Chesapeake Lodging Trust Acquires Hyatt Santa Barbara
ANNAPOLIS, Md. -- June 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 Residences^TM and
Hyatt Residence Club^TM. As of March31, 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
Photos/Multimedia Gallery Available:
Chesapeake Lodging Trust
Douglas W. Vicari, 410-972-4142
Hyatt Hotels Corporation
Amy Patti, 312-780-5620
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