Chesapeake Lodging Trust Acquires Hyatt Santa Barbara
June 27 2013 - 2:05PM
Business Wire
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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Chesapeake Lodging TrustDouglas W. Vicari,
410-972-4142orHyatt Hotels CorporationAmy Patti,
312-780-5620amy.patti@hyatt.com
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