Chesapeake Lodging Trust
) completed the acquisition of Hyatt Santa Barbara and 2 adjacent
properties for $61.0 million. This real estate investment trust
(REIT) entered into a definitive agreement with the parent
Hyatt Hotels Corporation
) before to acquire these assets.
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The property is strategically positioned on the Pacific Ocean and
is a stone's throw away from the shops and restaurants in
downtown Santa Barbara. The property consists of Hyatt Santa
Barbara with 171 rooms, Parkside Inn comprising 24 rooms and a
5-villa apartment building.
Hyatt Santa Barbara comprises four Spanish colonial buildings
with 3 stories each, which have been restored. Moreover, the
property is situated across the Santa Barbara beach along the
East Cabrillo Boulevard. The hotel consists of well-sized
guestrooms, which include 5 suites spanning 700 square feet, a
flexible meeting place spanning 10,000 square feet and a
full-service restaurant and lounge. Additionally, it possesses a
full-service spa, a heated outdoor pool and whirlpool, a business
service centre and a spacious fitness centre.
Recently, Hyatt completed the renovation of the Santa Barbara
property that cost the company roughly $12 million. Moreover,
Chesapeake Lodging is expected to refurbish the bar and
restaurant with an innovative design and service concept.
This acquisition is an important step for Chesapeake Lodging,
owing to the strength of the Hyatt brand and the compelling
growth opportunities that the Santa Barbara market provides. This
strategic move is expected to be accretive to the company's
long-term earnings and supplement its portfolio of premium
The company has been active on acquisitions of late. Recently,
Chesapeake Lodging acquired Hyatt Place New York Midtown South
for $76.2 million from Hyatt Hotels Corp. Moreover, in Sep 2012,
it acquired the 429-room Hyatt Regency Mission Bay Spa and Marina
hotel in San Diego, Calif. for $62.0 million.
Chesapeake Lodging owns luxury and upper-upscale hotels in some
of the most desirable locations in the United States. The company
specifically focuses on owning and acquiring hotels at prices
below replacement cost, with attractive return on investments and
significant upside potential. Currently, the company owns 20
hotels with an aggregate of 5,932 rooms in 8 states and the
districts of Columbia.
Chesapeake Lodging currently carries a Zacks Rank #2 (Buy). Other
stocks that are also worth a look with a Zacks Rank #1 (Strong
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