlevered IRR over the Trust’s ownership period.