ANNAPOLIS, Md.--(BUSINESS WIRE)--Chesapeake Lodging Trust (NYSE: CHSP) (the "Trust") announced today that
it has purchased the fee simple interest in the 313-room Hyatt
Fisherman’s Wharf from an affiliate of Hyatt Hotels Corporation
(NYSE: H) for $103.5 million, or approximately $331,000 per key. The
Trust entered into an agreement with Evolution Hospitality to manage the
hotel under a franchise agreement with a Hyatt affiliate.
"While the hotel has been very well maintained by Hyatt, we see
an opportunity to further enhance the asset. The timing of the eight
million dollar project will be closely coordinated with our management
team to minimize any operational disruption"
“We are very excited to acquire our third San Francisco hotel while we
grow our relationship with Hyatt,” stated James L. Francis, President
and Chief Executive Officer of the Trust. “Hyatt Fisherman’s Wharf is an
outstanding property with a terrific location that complements our
hotels in the Financial District and Union Square.”
“One of the core ways we will continue to achieve strategic growth is
through capital recycling. This transaction creates value as it unlocks
capital at a strong pricing level, maintains our long-term brand
presence in the market, and expands a relationship with a good owner who
is investing in the property through a renovation program,” said Stephen
Haggerty, global head, real estate and capital strategy for Hyatt. “With
multiple Hyatt hotels in its portfolio, we are excited to deepen our
relationship with Chesapeake and look forward to more collaboration in
the future.”
The five-story property is located on North Point Street in the heart of
Fisherman’s Wharf, one of San Francisco’s main tourist destinations, and
is proximate to Ghirardelli Square, the Cannery, Pier 39, North Beach,
Chinatown, Alcatraz, the Maritime National Historic Park and the Cable
Car turnaround. The hotel is also a short distance from the Financial
District, Nob Hill, Union Square and the Moscone Convention Center. The
hotel features 313 well sized guestrooms including 8 suites, 19,000
square feet of flexible meeting space, a full service restaurant and
lounge, a coffee shop, a heated outdoor pool and a large
state-of-the-art fitness center. The property also includes
approximately 4,700 square feet of ground level retail space.
The Trust intends to commence a renovation of the hotel in the fourth
quarter 2014. The design will capture a sophisticated spin on the
maritime and nautical themes presenting itself within the San Francisco
Wharf. “While the hotel has been very well maintained by Hyatt, we see
an opportunity to further enhance the asset. The timing of the eight
million dollar project will be closely coordinated with our management
team to minimize any operational disruption,” continued Mr. Francis.
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 19 hotels with an
aggregate of 5,727 rooms in eight states and the District of Columbia.
Additional information can be found on the Trust’s website at www.chesapeakelodgingtrust.com.
ABOUT HYATT HOTELS CORPORATION
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global
hospitality company with a proud heritage of making guests feel more
than welcome. Thousands of members of the Hyatt family strive to make a
difference in the lives of the guests they encounter every day by
providing authentic hospitality. The Company's subsidiaries manage,
franchise, own and develop hotels and resorts under the Hyatt®,
Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place® and Hyatt House® brand names and have
locations on six continents. Hyatt Residential Group, Inc.,
a Hyatt Hotels Corporation subsidiary, develops, operates,
markets or licenses Hyatt ResidencesTM and Hyatt Residence ClubTM. As of
March 31, 2013, the Company's worldwide portfolio consisted of 508
properties in 46 countries. For more information, please visit www.hyatt.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. When we use the words “will,” may,”
“anticipate,” “estimate,” “should,” “expect,” “believe,” “intend,” or
similar expressions, we intend to identify forward-looking statements. Such statements are subject to numerous assumptions and
uncertainties, many of which are outside of Chesapeake Lodging Trust’s
or Hyatt’s control, which could cause actual results to differ
materially from those expressed in or implied by the content of this
document. Forward looking statements made in this press release
are made only as of the date of their initial publication and neither
party undertakes an obligation to publicly update any of these forward
looking statements as actual events unfold.
Contacts
Chesapeake Lodging Trust
Douglas W. Vicari, 410-972-4142
or
Hyatt
Hotels Corporation
Katie Rackoff, 312-780-5361
katie.rackoff@hyatt.com