ANNAPOLIS, Md.--(BUSINESS WIRE)--Jun. 27, 2013--
Chesapeake Lodging Trust (NYSE: CHSP) (the “Trust”) and Hyatt Hotels
Corporation (NYSE: H) (“Hyatt”) announced today that the Trust has
acquired the fee simple interest in the Hyatt
Santa Barbara and two adjoining properties totaling 200 rooms from a
Hyatt affiliate for $61.0 million, or approximately $305,000 per key.
The Trust entered into a management agreement with HEI Hotels and
Resorts to operate the hotel under a franchise agreement with a Hyatt
affiliate.
“We are very excited to acquire the recently renovated
Hyatt Santa
Barbara while we continue to grow our relationship with Hyatt,” stated
James L. Francis
, President and Chief Executive Officer of the Trust.
“The property is ideally located on the Pacific Ocean and walking
distance to the shops and restaurants of downtown Santa Barbara. The
city is an extremely popular travel destination with its Mediterranean
climate, miles of coastline and beaches, wineries, upscale shopping and
restaurants.”
“We recognized the hotel’s long-term potential when we acquired it and
leveraged our expertise in architecture and design to further increase
its market value. We are delighted to be deepening our relationship with
Chesapeake and leveraging that higher market value to recycle capital
while maintaining a long-term brand presence in the market,” said
Stephen Haggerty
, global head, real estate and capital strategy for
Hyatt.
The property is comprised of the 171-room Hyatt Santa Barbara, the
24-room Parkside Inn and a five-villa apartment building that is
currently used for long-term, monthly lease stays. Hyatt Santa Barbara
is made up of four historic, three-story Spanish colonial buildings that
have been carefully restored and are primarily located across from the
Santa Barbara beach along East Cabrillo Boulevard. The hotel offers
well-sized guestrooms, including five suites that average over 700
square feet, 10,000 square feet of flexible meeting space, a
full-service restaurant and lounge, a recently created full-service spa,
a heated outdoor pool and whirlpool, a business service center and a
large state-of-the-art fitness center. The Trust is still evaluating its
options, but has initial plans to renovate and convert the five-villa
apartment building into an all luxury suite building.
Hyatt recently completed a $12 million renovation of the property,
addressing all guestrooms, corridors, meeting spaces and the
registration lobby. The Trust will reposition the restaurant and bar
with a new design and service concept, drawing inspiration from the
picturesque ocean front beach views. “There is minimal work to be done
at the hotel following Hyatt’s extensive renovations,” continued Mr.
Francis. “The dynamic location along the Pacific Ocean creates the
perfect opportunity to create a vibrant food and beverage venue, which
will include outdoor seating spaces for both in-house guests and the
Santa Barbara community.”
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 20 hotels with an
aggregate of 5,932 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.

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Source: Chesapeake Lodging Trust and Hyatt Hotels Corporation
Chesapeake Lodging Trust
Douglas W. Vicari, 410-972-4142
or
Hyatt
Hotels Corporation
Amy Patti, 312-780-5620
amy.patti@hyatt.com