Chesapeake Lodging Trust is based in Annapolis, Md. It is a self-advised real estate investment trust (“REIT”). They are focused on investments primarily in upper-upscale hotels in major business, airport and convention markets. They are also open to premium properties in unique locations in the US. They believe that the current market conditions will offer attractive opportunities to acquire high-quality hotel properties, at prices well below replacement costs. They currently own four hotel properties with an aggregate of 1,269 rooms in two states.
Chesapeake Lodging Trust is buying the Le Meridien San Francisco hotel for $143 million. They plan to finance the deal with a $60 million term loan, a $45 million borrowing under its revolving credit agreement and remaining proceeds from an equity offering. They expect that the hotel will produce strong yields for our shareholders as the San Francisco lodging market continues to recover.
The senior executive officers of Chesapeake Lodging Trust have extensive experience in the lodging industry, including the acquisition, development, financing, repositioning, asset management and disposition of hotels. They believe that their contacts and longstanding relationships across the industry will definitely help them in locating attractive acquisition opportunities. They intend to qualify as a REIT for U.S. federal income tax purposes.
Via: starwoodhotels, bloomberg