Deals

Park Hotels to Buy Chesapeake Lodging in a $2.7 Billion Deal

  • Purchase will upgrade portfolio quality, Park Hotels CEO says
  • New York properties to be sold as part of the transaction

Source: Getty Images

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Park Hotels & Resorts Inc. agreed to acquire Chesapeake Lodging Trust in a cash-and-stock deal valued at $2.7 billion, helping Park to secure its position as the second-largest lodging real estate investment trust.

Chesapeake shareholders will get $11 in cash and 0.628 of a share of a Park common stock for each of their shares, for an aggregate value of $31.71 a share, the companies said in a statementBloomberg Terminal Monday. That represents an 8.2 percent premium to Chesapeake’s closing price on Friday.