Chesapeake Lodging Trust Acquires the Ace Hotel and Theater Downtown Los Angeles
April 30 2015 - 4:05PM
Business Wire
Chesapeake Lodging Trust (NYSE:CHSP) (the “Trust”) announced
today that it has closed on the acquisition of the Ace Hotel
Downtown and The Theater at Ace Hotel, located in Los Angeles,
California for a purchase price of $103.0 million, or approximately
$566,000 per key. The Trust entered into a new management agreement
with Ace Hotel Group to continue to brand and operate the
hotel.
“We are thrilled to announce our acquisition of the Ace Hotel
and Theater and further expand our presence in the dynamic Los
Angeles market,” commented James L. Francis, Chesapeake Lodging
Trust’s President and Chief Executive Officer. “This historic
building and theater was completely restored and was reopened early
last year; the level of detail and immaculate condition of the
facility is remarkable. We are very excited to add another
first-class asset to our growing high-quality portfolio.”
After a nearly two year comprehensive renovation and restoration
of the historic 1920’s building, the Ace Hotel Downtown Los Angeles
opened to the public in January 2014. The property contains the
182-room hotel and the stunning and meticulously restored
1,600-seat theater, offering the most unique meeting, function and
entertainment venue of any hotel in Los Angeles. “The theater
booking pace is up considerably from its first year and will host
over 100 events in 2015,” continued Mr. Francis. “We estimate that
the theater alone will generate revenues in excess of $4.4 million
and net operating profit of over $2 million.”
The historic 14-story Spanish Gothic property is located at
South Broadway and 9th Street in the rapidly developing Broadway
and Fashion corridor of Downtown Los Angeles. There are 15 Loft
Suites which feature a private kitchenette and range from 479 to
703 square feet. The 633-square foot Ace Suite includes a living
space, a private kitchenette, and a 494-square foot private
terrace. Each well laid out room offers a unique design which
maintains the exposed concrete ceiling, Homasote covered walls,
minimalist furniture, antiqued brass fixtures and steel framed
glass windows. Guestroom amenities include flat screen TVs, a Revo
radio, HSIA, Rudy’s Toiletries, and Pearl+ soaps with acoustic
guitars and turntables in select rooms.
The Ace Hotel features a popular and varied assortment of food
and beverage outlets for guests and visitors to enjoy. Upstairs at
Ace Hotel Downtown Los Angeles, a popular rooftop bar venue is
seamlessly contained between the rooftop pool and an indoor and
outdoor lounge area of nearly 2,000 square feet. With locally
inspired décor and artwork, including the original salvaged
theatrical lights, the space is incredibly attractive with outdoor
landscaping and living walls.
Connected to the lobby is the hotel’s main three-meal
restaurant, L.A. Chapter, which also has its own street front
entrance and outdoor patio on Broadway. L.A. Chapter is a carefully
cultivated brasserie with a focus on locally sourced vegetables and
seafood. The 1,161-square foot space has a seating capacity of 121
and includes a full service bar. Adjacent to the lobby and L.A.
Chapter is the Coffee Counter that serves Stumptown Coffee,
delivering a high-end coffee and pastry experience.
Located above the lobby level and L.A. Chapter is the
appropriately named The Mezzanine. With a variety of seating
options, the 972-square foot space includes a cocktail bar and also
serves as flexible meeting and private event space which can
accommodate groups up to 85 people.
In addition to the theater, the hotel has 2,160 square feet of
dedicated meeting and banquet space throughout three different
meeting areas, including the 1,600-square foot Segovia Hall. All of
the meeting spaces benefit from natural lighting and connecting
doors, allowing for easy break-outs and flexibility for groups.
There is also a fitness center providing guests with 24-hour access
to a fully equipped facility with reclaimed hardwood floors from an
old gymnasium. Behind the reception desk is an upscale gift shop
selling stylish clothing and products featured in the guestrooms,
as well as a photo booth for guests to document their stay.
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
22 hotels with an aggregate of 6,691 rooms in nine states and the
District of Columbia. Additional information can be found on the
Trust’s website at www.chesapeakelodgingtrust.com.
Chesapeake Lodging TrustDouglas W. Vicari,
410-972-4142
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