Chesapeake Lodging Trust Acquires Hyatt Place New York Midtown South

  Chesapeake Lodging Trust Acquires Hyatt Place New York Midtown South

Business Wire

ANNAPOLIS, Md. -- March 14, 2013

Chesapeake Lodging Trust (NYSE: CHSP) (the "Trust") announced today that it
has closed on the previously announced acquisition of the newly developed,
185-room Hyatt Place New York Midtown South located in New York, New York for
a purchase price of $76.2 million, or approximately $412,000 per key. The
Trust entered into an agreement with Real Hospitality Group, the operator of
the Trust’s other hotel in New York located in Midtown on 31^st Street, to
manage the hotel.

James L. Francis, Chesapeake’s President and Chief Executive Officer, stated,
“We are very pleased to acquire our second hotel in the highly desired Midtown
area of Manhattan at a very compelling per key price. Similar to the Holiday
Inn New York City Midtown – 31^st Street, which we acquired in late December
2011 and opened for business in January 2012, we expect the Hyatt Place to
ramp-up very quickly given the robust demand in Manhattan, the strength of the
Hyatt brand, and our operator’s extensive experience managing hotels in New
York City."

The Trust funded the acquisition with available cash on hand, a credit at
closing equal to the outstanding balance of a construction loan provided to
the seller, and a $35.0 million advance under the Trust’s $60 million term
loan obtained in July 2012. The $35.0 million advance bears interest equal to
LIBOR, plus 3.25%. Contemporaneous with the $35.0 million advance, the Trust
entered into an interest rate swap to effectively fix the interest rate on the
$35.0 million advance for the remaining initial term of the loan at 3.65% per
annum. Under the terms of the interest rate swap, the Trust pays fixed
interest of 0.40% per annum on a notional amount of $35.0 million and receives
floating rate interest equal to the one-month LIBOR.

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 16 hotels with an aggregate of 4,907 rooms in seven
states and the District of Columbia. Additional information can be found on
the Trust’s website at www.chesapeakelodgingtrust.com.

Contact:

Chesapeake Lodging Trust
Douglas W. Vicari, 410-972-4142
 
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